Stocks Slip on Wall Street, JPMorgan Chase, Wells Fargo Revenues Fall

Nichole Harper
12 Apr, 2013
New York City

U.S. stocks traded lower after retail sales fell unexpectedly and consumer sentiment index declined to a 9-month low. JPMorgan Chase said first quarter net income increased 33% and Wells Fargo net jumped 22% but revenues fell. JC Penney seeks help to raise $1 billion.

[R]11:00 AM New York – U.S. stocks traded lower after retail sales fell unexpectedly and consumer sentiment index declined to a 9-month low. JPMorgan Chase said first quarter net income increased 33% and Wells Fargo net jumped 22% but revenues fell. JC Penney seeks help to raise $1 billion.[/R]

Stocks in New York traded lower after retail sales showed a decline and consumer sentiment in April dropped to a 9-month low.

Retail sales fell unexpectedly in March by 0.4% according to the latest data released by the Commerce Department. February sales data was revised higher.

The retail sales are unadjusted for inflation and the latest monthly sales were down on weaker gasoline prices at pump stations.

The retail sales, as calculated for the gross domestic product that excludes auto dealers, service stations and building materials estimate declined 0.2%.

The producer prices index, a measure of wholesale inflation, declined 0.6% in March according to the Labor Department.

Consumer sentiment index in April declined to 72.3 from 78.6 in March according to the data tracked by the University of Michigan and Thomson Reuters.

The Germany based consumer products conglomerate Joh. A. Benckiser already controlled 15% of the holding company.

The offer price of €12.50 a share represents a 36% premium to company’s volume-weighted average closing price for the three months to March 27. The stock edged lower today because the potential deal was announced on March 28 with the price of €12.75 a share.

Benckiser is funding the deal with €4.9 billion of equity and €3 billion of debt.

Investment vehicle controlled by Reimann family of Germany recently acquired Caribou Coffee and Peet’s Coffee & Tea for a combined price of $1.3 billion.

In London trading, FTSE 100 index slid 0.3% or 20.5 to 6,396 and in Frankfurt the DAX index dropped 1.2% to 93.6 to 7,778. In Paris, CAC 40 index slumped 0.8% or 31.4 to 3,744.

Global Markets

Stocks in Japan rested after a two-week recent leg-up in a six-month rally as the yen hovered near 100 mark and investors look for the evidence that the monetary stimulus is working.

For the week, the Nikkei soared 5.1% and the broader Topix jumped more than 53% since November.

Stocks declined in a weak session as markets in Asia were subdued ahead of economic data scheduled to release from China on Monday and the indexes declined in India after Infosys plunged 21% on weak outlook and pricing pressure.

India reported industrial output increased 0.6% in February and industrial production increased 9.5%. Inflation as measured by Consumer Price Index declined for the time in six months in March to 10.39%.

India has been battling a surge in consumer prices for the last six years in a row and the government’s mishandling of bumper food crop supplies.

The yen traded at 99.74 against one dollar and inched towards the 100 yen level last seen in April 2009 and the dollar gained 6% in the week and jumped 18% since November.

For the week, the index in Australia increased 2.5% and markets in South Korea declined 1.6% on the simmering tensions with North Korea.

Stocks in Review

JPMorgan Chase ((JPM)) decreased 0.6% after it reported first quarter profit increase of 33% that was ahead of expectations but revenues were lower than estimated.

Wells Fargo ((WFC)) dropped 1.9% after it reported a jump in net income of 22% but reported a decline in revenues.

JC Penney ((JCP)) declined 3% after the company reported it hired Blackstone to help raise $1 billion.