JPMorgan Earnings Drag Market Indexes

123jump.com Staff
15 Jan, 2010
New York City

U.S. stocks traded lower in the morning and commodities fell and U.S. Treasuries advanced. JP Morgan Chase net tripled but retail banking unit reported a loss dragging market sentiment. Consumer price index increased 0.1% in December and for the year advanced 2.7%.

[R]10:35 AM New York – U.S. stocks traded lower in the morning and commodities fell and U.S. Treasuries advanced. JP Morgan Chase net tripled but retail banking unit reported a loss dragging market sentiment.[/R]

U.S. stocks in the early trading declined after JPMorgan Chase reported sharply higher earnings but its retail banking segment generated losses in rising consumer loan losses.

Commodities declined and Treasuries advanced.

The index of consumer prices increased 0.1% in December. The unadjusted index increased 2.7% in the last one year to the month. The energy index increased 4.1% driving the index higher.

JPMorgan Chase reported fourth quarter net tripled from a year ago as fee income offset the losses in credit card loans and consumer banking. The company also increased the loan loss reserve for consumer loans by $1.9 billion to $32.5 billion.

The dollar advanced against the euro on the worries that Greece budget deficit may force the ECB and Germany to bailout the nation and Spain, Portugal and Italy may need additional assistance.

One euro traded at $1.436 and one dollar fetched 90.94 yen.

Earnings Review

JPMorgan Chase & Co, the bank reported fourth quarter revenues rose 35% to $23.2 billion from $17.2 billion a year ago. Net income in the quarter rose 367% to $3.28 billion or 74 cents per diluted share compared to net income of $702 million or 6 cents per share a year ago.

Total net revenues for the fiscal year 2009 rose 49% to $100.4 billion from $67.3 billion a year ago. Net income for the year rose 109% to $11.7 billion or $2.26 per diluted share compared to net income of $5.6 billion or $1.35 per share a year ago.

Intel Corporation, the maker of computer microprocessors said fourth quarter revenues rose 29% to $10.6 billion from $8.2 billion a year ago. Net income in the quarter rose 883% to $2.3 billion or 40 cents per diluted share compared to net income of $234 million or 4 cents per share a year ago.

Net revenues for the fiscal year 2009 fell 7% to $35.1 billion from $37.6 billion a year ago. Net income for the year fell 17% to $4.4 billion or 77 cents per diluted share compared to net income of $5.3 billion or 92 cents per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 74.42 or 0.68% to 10,982.10, and Hang Seng index in Hong Kong decreased 62.79 or 0.29% to 21,654.16, and CSI 300 index in China higher 13.69 or 0.39% to 3,482.74. ASX 200 index in Australia increased 1.60 or 0.03% to 4,899.60. The FTSE Bursa KL Composite index in Malaysia was higher 3.87 or 0.30% to 1,298.58.

The Kospi Index in South Korea increased 16.03 or 0.95% to close at 1,701.80. SET index in Thailand closed lower 2.90 or 0.39% to 746.52. JSE Index in Indonesia increased 1.91 or 0.07% to 2,647.09. The Sensex index in India decreased 30.57 or 0.17% to 17,554.30.

Europe Markets Review

In London FTSE 100 Index traded higher 14.18 or 0.26% to 5,512.38, in Paris CAC 40 Index increased 0.10 or 0.00% to 4,015.87 and in Frankfurt DAX index traded lower 32.90 or 0.55% to 5,955.98. In Zurich trading SMI increased 3.58 or 0.05% to 6,631.00.