Trading on the NYSEMIKE SEGAR
Stocks closed the turbulent week on a down note, with a massive trading loss from JPMorgan Chase & Co. dragging down U.S. financials.
The Dow Jones industrial average closed at 12,820.60, down 34.44 points or 0.3 per cent. The broader S&P 500 closed at 1353.39, down 4.60 points or 0.3 per cent. In Canada, the S&P/TSX composite index closed at 11,694.67, down 41.50 points or 0.4 per cent.
JPMorgan plunged 9.3 per cent after its chief executive announced on Thursday evening that the bank had lost $2-billion (U.S.) trading synthetic credit securities, raising concerns that U.S. banks have learned little from the sort of debacles that ensnared the sector during the 2008-2009 financial crisis.
Other U.S. financial names were caught in the selloff: Bank of America Corp. fell 2 per cent and Citigroup Inc. fell 4.2 per cent.
The declines overshadowed some upbeat economic news. The University of Michigan's consumer confidence index rose to a 52-month high of 77.8, with economists expecting a decline. In Canada, the economy generated 58,000 jobs in April, which was also well above expectations.
Commodities continued their losing ways. Crude oil fell to $96.13 a barrel, down 95 cent – marking its seventh decline in eight trading days. Gold fell to $1,584 an ounce, down $11.50.
Among Canadian commodity producers, Suncor Energy Inc. fell 1.9 per cent, Canadian Oil Sands Ltd. fell 0.8 per cent and Barrick Gold Corp. fell 1.9 per cent.
At least Canadian financial stocks withstood the decline among U.S. financials: Royal Bank of Canada rose 0.1 per cent and Toronto-Dominion Bank rose 0.4 per cent.
David Berman