Dow, S&P end lower; banks hit by JPMorgan
JPMorgan Chase & Co.'s surprise $2-billion trading loss prompted a sell-off in financial stocks Friday, with smaller declines across the broader market as investors decided this was more of a problem for investment banks than other industries.
Most of the 10 industries in the Standard & Poor's 500 index were flat or posted modest declines; financial stocks fell 1.1 percent. For that, the other investment banks could thank JPMorgan Chase, America's biggest bank. The stock plunged 9.28 percent, dragging other big banks down with it. Morgan Stanley fell 4.17 percent, and Goldman Sachs fell 3.94 percent. Citigroup fell 4.24 percent. Retail-focused banks fared better. Wells Fargo edged up 0.36 percent.
JPMorgan's blunder comes amid a political battle over how closely to regulate banks, though JPMorgan CEO Jamie Dimon said the trades would not have been affected by the so-called Volcker Rule, expected to take effect this summer.
The Dow Jones industrial average fell 34.44 points to close at 12,820.60. It had small gains and losses throughout the day before settling into the red. The Standard & Poor's 500 index fell 0.34 percent to close at 1,353.39. The Nasdaq composite index, which is heavily weighted with technology stocks, was up 0.01 percent to 2,933.82.---- AP
Out East with Doug Geed: Wine harvests, a fish market, baked treats and poinsettias NewsdayTV's Doug Geed visits two wineries and a fish market, and then it's time for holiday cheer, with a visit to a bakery and poinsettia greenhouses.
Out East with Doug Geed: Wine harvests, a fish market, baked treats and poinsettias NewsdayTV's Doug Geed visits two wineries and a fish market, and then it's time for holiday cheer, with a visit to a bakery and poinsettia greenhouses.
