Midday movers: JPMorgan, Wells Fargo, Lexmark
Stocks are higher as investors' worst fears for JPMorgan and China fail to materialize.
Better-than-expected earnings reports from JPMorgan (JPM), as well as Wells Fargo (WFC), kick-started the second-quarter earnings season, one in which investors were more cautious than they have been in recent years.
JPMorgan took a $4.4 billion second-quarter charge on its London CIO operations and restated its first-quarter results lower based on the losses associated with the "London Whale." The bank's CFO Doug Braunstein pegged the trading loss through Thursday at $5.8 billion, which may have been less than some expected, and the bank said its CIO synthetic credit group has been closed down and all of its London CIO managers have been let go.
Investors responded positively to the results and the disclosures, sending shares of the Dow component up 6%.
Wells Fargo, which also reported second-quarter results, saw its profits rise 17% on the strength of heavy refinance activity and its shares rose 3% near noon.
Among the notable gainers Friday are Presidential Life (PLFE), up over 36%, on news it will be acquired by Athene Annuity for $14 per share, and Kinross Gold (KGC), up more than 6%, as takeover speculation circulated, possibly fueled by an article in Canada's Globe and Mail.
Among Friday's noteworthy market losers are Bridgepoint Education (BPI), down over 26%, after disclosing one of the accreditors for its Ashford University is requiring a report on its accreditation requirements, and Lexmark (LXK), down nearly 15%, after the company reduced its second-quarter earnings per share and revenue outlook.
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A light news day combined with heavy technicals weighed on the market.
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