This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stock Futures Tick Lower on JPMorgan Disappointment

Stocks in this article: ^DJI ^GSPC ^IXIC

NEW YORK ( TheStreet) -- U.S. stock futures were ticking slightly lower after a disappointing quarter from JPMorgan Chase (JPM).

Futures for the Dow Jones Industrial Average were down 26 points, or 25 points below fair value, at 12,387. Futures for the S&P 500 were down 4 points, or 3 points below fair value, at 1288. Futures for the Nasdaq were down 3 points, or 3 points below fair value, at 2376.

Shares of JPMorgan Chase (JPM) were dropping more than 3% in premarket trading after the company kicked off earnings for major U.S. banks on a downbeat note. The banking giant's net income declined 23% in the fourth quarter, as persistent weakness in trading and capital markets revenues, offset strength in loan growth. Fourth-quarter earnings came in at $3.7 billion, or 90 cents a share, about in line with estimates. However, revenue at $22.2 billion was down 17% from a year earlier and missed expectations for $22.99 billion, according to Thomson Reuters.

While the U.S. market was headed for losses at the open, European equities were gaining. Germany's DAX was up 0.41% while London's FTSE was trading about flat. Japan's Nikkei Average settled 1.36% higher, and Hong Kong's Hang Seng was up 0.57%.

A bond auction in Italy helped set a positive tone after the government sold 3 billion euros of bonds maturing in 2014 at a yield of 4.83%, down from 5.62% at a similar auction in the past.

This came on the heels of government debt sales in both Spain and Italy during the prior session in which borrowing costs also fell. Spain was able to sell twice the amount of bonds that it had planned, a signal that investor demand for its sovereign debt remains robust. Bonds sales in Italy on the whole have been comparatively softer.

Before the opening bell, the Commerce Department reported that the trade gap widened to $47.75 billion in November from $43.27 billion in October. Economists forecast a deficit of $45 billion, according to a poll by Thomson Reuters.

Import prices fell 0.1% in December, in line with estimates, after rising a revised 0.8% in November. Export prices dropped 0.5% compared to the 0.1% rise forecast.

At 9:55 a.m., the University of Michigan is expected to report that its consumer sentiment index for January rose to 71.5 from 69.9 in the prior month.

In other corporate news, Novartis (NVS), the Swiss drug maker, will cut almost 2,000 jobs in the U.S. this year because of the parent expiry of its best-selling hypertension drug Diovan. Novartis said Friday the job cuts also were necessary because of the failure of a clinical study into Tekturna, another hypertension drug. The company said it would record a first-quarter charge of $160 million. Novartis said the job cuts would save $450 million a year from 2013. Shares were down 1.4% to $55.94.

Delta (DAL), US Airways (LCC) and private-equity group TPG are separately considering making bids for AMR, the bankrupt parent of American Airlines, according to published reports. Delta has hired Blackstone as its financial adviser to assess a bid for American Airlines, a source told Reuters. TPG is looking for a strategic partner with ties to the airline industry to launch a bid, according to The Wall Street Journal.

The Justice Department may get involved in a Securities and Exchange Commission investigation of Diamond Foods' (DMND) payments to walnut growers. According to The Wall Street Journal, federal prosecutors are looking into potential criminal fraud in the company's financial practices. The news could potentially threaten Diamond Foods' deal with Procter & Gamble (PG) to acquire the Pringles brand of potato chips. Shares were plunging 11.4% to $29.36.

February oil futures were down 18 cents to $98.92 a barrel. In other commodities, February gold futures were down $9.60 to $1638.10 an ounce.

The dollar index was up 0.17%. The benchmark 10-year Treasury was up 8/32, diluting the yield to 1.9%.

-- Written by Chao Deng in New York.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs