Wednesday, June 13, 2012

U.S. Stocks Reverse Early Gain (DELL, JNJ, SMG, LCC,

U.S. stocks turned lower after opening higher Wednesday as J.P. Morgan Chase & Co. CEO Jamie Dimon testified on Capitol Hill and after U.S. retail sales fell in May for a second month. On Tuesday, U.S. equities rallied on speculation of central bank moves to bolster the economy ahead of the Federal Open Market Committee’s policy-setting meeting next week.

The Dow Jones Industrial Average was down 23.01 (-0.18%) to 12,550.79, and the Standard & Poor's 500-stock index lost 2.26 (-0.17%) at 1,321.92. The Nasdaq Composite fell 3.68 (-0.13%) at 2,839.39.

JPMorgan Chase & Co.(NYSE:JPM) CEO Jamie Dimon told Congress on Wednesday that senior bank executives responsible for a $2 billion trading loss will probably have some of their pay taken back by the company.
"It's likely that there will be clawbacks," Dimon told the Senate Banking Committee. Under bank policy, Dimon said, stock and bonuses can be recovered from executives, even for exercising bad judgment. The policy has never been invoked, he said. Shares of JPM jumped 2.55% to $34.64.

U.S. retail sales slipped for the second consecutive month in May, the first string of declines in nearly two years. While the measure fell by less than expected in May, April retail sales were revised down into negative territory. Businesses held more inventory than expected in April because of sluggish sales.

Dell Inc.(NASDAQ:DELL) climbed 4% after he personal-computer maker’s CEO told analysts the company would look to reduce expenses by more than $2 billion during the next three years, according to Bloomberg News. Michael Dell’s comments came a day after Dell initiated an 8-cent a share quarterly dividend.

Johnson & Johnson(NYSE:JNJ) added 0.82% after it received regulatory clearance to close its $19.7 billion bid for medical-device maker Synthes. Analysts from J.P. Morgan Chase, Jefferies and Raymond James Financial subsequently upgraded the stock to ratings equivalent to "buy."

Scotts Miracle-Gro Co(NYSE:SMG) slumped over 7% after announcing it expects to fall short of estimates of full-year earnings and sales growth it had provided earlier as a result of slowing consumer demand and lower-than-expected margin rates.

US Airways Group, Inc.(NYSE:LCC) added 7% as it seeks to file paperwork with U.S. regulators as early as next month for a proposed merger with bankrupt AMR, Reuters reports. LCC is said to believe a regulatory filing before rather than after reaching a deal would bolster its case as AMR's creditors compare the merits of a merger with a stand-alone restructuring plan.

No comments:

Post a Comment

Privacy Policy | Legal Disclaimer