SEC Probe on JPMorgan Chase & Co. Leads Markets Lower

by Zagros on November 1, 2020

SEC Probe on JPMorgan Chase & Co. Leads Markets Lower

FOREX Capital Markets LLC    ”DailyFX ”
U.S. Markets closed in negative territory, erasing an earlier rally, as financial companies turned lower following a report that  JPMorgan Chase & Co.  is being probed over its dealings in mortgage securities. Investors have a fresh memory of how a similar probe on Goldman Sachs affected the share price and reputation of that organization, and there is no way of telling which financial firm is next.

U.S. Session Key Developments

US and Chinese Manufacturing Data Beat Expectations   JPMorgan Chase & Co.  Drives Down Entire Financial Sector

SEC Probe on  JPMorgan Chase & Co.  Leads Markets Lower

U.S. Markets closed in negative territory, erasing an earlier rally, as financial companies turned lower following a report that  JPMorgan Chase & Co.  is being probed over its dealings in mortgage securities. Investors have a fresh memory of how a similar probe on Goldman Sachs affected the share price and reputation of that organization, and there is no way of telling which financial firm is next. Although markets did end lower, they rallied earlier as the S&P added to its best September and October performance in 12 years. Early gains were buoyed by better than expected manufacturing data from  the United States  and  China . Overall, investors are still mulling a busy week ahead in the financial industry. Throughout this week, the public will find out who will take control of congress, what the Federal Reserve will do to spur the economy, and how the unemployment rate has changed from last month. Many investors have decided to stay on the side line until they hear these crucial reports.

DJIA 30 / 11,124.54 / +6.13 / +0.06%

The DJIA pared early gains after being higher for the majority of the trading session. The benchmark gauge was higher as better than expected economic reports lifted stocks, but ended lower after reports of the  JPMorgan Chase & Co.  SEC  probe were released.  JPMorgan Chase  fell as low as  $37.10  and was the largest drag on the S&P 500 Financials Index.  The Securities and Exchange Commission  is probing whether the bank improperly allowed hedge fund  Magnetar Capital  to choose the loans backing a  $1.1 billion  mortgage bond in 2007. The probe also caused  Citigroup  and Goldman Sachs to close significantly lower at the end of the trading session on Monday.

S&P 500  / 1,184.34 / +1.10 / +0.09%

The  S&P 500  closed lower at the end of the day as the financials sector led the decline.  Baker Hughes  climbed 3.7 percent after the company announced that third quarter earnings soared after a seasonal recovery in  Canada  and the April acquisition of BJ Services. Andarko Petroleum rose 1.1 percent ahead of its earnings report after the markets close.  Ambac Financial Group  plummeted 42 percent as the bond insurer warned that its board declined to make an interest payment and said it is negotiating plans for a prepackaged bankruptcy proceeding with senior debt holders. EXCO Resources surged 30 percent after CEO  Douglas Miller  offered to buy the company, valuing it at about 4.4 billion.

NASDAQ / 2,504.84 / -2.57 / -0.10%

The Nasdaq Composite Index experienced the steepest decline among the three major US benchmark gauges.  Fortinet  rose 6.3 percent after  Bloomberg News  reported late Friday that  International Business Machines  has approached the network-security systems maker about a possible takeover. Trucking company  YRC Worldwide  surged 15 perxcent after members of the teamsters union votd in favor of ratifying the continuation of concessions wage and pension reductions, along with new work rules that JPM says gives YRC additional flexibility.

Source http://bit.ly/9QAI2P

tradingtipsnow.com,
We Separate The News From The Noise.

Leave a Comment

Previous post:

Next post:

Get Adobe Flash playerPlugin by wpburn.com wordpress themes