July 6, 2022

Dow Ends 10-Day Climb as JPMorgan Leads Dip

A decline in shares of JPMorgan Chase after the bank was hit by a one-two punch of bad news weighed on the market.

The Dow snapped its 10-day winning streak, when it racked up a series of nominal highs, which are unadjusted for inflation. Stocks have rallied since the start of the year on signs of an improving economy and support for the recovery from the Federal Reserve.

On Thursday, the S. P. 500 ended within 2 points of the closing price of 1,565.15 it hit in October 2007. On Friday, the benchmark index ended the session about 5 points away. For the week, the S. P. 500 rose 0.6 percent. It is up 9.43 percent this year.

Investors could use the pause to consolidate bets before pushing the market higher again, said Clayton M. Albright III, director of asset allocation at Wilmington Trust Investment Advisors in Wilmington, Del.

“I don’t think that one or two days’ movement is really going to change the underlying momentum of this market, which I still think is pretty strong at this point,” Mr. Albright said.

JPMorgan Chase was the biggest drag on the S. P. 500 and one of the biggest weights on the Dow, falling 98 cents, or 1.92 percent, to $50.02.

The Fed told JPMorgan and Goldman Sachs that they must fix flaws in how they determine capital payouts to shareholders, though the central bank still approved their plans for share buybacks and dividends.

A Senate report made public Thursday after the markets had closed also contended that JPMorgan had ignored risks, misled investors, fought with regulators and tried to work around rules as it dealt with mushrooming losses in a derivatives portfolio. A former top JPMorgan official told lawmakers on Friday that she was not to blame for the losses.

Goldman shares, however, recovered from early weakness to gain 82 cents, or 0.53 percent, to $154.84. Shares of rival Bank of America rose 3.8 percent, to $12.57.

The Dow Jones industrial average slipped 25.03 points, or 0.17 percent, to 14,514.11. The S. P. 500 lost 2.53 points, or 0.16 percent, to 1,560.70. The Nasdaq composite index dropped 9.86 points, or 0.30 percent, to 3,249.07.

For the week, the Dow rose 0.8 percent and the Nasdaq gained 0.14 percent. The Dow is up 10.76 percent this year and the Nasdaq is up 7.6 percent.

Supporting the Nasdaq, shares of Apple rose 2.58 percent, to $443.66.

Data from the Lipper service of Thomson Reuters showed investors poured $11.26 billion of new cash into stock funds in the latest week, the most since January.

The benchmark 10-year Treasury note rose 13/32, to 100 3/32, and its yield fell to 1.99 percent, from 2.04 percent late Thursday.

Article source: http://www.nytimes.com/2013/03/16/business/daily-stock-market-activity.html?partner=rss&emc=rss

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