JPMorgan Faces Fine, Sprint Loses Subscribers: Morning Buzzers
U.S. stock futures rose this morning, as investors wait on information from the Federal Reserve’s meeting on stimulus policy. The S&P 500 is heading for its biggest gain since January on positive earnings results from Facebook (NASDAQ:FB) and Visa (NYSE:V), after the index fell in June upon news that the Fed could end stimulus soon.
Futures at 8:30 a.m.: DJIA: +0.25% S&P 500: +0.28% NASDAQ: +0.39%
Here’s your cheat sheet to what’s buzzing this morning:
Sprint Corp. (NYSE:S) posted earnings this morning, with the company reporting net losses of $1.6 billion, up from $1.4 billion a year earlier. The company was hurt by the $623 million it cost to close Nextel, which also cost Sprint 1.05 million subscribers. But revenue also increased to its highest point ever of $7.2 billion, and the company has big plans for the cash it’s getting from SoftBank (SFTBY.PK) and wireless holdings from Clearwire (NASDAQ:CLWR).
Barclays (NYSE:BCS) is planning to raise $8.9 million from its shareholders, in order to meet new financial regulations in Europe. Britain’s financial regulator told the bank it needs an extra $19.7 billion in capital to strengthen against possible market shocks. Barclays is also facing a fine of 2 billion pounds for mis-selling products. Banks in Europe have been working to meet tougher financial regulations aimed at preventing a repeat of the financial crisis.
Pfizer (NYSE:PFE) reported quarterly earnings this morning. Profit was boosted to $14.1 billion by a spin-off of the company’s animal division Zoetis, and a patent settlement Pfizer won against Teva (NYSE:TEVA) and Sun Pharmaceuticals over the acid-reflux drug Protonix. Earnings per share of 56 cents beat analyst expectations, but revenue fell short of estimates at $12.97 billion.
JPMorgan Chase (NYSE:JPM) has been accused by the U.S. Federal Energy Regulatory Commission of fixing energy prices in California and the Midwest between September 2010 and June 2011. A person familiar with the case cited by Bloomberg has said the settlement would likely include a $400 million fine. One consumer advocacy group said, “JPMorgan picked the pockets of California households and businesses, and their manipulation increased the electric bills that people pay.”
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