Stocks Recover As Tech Gains (NVDA, JPM, C, BAC, GS, BRCM, AMD, HOG, FIO

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U.S. stocks turned higher after opening lower on Friday as J.P. Morgan Chase & Co. spooked investors by announcing a $2 billion trading loss it made by betting on credit markets by one of its employees.The Dow Jones Industrial Average added +43.03​(0.33%) to 12,898.07, and the Standard & Poor's 500-stock index climbed+4.95 (0.36%) to 1,362.94. The Nasdaq Composite rose +19.94 (0.68%) at 2,953.58.For every three stocks on the rise four fell on the New York Stock Exchange. Financial sector is the worst performing sector, while the tech stock sector is outperforming and supporting the broader market with NVIDIA Corporation (NASDAQ:NVDA) leading the sector on robust outlook.

NVIDIA Corporation(NASDAQ:NVDA) shares soared 8.50% to $13.48 after the company said that it earned $60.4 million, or 10 cents a share on revenue of $1.05 billion, compared to a year ago profit of $135.2 million, or 22 cents a share on revenue of $990 million. It forecast a second-quarter gross margin of 51.2 percent, plus or minus one percentage point, compared with 50.1 percent in the first quarter. It said expenses would rise to $418 million in the second quarter from $390.5 million in the first quarter.Other stocks within the sector also jumped with Advanced Micro Devices, Inc.(NYSE:AMD) rose 3.10% and Broadcom Corporation(NASDAQ:BRCM) climbed 2.50%.

JPMorgan Chase & Co.(NYSE:JPM), nation’s largest bank by assets, spooked investors late Thursday by announcing a sharp $2 billion losses due to a mistake by one of its employees at the bank’s chief investment office, who took large bet in the credit market. Moreover, this would wipe out the bank’s entire second quarter earnings. The bank compensated $1 billion of these losses from gains on securities sales.With the $2 billion loss, Dimon said capital positions under Basel III will fall to 8.2% from 8.4%.
The bank smashed its estimate for the unit that houses the Chief Investment Office to $800 million in second-quarter losses from a previous estimate of $200 million in profits. J.P. Morgan, the nation’s largest bank by assets, said in its quarterly filing with regulators Thursday that the plan it has been using to hedge risks “has proven to be riskier, more volatile and less effective as an economic hedge than the firm previously believed.”
Shares of JPM slumped 7.40% to $37.73.

Other financial stocks also sold off with Citigroup Inc.(NYSE:C) lost 2.70%, Goldman Sachs Group, Inc.(NYSE:GS) fell 3% and Bank of America Corp (NYSE:BAC) declined 2%.

Harley-Davidson, Inc.(NYSE:HOG) slid 4% after analyst at Citi warns that its channel checks indicate April and early May motorcycle sale slowed significantly to a 1%-3% range after skyrocketing 29% in March. The full-May/June numbers may tell the true story due to the volatile nature of motorcycle buying trends.

Fusion-IO, Inc.(NYSE:FIO) soared 9% on a rumor it turned down a $33/share offer from DELL. A Dell spokesperson refuses comment.