By Rita Nazareth and Allison Bennett - Jan 13, 2012 9:54 PM GMT+0700
Jan. 13 (Bloomberg) -- Michael Holland, chairman of Holland & Co., talks about JPMorgan Chase & Co.'s fourth-quarter earnings reported today and outlook. The largest U.S. bank by assets said net income fell 23 percent to $3.73 billion, or 90 cents a share, as trading revenue and investment-banking fees declined. Holland speaks with Erik Schatzker, Scarlet Fu and Stephanie Ruhle on Bloomberg Television's "InsideTrack." (Source: Bloomberg)
Jan. 13 (Bloomberg) -- Richard Staite, an analyst at Atlantic Equities LLP, talks about the outlook for JPMorgan Chase & Co.'s fourth-quarter results to be reported today, Wells Fargo & Co.'s dividend, and expectations for the U.S. banking industry. He speaks with Mark Barton on Bloomberg Television's "Countdown." (Source: Bloomberg)
Jan. 13 (Bloomberg) -- Norman Chan, head of investment at Calibre Asset Management, discusses the outlook for Asian economic growth and stocks. He speaks from Hong Kong with Caroline Hyde on Bloomberg Television's "First Look." (Source: Bloomberg)
Stocks fell, trimming a weekly gain, while the euro and commodities slid following reports that several European countries may face imminent credit downgrades by Standard & Poor’s. Yields on German bunds slid to record lows and Treasuries rallied.
The S&P 500 fell 0.8 percent to 1,285.71 at 9:53 a.m. in New York, paring its weekly gain to 0.6 percent. The Stoxx Europe 600 Index slipped 0.4 percent after increasing as much as 0.7 percent earlier. The euro slumped 1 percent to $1.2682, near a 16-month low. Treasuries extended gains, sending the 10-year note’s yield down six basis points to 1.87 percent, and Italian, Spanish and Belgian bonds dropped. Germany’s 30-year yield lost as much as 10 basis points to 2.33 percent.
The downgrades may happen as soon as today, according to Dow Jones Newswires, which cited European Union sources. Germany’s rating will not be cut, Reuters reported, citing a senior euro-area source. Banks led losses in U.S. stocks after JPMorgan Chase & Co. reported a drop in profit, sending shares of the largest U.S. bank by assets down as much as 4.7 percent.
“The cloud of Europe has weighed on investors’ sentiment,” Keith Wirtz, who oversees $14.6 billion as chief investment officer at Fifth Third Asset Management in Cincinnati, said in a telephone interview. “These downgrading actions in Europe were expected down the road, not right now.”
Financial Shares Slump
Financial shares in the S&P 500 lost 1.7 percent as a group to lead the S&P 500’s drop as Bank of America Corp., Wells Fargo & Co. and Citigroup Inc. lost at least 1.9 percent. Declines in trading revenue and investment banking fees sent JPMorgan’s fourth-quarter profit down 23 percent to $3.73 billion, or 90 cents a share, matching the average estimate of 90 cents by 28 analysts surveyed by Bloomberg.
Wells Fargo & Co., Citigroup Inc. and Goldman Sachs Group Inc. are due to release results next week.
The S&P 500 had risen for four straight days, bringing this week’s gain to 1.4 percent and its 2012 advance to 3 percent before today.
The Stoxx 600 rose earlier following a report the European Banking Authority will postpone stress tests, while borrowing costs fell at an Italian debt auction. Italy sold 3 billion euros ($3.8 billion) of bonds maturing in 2014 to yield 4.83 percent, compared with 5.62 percent at the previous auction.
To contact the reporters on this story: Allison Bennett in New York at abennett23@bloomberg.net; Rita Nazareth in New York at rnazareth@bloomberg.net
To contact the editor responsible for this story: Chris Nagi at chrisnagi@bloomberg.net
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