Stocks hit by broad selloff
Source: | Filed in
Market News | 
Subscribe to Savvy Investor via RSS
1/15/10NEW YORK (CNNMoney.com)
-Bank stocks led a broader selloff Friday morning as investors dumped shares of JPMorgan Chase and Intel despite better-than-expected earnings reports from both companies.
A mild reading on inflation, a mostly in-line reading on manufacturing and a better-than-expected report on consumer sentiment were also in the mix.
The Dow Jones industrial average (INDU) lost 109 points, or 1% nearly 90 minutes into the session. The S&P 500 index (SPX) lost 12 points, or 1%. The Nasdaq composite (COMP) lost 21 points or 0.9%.
Stocks managed gains Thursday, with the Dow and the S&P 500 closing at the highest point since Oct. 1, 2008 and the Nasdaq ending at the highest point since Sept. 3, 2008.
But gains so far this year have been slow, following last year’s massive runup. Stocks are likely to drift as investors wait for more fourth-quarter profit and economic reports.
Earnings: Financial services firm JPMorgan Chase (JPM, Fortune 500) reported earnings per share of 75 cents, which is better than the 61 cents expected by analysts, according to a consensus from Thomson Reuters. Revenue of $26.8 billion was also better than the expected $26 billion.
After U.S. markets closed Thursday, Intel (INTC, Fortune 500) issued upbeat quarterly financial results. The chipmaker’s earnings and sales topped Wall Street’s estimates.
Economy: The Consumer Price Index, a key inflation reading, showed a less-than-expected increase of 0.1% for December. Economists surveyed by Briefing.com expected an increase of 0.2%, compared to a rise of 0.4% the prior month.
The core CPI for December also rose 0.1%.
A report on industrial production and capacity is also due out Friday, as is the University of Michigan’s report on consumer sentiment.
World markets: Asian shares finished mixed. Japan’s Nikkei ended in positive territory while the Hang Seng in Hong Kong fell. European stock indexes were lower in midday trading, losing their earlier momentum.
Money and bonds: The dollar was higher against all major international currencies except the yen. The price of the 10-year note rose, pushing down the yield to 3.7%.
Gold and oil: The price of gold fell $10 to $1,133 per ounce. The price of oil fell 54 cents per barrel to $78.45.
