D&D Note (7-13-2012) ~ Stocks Get a JPMorgan Boost, Despite The $5.8 Billion Trading Loss By The Bank

D&D Note (7-13-2012)

JPMorgan Chase (JPM) reported earnings today, and despite their $5.8 Billion trading loss, the bank released better-than-expected earnings for the second quarter. Shares rose almost 6% on the day. The JPMorgan earnings helped boost all most all stocks on the day including the other major U.S. banks.

The slowdown in China shouldn’t surprise investors, rather confirm what we already know and have known for some time. The second quarter GDP for the People’s Republic grew at 7.6%. While this does represent the lowest rate in three years and down from 8.1% in the previous quarter, most any other country in the world would be glad to have a GDP growth rate of above 7%. The third quarter should see a rebound in GDP for China and should end the year somewhere between 7 – 8% which will be just enough to keep the world economic machine moving forward.

Investors also cheered the dovish comments by the Atlanta FED President Dennis Lockhart, saying that further stimulus could be coming down the line.

One stock that was down today is Facebook (FB). Shares have now fallen four days in a row. Today the stock was down -0.36% at $30.70 a share. Once the stock falls below $30 it will become much more attractive, keeping in mind a real pricing of the stock on fundamentals would put it around $19 a share.

The DOW (INDU) gained 204 point at 1.62%. The S&P (SPX) rose 22 points at 1.65% putting the index at 1,356.77. The Nasdaq (COMP) added 42 points at 1.48%.

Oil rose $1.02 to $87.10 a barrel.

Gold rose $26.70 to close at $1,592.00 an ounce.

The 10-Year Note fell on this risk on day pushing the yield up to 1.50% from 1.48% yesterday.

Next week D&D will be tracking closely the following companies that report earnings:

Citigroup (C ) – July 16th

Goldman Sachs (GS) – July 17th

CSX (CSX) – July 17th

Intel (INTC) – July 17th

Yahoo! (YHOO) – July 17th

Abbott Labs (ABT) – July 18th

Bank Of America (BAC) – July 18th

American Express (AXP) – July 18th

F5 Networks (FFIV) – July 18th

IBM (IBM) – July 18th

Qualcomm (QCOM) – July 18th

Skyworks (SWKS) – July 18th

YUM! Brands (YUM) – July 18th

Fifth Third (FITB) – July 19th

Freeport-McMoRan (FCX) – July 19th

Huntington Banc (HBAN) – July 19th

Morgan Stanley (MS) – July 19th

Nokia (NOK) – July 19th

Philip Morris International (PM) – July 19th

Taiwan Semiconductors (TSM) – July 19th

Union Pacific (UNP) – July 19th

Verizon (VZ) – July 19th

Advanced Micro Devices (AMD) – July 19th

Chipotle Mexican Grill (CMG) – July 19th

Google (GOOG) – July 19th

Microsoft (MSFT) – July 19th

First Horizon (FHN) – July 20th

General Electric (GE) – July 20th

Schlumberger (SLB) – July 20th

SunTrust Banks (STI) – July 20th