Wall Street shares were higher Wednesday as JPMorgan Chase became the first major bank to release first quarter results and reported earnings that beat expectations. þþJPMorgan said net income jumped 67 percent to $5.56 billion, or $1.28 a share. Analysts expected $1.16 in earnings a share. Strong results from its investment banking and trading businesses helped offset losses from the retail bank, which set aside an additional $650 million to cover potential legal claims and bad loans. The bank’s results got a lift from its credit card group, where the reversal of loan-loss provisions added $2 billion to the bottom line. Revenue, however, fell 8 percent, to $25.8 billion. þþThe government also reported that retail sales rose 0.4 percent in March, down from 1 percent growth in February. Much of the increase in consumer spending went to higher gasoline prices. þþIn early trading, the Dow Jones industrial average are up 29.28 points, or 0.24 percent. The broader Standard & Poor’s 500-stock index added 2.17, or 0.17 percent, and the technology heavy Nasdaq gained 16.06, or 0.59 percent. þþBank shares, which had been higher, turned lower as trading went on. Indexes were being powered by oil and gas companies, as well as utility and technology shares. The S.&P. utility sector was up 0.69 percent while the energy sector rose 0.3 percent. þþThe Dow on Tuesday fell to its biggest drop since March 16 after Japan raised the severity of its nuclear crisis and the aluminum maker, Alcoa, reported disappointing revenue growth. þþThe Fed’s monthly report, known as the beige book, could move the markets if there are indications that inflationary pressures are mounting. Any signs that the Fed will take a more hawkish stance could weigh on stocks, which have enjoyed big gains over the past two years as borrowing costs were slashed to record lows and billions of dollars were pumped through the United States financial markets. þþ“It’s felt the central bank’s anecdotal roundup will be given more significance than usual given the serious concerns about inflationary pressure on the markets,” a sales trader at IG Index, Will Hedden, said. “Any suggestion that price increases are being passed through could trigger a reversal.” þþLater Wednesday, President Obama will outline how he hopes to control the nation’s growing debt. Investors have been worried about how the market for Treasury bonds and notes will react as the country approaches its limit on debt. þþIn Europe, indexes recovered most of the hefty losses from the previous day, when investors fretted about the nuclear crisis in Japan. The FTSE 100 in London and Frankfurt’s DAX were both up 1.2 percent. The CAC 40 in Paris was 1.1 percent higher. þþEarlier in Asia, Tokyo’s Nikkei 225 rose 0.9 percent to 9,641.18 despite concerns about power shortages after the March 11 earthquake and tsunami and the Japanese government’s downgrade of growth forecasts. Hong Kong’s Hang Seng rose 0.7 percent to 24,135.03. þþIn mainland China, the Shanghai Composite Index rose 1 percent to 3,050.40, while the Shenzhen Composite Index gained 1.1 percent to 1,286.71. þþIn the oil markets, prices steadied after dramatic declines in the last couple of days as investors fretted over high energy and commodity costs. þþBenchmark crude for May delivery was up 61 cents at $106.86 a barrel in New York trading. In London, Brent crude for May delivery was up 31 cents to $121.74. þþIn the currency markets, the euro remained near $1.45 in part because of expectations of further interest rate increases from the European Central Bank despite the debt difficulties afflicting several countries. þþMany analysts think the euro’s rally has further legs, provided the Fed does not change course anytime soon. þþ“The divergent policy philosophy between the two central banks overshadows any economic data,” said Kit Juckes, head of foreign exchange at Société Générale. þþ
Source: NY Times
