US stocks fall amidst European rate cut fears, JP Morgan profit drop




    US stocks took a tumble today, breaking a 4 session rally, after JP Morgan Chase, the largest US bank by assets showed a decline 23% in profits. The market was also dampened by reports that ratings agency S&P might downgrade several euro nations for their continuing inability to fix their debt problems.

    JP Morgan Chase fell 3.3% after the announcement, while Bank of America, Morgan Stanley, and Citigroup all fell at 3.2%. Eastman Kodak, the maker of photography films, and cameras, fell 22% amidst news that the cash strapped company was in talks with Citigroup to provide enough financing to see it through bankruptcy.

    The Dow Jones Industrial Average was trading at 12,339.49 points down 1.05% from its opening 12,469.96 points, while S&P 500 Index was trading at 1,286.82 points after falling 0.67%. The NASDAQ Composite Index was down to 2,701.67 points after sliding 0.85%.

    European stocks fared no better, with EURO STOXX 50 down at 2,337.41 points sliding 0.36%,  while the FTSE 100 Index was trading at 5,627.13 points after falling 0.62%. The Deutsche Borse AG German Stock Index DAX was down at    6,140.22 points, reflecting a decline of 0.63%.

    Asian countries closed mixed today with the Nikkei 225 ending at 8,500.02 after gaining 1.36% over yesterday’s close. The Hong Kong Hang Seng Index was trading at 19,204.42 points after rising 0.57%. While the Shanghai Shenzhen CSI 300 Index was down at 2,394.33, reflecting a drop of 1.68%.

    All the sectoral indices were in the red. Basic material, industrial and utilities declining over 1%. Oil continued to fall, with a plunge of 0.78% today, while gold declined by 0.61%.