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Stock futures point lower after JPMorgan report

Stock futures point lower after JPMorgan report

Wall Street appeared ready to extend its losses Thursday, even after investors got a small dose of good news when JPMorgan Chase & Co. reported better-than-expected fourth-quarter earnings.
The huge banking company said it earned $702 million, or 7 cents per share, in the October-December quarter. Analysts had expected the company to break even.
Still, the results appeared not enough to ease investors' concerns about the financial sector. JPMorgan said it increased its reserves to cover potential loan losses by $4.1 billion, and Chief Executive Jamie Dimon said higher loan losses are likely if the economy deteriorates further.
JPMorgan is the first big U.S. bank to release fourth-quarter earnings, and analysts and investors looking at it for signs of how the rest of the industry may be faring. But the bank which bought failing Bear Stearns Cos. and Washington Mutual Inc. last year, is viewed as one of the stronger players in the industry, so results from other big banks could prove even worse.
Investors, who have been selling stocks for much of the new year, are likely to remain on edge Thursday ahead of an earnings report from Intel Corp. and a batch of economic readings.
Intel, the world's largest maker of computer chips, has already warned investors that its fourth-quarter revenue will fall short of its initial estimates. The market is hoping to gain some sense of the company's outlook for the current year.
Meanwhile, the Labor Department is expected to say that new claims for unemployment benefits rose last week after two weeks of declines. And economists are expecting the Labor Department's Producer Price Index, which measures the costs of goods before they reach consumers, to show a drop of 2 percent in December, a sign of waning demand. Both reports will be released at 8:30 a.m. Eastern time (1330 GMT).
Dow Jones industrial average futures fell 65, or 0.80 percent, to 8,094. Standard & Poor's 500 index futures dipped 3.80, or 0.45 percent, to 836.00, while Nasdaq 100 index futures fell 17, or 1.46 percent, to 1,148.50.
Investors' late 2008 enthusiasm has been sapped by increasingly gloomy outlooks for companies from banks to retailers to energy producers. On Wednesday, a worse-than-expected report on retail sales and growing concerns about the financial sector sent the Dow down nearly 250 points, and left the other major indexes with a loss of 3 percent. The Dow has now fallen for six straight sessions.
Bond prices were mixed early Thursday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, slipped to 2.17 percent from 2.20 percent late Wednesday. The yield on the three-month T-bill, considered one of the safest investments, was unchanged from late Wednesday at 0.10 percent.
The dollar was mixed against other major currencies early Thursday, while gold prices rose.
Light, sweet crude rose 19 cents to $37.47 a barrel in electronic premarket trading on the New York Mercantile Exchange.
Overseas, Japan's Nikkei stock average dropped 4.92 percent and Hong Kong's Hang Seng index tumbled 3.37 percent. In afternoon trading, Britain's FTSE 100 was down 0.37 percent, Germany's DAX index fell 0.44 percent, and France's CAC-40 fell 0.45 percent.
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Updated : 2021-06-18 07:47 GMT+08:00