JPM London Losses AT $4.4 Billion: Market Happenings for Friday, July 13, 2012

Markets are up this morning. Gainers include BMS (+3.16%), AFL, FTR, JPM and KMI while losers include LXK (-15.63%), XRX, DF, DISCA and HPQ.

The Market

JPMorgan Chase (JPM) reported earnings of $5 billion on revenue of $22.9 billion. Its shares were up +3.7% even after the bank said its pretax trading loss from risky derivatives totals $4.4 billion so far this year.

Overall, JPMorgan earned $1.21 per share for the second quarter, which covers April through June and includes the bank’s disclosure of the trading loss on May 10.

In a separate filing with the Securities and Exchange Commission, JPMorgan stated it recently discovered insiders possibly hid significant data, “seeking to avoid showing the full amount of the losses being incurred in the portfolio.” The bank restated its first-quarter results, lowering net income by $459 million.

Figures released on China’s economy added fuel to the notion of a global slowdown. In the second quarter, GDP in China grew at an annual pace of 7.6%, the lowest in three years and a deceleration from the 8.1% growth rate it saw the previous quarter.

UPDATE: JPM London losses are at $6 Billion which includes $4.4 Billion for the 2nd quarter and $1.6 billion for the 1st quarter.

Earnings Reports

Earnings reports: WFC-Wells Fargo (Consensus $0.81), JPM-JPMorgan Chase (0.76), WBS-Webster Financial (0.44).

Financial Calendar

0830 ET June PPI expected -0.4% m/m and +0.2% y/y, May -1.0% m/m and +0.7% y/y. June core PPI expected +0.2% m/m and +2.6% y/y, May +0.2% m/m and +2.7% y/y.

0955 ET Early-July U.S. consumer confidence (University of Michigan) expected +0.3 to 73.5, June -6.1 to 73.2.

1320 ET Fed’s Lockhart speaks on U.S. economy in Jackson, MS.

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