- Dow Jones Industrial Average up 203.82 (+1.62%) to 12,777.09
- S&P 500 up 22.01 (+1.65%) to 1,356.77
- NASDAQ Composite up 42.28 (+1.48%) to 2,908.47
GLOBAL SENTIMENT
- Hang Seng Index up 0.35%
- Shanghai China Composite Index up 0.02%
- FTSE 100 Index up 1.03%
Stocks snapped a six-day losing streak, rallying Friday after mostly positive quarterly results from financial heavyweights JPMorgan Chase & Co. (JPM) and Wells Fargo & Co. (WFC) helped overcome weaker consumer sentiment. Other economic data today was supportive, with domestic wholesale prices rising less than expected last month, coupled with Q2 GDP in China falling to a three-year low, but still managing to meet expectations. All 10 industry sectors in the S&P 500 were at least 1% higher, including hefty gains for commodity-related stocks following the 7.6% rise in Q2 Chinese gross domestic product.
JPMorgan rose over 5% today after reporting a $5 billion profit in its Q2, overcoming a $4.4 billion loss in its synthetic credit portfolio. Per share earnings were $1.21, down from $1.27 a share in the year-ago quarter. Revenue was $22.89 billion, down from $27.41 billion last year. The analyst consensus was $0.77 per share in earnings on $21.4 billion in revenue, according to Capital IQ.
JPM Chief Executive Jamie Dimon said the bank still could post record earnings this year, adding he hopes it also can resume its stock buyback program by December.
Separately, the bank said it will restate its Q1 results, reducing net income by $459 million to reflect certain positions in its synthetic credit portfolio. The restatement will have no impact on total earnings or revenues for JPM year to date.
Wells Fargo rose over 3% today after posting Q2 earnings of $0.82 a share, up 17% from the year-ago period and beating the analyst consensus of $0.81 per share. Revenue rose 0.4% to $21.3 billion, trailing the Street view by $100 million.
In economic news, consumer sentiment fell to its lowest level since December, with job concerns hitting results, according to data released today by the University of Michigan and Thomson Reuters. The consumer-sentiment index fell to a preliminary July reading of 72 from 73.2 in June. Economists polled by MarketWatch had expected a July reading of 73.
Additionally, U.S. wholesale prices rose slightly in June, climbing only 0.1% as higher costs of food, trucks and appliances offset another decline in energy costs, the Labor Department said today. Economists had predicted a 0.2% decline.
China's economy slowed to 7.6% growth in Q2, its slowest pace in over three years, but matching expert opinion. The National Bureau of Statistics also reported 9.5% growth in industrial production during June, 0.1% below May's 9.6% expansion. Retail sales rose 13.7% last month, down 0.1% from the prior month. Sales of home appliances at large retailers were the bright spots, rising 9.5% year over year and rebounding from a 0.5% rise in May.
Commodities also ended higher today. Crude oil for August delivery settled $1.02 higher at $87.10 a barrel, aided by new U.S. sanctions on Iran export imposed late yesterday. August natural gas finished flat at $2.88 per 1 million BTU. August natural gas closed flat at $2.88 per 1 million BTU. August gold climbed $26.70, settling at $1,591.60 an ounce.
UPSIDE MOVERS
(+) TEAR, Secures commitments from two investors to purchase 2.5 million shares priced at $3.17 each and generating about $7.9 million in overall proceeds
(+) SOL, Raises FY12 shipment guidance to 2.2 gigawatts to 2.4 gigawatts, up 400 megawatts from prior forecasts
(+) FEIM, Fiscal Q4 revenue climbs 7.4% to $17.153 million, offsetting decline in net income to $0.49 a share, down $0.06 a share from the same three months ending April 30, 2011
(+) NWY, Expects to exceed previous Q2 guidance, with operating loss now seen shrinking to $5 million to $7 million compared with $15.1 million loss in year-ago quarter
(+) PLFE, Insurer receives $14-a-share buyout offer from Athene Holding Ltd.; the $415-million deal is expected to close in Q4, pending shareholder and regulatory approval
DOWNSIDE MOVERS
(-) AMPE, (-10.5%) Prices offering of 4.6 million shares at $3.25 per share - 13% below Thursday's closing price; the $15 million deal is expected to close July 18
(-) LXK, Printer and imaging company cuts its Q2 earnings and revenue outlook
(-) BPI, Reportedly being monitored by a higher education commission to confirm the for-profit university company meets accreditation criteria
(-) IGTE, Reports Q2 EPS of $0.28, missing estimates by a penny; revenue was $268 million, largely in line with the $268.64 million consensus
(-) GMCR, Stifel Nicolaus trims full-year earnings estimate by about 20%, citing decelerating pricing and increasing promotion costs
