JPMorgan Chase's derivatives trading blunder will weigh on financial stocks Friday and could be a negative for markets as traders sort out the impact.
Markets are also watching Europe, where Greece continues to try to form a government and Spain will announce bank reform, which may show its financial institutions in need more capital. Spain agreed to nationalize troubled Bankia earlier in the week.
On the data front, there is little, but PPI producer inflation data is at 8:30 a.m. and consumer sentiment is released at 9:55 a.m. Investors will be interested in China’s data, released overnight on retail sales, industrial production and inflation.
But JPMorgan , which suffered a major black eye, will be a big focus after it revealed after the market close Thursday that it suffered $2 billion of derivatives trading losses in the last six weeks and could be subject to another $1 billion in losses. Shares of JPMorgan, viewed as the best of breed bank stock, fell more than 6.5 percent afterhours, and other major banks fell with it.
Stocks had rebounded slightly Thursday , with the Dow 19 points higher at 12,855, in its first up day in seven. The S&P 500 was up 3 at 1,357, but Nasdaq was down 1 at 2,933. Stock futures fell after the JPMorgan news.Page 1 of 4 | Next Page