Mid-Morning Market Update: Markets Gain; J.P. Morgan Q4 Profit Beats Street View
Following the market opening Tuesday, the Dow traded up 0.22 percent to 16,293.34 while the NASDAQ surged 0.55 percent to 4,135.84. The S&P also rose, gaining 0.33 percent to 1,825.17.
J.P. Morgan Chase & Co (NYSE: JPM) reported a 7% drop in its fourth-quarter profit. J.P. Morgan's quarterly profit declined to $5.3 billion, or $1.30 per share, versus a year-ago profit of $5.7 billion, or $1.39 per share. Its adjusted earnings came in at $1.40 per share.
Its revenue dropped 1% to $24.1 billion, versus $24.4 billion. However, analysts were projecting earnings of $1.32 per share on revenue of $23.81billion. J.P. Morgan's mortgage originations tumbled 54% y/y to $23.3 billion, while investment banking net income slipped 57%.
Equities Trading UP
Shares of Intuitive Surgical (NASDAQ: ISRG) got a boost, shooting up 11.53 percent to $438.40 after the company issued upbeat Q4 revenue forecast.
VeriFone Systems (NYSE: PAY) shot up 5.76 percent to $28.99 after JP Morgan upgraded the stock from Neutral to Overweight.
Google (NASDAQ: GOOG) was also up, gaining 0.93 percent to $1,133.42 after the company announced its plans to acquire Nest Labs for $3.2 billion. Analysts at Wells Fargo upgraded Google from Market Perform to Outperform.
Equities Trading DOWN
Shares of GameStop (NYSE: GME) were down 17.23 percent to $37.51 after the company cut its profit outlook for the holiday quarter.
Wolverine World Wide (NYSE: WWW) tumbled 6.09 percent to $30.82 after the company issued weak revenue forecast for fiscal year 2013.
Stratasys (NASDAQ: SSYS) was down, falling 6.27 percent to $121.85 after the company issued downbeat FY14 earnings outlook.
In commodity news, oil traded up 0.41 percent to $92.16, while gold traded down 0.18 percent to $1,248.90. Silver traded down 0.17 percent Tuesday to $20.35, while copper fell 0.07 percent to $3.34.
European shares were mostly lower today. The Spanish Ibex Index fell 0.34 percent, while Italy's FTSE MIB Index declined 0.10 percent. Meanwhile, the German DAX dropped 0.17 percent and the French CAC 40 fell 0.13 percent while U.K. shares gained 0.05 percent.
The NFIB Small Business Optimism Index rose to 93.90 in December, versus a prior reading of 92.50. However, economists were expecting a reading of 93.10. The ICSC-Goldman Sachs store sales index dropped 1% in the week ended Saturday versus the earlier week.
US retail sales increased 0.2% in December, versus economists' estimates for a 0.1% gain. The import price index came in unchanged in December, while the export index climbed 0.4% in the month.
US business inventories rose 0.40% in November, versus economists' expectations for a 0.30% gain. The Treasury is set to auction 4-week bills.
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