Stocks to Watch: JPMorgan, Arena (Update 1)

NEW YORK -- JPMorgan Chase ( JPM) recorded a $2 billion mark-to-market loss in its synthetic credit portfolio since the end of the first quarter, the bank said Thursday.

CEO Jamie Dimon called the trade "flawed, poorly reviewed, poorly executed" and said it reflected "sloppiness" and " bad judgment."

In a conference call Thursday, Dimon said the bank's Chief Investment Office suffered a trading loss of $2 billion in its synthetic credit portfolio, offset by a $1 billion securities gain, as a strategy to re-hedge its portfolio backfired.

Shares of JPMorgan fell 6.73% in premarket trading Friday to $38.

Other bank stocks were also affected by the news. Citigroup ( C) shares dropped 2.61% to $29.85; Morgan Stanley ( MS) shares lost 2.82% to $15.16; shares of Goldman Sachs ( GS) fell 2.32% to $103.85; Bank of America ( BAC) dropped 2.47% to $47.51; shares of Wells Fargo ( WFC) declined 1.9% to 432.56.


Arena Pharmaceuticals ( ARNA) said Thursday Food and Drug Administration advisers recommended approval of the company's diet drug lorcaserin.

Arena said it's working with the agency as it finishes its review. A final decision from the FDA could be made June 27.

Lorcaserin could be the first new prescription diet drug in over a decade in the U.S.

Shares of Arena Pharmaceuticals skyrocketed 96.72% to $7.20 in premarket trading Friday.

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Nvidia ( NVDA), the graphics chipmaker, is scheduled to post first-quarter results Friday.

Analysts forecast profit of 10 cents a share in the April-ended period on revenue of $916.2 million.

Shares of Nvidia ticked down 7 cents, or 0.56%, in premarket trading Friday to $12.35.

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Other companies reporting earnings on Friday include Cache ( CACH) and ReneSola ( SOL).

Cache reported a first-quarter loss of $1.2 million, or 9 cents a share, wider than the year-earlier loss of $772,000, or 6 cents a share.

Analysts, on average, expected a loss of 9 cents a share.

ReneSola reported first-quarter a loss of $40.2 million, or 23 cents a share, a reversal from year-earlier earnings of $43.3 million, or 24 cents a share.

On average, analysts were expecting earnings of 31 cents a share.

-- Written by Joseph Woelfel and Alexandra Zendrian

>To contact the writer of this article, click here: Joseph Woelfel

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