Boeing Under Review, JPMorgan Investigated, and Gold Bears Growl: Market Recap
The markets fought for meager gains on Friday, and the S&P managed to go nowhere. Market participants digested some unsettling economic news, such as the growth of the U.S. trade deficit, and a higher-than-expected increase in inflation in China, which could curb government spending.
At the close: DJIA: +0.13%, S&P 500: 0.00%, NASDAQ: +0.12%.
On the commodities front, Oil (NYSE:USO) dropped 0.14 percent to $93.69 per barrel. Precious metals were also down, with Gold (NYSE:GLD) falling 0.92 percent to $1,662,50 per ounce, and Silver (NYSE:SLV) falling 1.51 percent to $30.45 per ounce. The yield for the 10-year T-bill fell 0.033 points to 1.862 percent.
By setting aside less money to cover bad loans, Wells Fargo (NYSE:WFC) was able to break profit records in the most recent quarter. Coupled with an increase in revenue from mortgage fees, the change boosted profit 24 percent in the three months ended in December. However, shares closed down on Friday as the bank reported that it made fewer mortgage loans in the third quarter and net interest margin declined… (Read more.)
Boeing’s (NYSE:BA) 787 Dreamliner has had five mishaps in as many days. What started as bearish grumblings about so-called “teething pains” has turned into a full-blown review from the Federal Aviation Administration. Shares ended the regular session down 2.5 percent. (Read more.)
No monetary penalty is expected, but JPMorgan Chase (NYSE:JPM) will likely be issued a cease-and-desist order for compliance weakness by the Office of the Comptroller of the Currency and the Federal Reserve. While official action may come as soon as Friday, the status of the inquiry could change and the order could be postponed a week… (Read more.)
If the price movement of a stock is proxy for buzz, then investors are expecting Facebook (NASDAQ:FB) to report one hell of a fourth quarter. The world’s largest social network will release its year-end results on January 31, but there’s no patience in today’s fast-paced tech market and — as has always been the case with Facebook — speculation is moving the stock ahead of its earnings and a “mystery” event next week… (Read more.)
The recent price movement of gold has been frustrating for some people. The yellow precious metal logged its twelfth consecutive annual gain in dollar terms and climbed higher against every major fiat currency in 2012. However, gold has been stuck in consolidation mode and finished the year with its worst quarter in four years. Furthermore, some market participants are claiming the bull market is over… (Read more.)