DJIA Week in Review: JPMorgan Chase and Bank of America Settle, McDonald’s Disappoints in Europe
The Dow Jones Industrial Average (NYSEARCA:DIA) finished the week down 0.5% at 12,801. Most of the week centered around the debt drama in Greece and whether the country prefers to default or accept a bailout. Here’s the top news from the DJIA companies this past week:
American Express (NYSE:AXP): Both revenue growth and earnings is lagging compared to Visa (NYSE:V) and Mastercard (NYSE:MA). Since American Express is trading near its yearly highs, a correction may be in order.
Alcoa (NYSE:AA): Although JP Morgan believes that Alcoa has the potential for a significant upside, one won’t find that in this market. Alcoa’s downward slide can be considered a correction from Friday’s rise, and concerns about Greece.
Boeing (NYSE:BA): Problems and manufacturing issues with its 787 fleet has prompted a recall. The company insists that the problems do not pose any short-term safety issue.
Intel Corporation (NASDAQ:INTC): After a strong week, Intel gave back some of those gains today. Intel is down with the market and tech in general.
Exxon Mobil (NYSE:XOM) was down because the price of oil slipped below $97. The decline can be attributed to increased crude supply in the United States, which is a trend that should continue until the spring. There is also the question of how the price of oil will be affected by stronger iran sanctions going forward.
Merck (NYSE:MRK): A promising anti-clotting drug called Vorapaxar was found to actually cause internal bleeding and even strokes. This discovery during trials does not help the fate of the drug.
McDonald’s Corporation (NYSE:MCD): Even though January sales figures were better than expected, gains in Europe of 4% were far lower than hoped for.
American Express Company (NYSE:AXP) targets 12%-15% EPS growth according to a presentation at the Company’s semi-annual Financial Community Meeting by Kenneth I. Chenault, Chairman and Chief Executive Officer and Stephen J. Squeri, Group President of the Company’s Global Corporate Services business.
Bank of America Corporation (NYSE:BAC): U.S. Attorney General Eric Holder, Department of Housing and Urban Development Secretary Shaun Donovan, Iowa Attorney General Tom Miller and Colorado Attorney General John W. Suthers announced that the federal government and 49 state attorneys general have reached a landmark $25B agreement with the nation’s five largest mortgage servicers to address mortgage loan servicing and foreclosure abuses. The joint federal-state group entered into the agreement with the nation’s five largest mortgage servicers: Bank of America Corporation, JPMorgan Chase (NYSE:JPM), Wells Fargo & Company (NYSE:WFC), Citigroup (NYSE:C) and Ally Financial, formerly GMAC. The joint federal-state agreement requires servicers to implement comprehensive new mortgage loan servicing standards and to commit $25 billion to resolve violations of state and federal law. Under the terms of the agreement, the servicers are required to collectively dedicate $20B toward various forms of financial relief to borrowers. Mortgage servicers are required to fulfill these obligations within three years. In addition to the $20 billion in financial relief for borrowers, the agreement requires the servicers to pay $5B in cash to the federal and state governments.
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