Heavy Hitters: Big Banks Flat After Earnings, Apple Cutting iPhone 5C Production?
Shares of JPMorgan Chase (NYSE:JPM) closed the day flat after announcing its latest round of quarterly financial results. It was said that Jamie Dimon, JPMorgan Chase CEO, showed a bit of disappointment Friday after his bank, having taken a $7.2 billion hit from penalties, an anticipated pile-on of future litigation and other legal worries, posted its first quarterly loss since 2004. The results were a blow to Dimon, who has for quite a while used JPMorgan Chase’s reliable profit to push back on critics of its growing regulatory and legal problems. Employing unusually humble language for Dimon, he acknowledged that the first loss under his leadership is “very painful for me personally.” Shares of JPMorgan Chase are up 19 percent this year.
Wells Fargo (NYSE:WFC) shares also closed the day relatively flat after reporting its quarterly earnings. While the slowdown in the mortgage market did impede Wells Fargo’s growth to some degree, the bank reported that profit rose 13 percent in the third quarter. Improving the quality of its loans was one way in which Wells Fargo was able to outmaneuver the declines in mortgage originations and a release of $900 million from the stockpile of cash it set aside during the crisis to offset bad loans contributed to the stronger results as well. Shares of Wells Fargo are up 21 percent this year.
Shares of Starbucks (NASDAQ:SBUX) jumped almost 1 percent on Friday. Starbucks’ Howard Schultz is opening his mouth again, and this time, he’s asking you to opens yours too. According to Reuters, the CEO is now distributing petitions to his customers across the United States, and he’s urging them to help him pressure the government to end the political stalemate, and reopen the partially closed government.
Shares of Apple (NASDAQ:AAPL) edged slightly higher on Friday and continued to attract attention in late afternoon trading. Apple has apparently cut its iPhone 5C production by half, according to a report from MacRumors. This implies a quarterly output of around 13.7 million units (300,000 units to 150,000 units per day); Apple reportedly made the cuts due to Chinese grey market price drops, as the units are smuggled in illegally to help avoid the atmospheric asking price of about $725 that the Apple phone commands in China.
Don’t Miss: Is Gold Good for the Global Economy?
Follow Eric on Twitter @Mr_Eric_WSCS