USA: U.S. stocks fall after recent run up on Fed stimulus news. JPMorgan Chase will pay approximately 920 million dollars (USD) in fines for Whale derivatives probes.

Record ID: 187274

  • Title: USA: U.S. stocks fall after recent run up on Fed stimulus news. JPMorgan Chase will pay approximately 920 million dollars (USD) in fines for Whale derivatives probes.
  • Date: 19th September 2013
  • Summary: NEW YORK CITY, NEW YORK, UNITED STATES (SEPTEMBER 19, 2013) (REUTERS) JPMORGAN CHASE SIGN OUTSIDE BUILDING JPMORGAN CHASE BUILDING VARIOUS OF JPMORGAN CHASE SIGN DOORWAY TO JPMORGAN CHASE BUILDING JPMORGAN CHASE SIGN OUTSIDE BUILDING
  • Embargoed: 4th October 2013 13:00
  • Keywords:
  • Location: Usa
  • Country: USA
  • Topics: Business,Economy
  • Reuters ID: LVAZ9MO71MY6YD3MCDYFZTNW1SP
  • Story Text: U.S. stocks retreated slightly on Thursday (September 19) as investors paused after the Federal Reserve's decision to keep its stimulus intact sparked a rally that lifted the Dow and S&P 500 to record highs.
    Major U.S. stock indexes oscillated between modest gains and losses on the heels of Wednesday's rally, with the S&P showing a swing of less than 10 points between the high and low of the session.
    Many market participants had expected the Fed to announce it would begin to trim its stimulus, but the central bank instead said it would continue buying $85 billion (USD) in bonds every month. The program has been instrumental in lifting the benchmark S&P index 20 percent this year while keeping Treasuries yields under pressure.
    The Fed said it wants more evidence of solid economic growth before beginning to withdraw its stimulus. Data on Thursday showed factory activity in the U.S. mid-Atlantic region increased by the most in more than two years and firms' optimism about the future hit a 10-year high.
    A Reuters poll of 17 primary bond dealers on Wednesday found that nine were now looking for the U.S. central bank to trim its bond purchases in December, but most said their forecasts were very far from certain. FED/R News that the Fed would delay winding down its stimulus until it had more evidence of solid economic growth boosted global equity markets on Thursday, especially emerging markets, as investors returned to riskier assets.
    The Dow Jones industrial average fell 40.39 points or 0.26 percent, to 15,636.55, the S&P 500 lost 3.18 points or 0.18 percent, to 1,722.34 and the Nasdaq Composite added 5.743 points or 0.15 percent, to 3,789.384.
    The S&P hit 1,729.86, a record intraday high. The broad benchmark and the 30-stock Dow industrials closed at record highs Wednesday, while the Nasdaq Composite closed at its highest in 13 years.
    JPMorgan Chase & Co, fell 1.2 percent to $52.75 after the biggest U.S. bank agreed to pay approximately $920 million in penalties to regulators in two countries to settle some of its potential liabilities from its $6.2-billion "London Whale" derivatives loss last year, according to terms made public on Thursday.
    The penalties include $300 million to the U.S. Office of the Comptroller of the Currency, $200 million to Federal Reserve, $200 million to the U.S. Securities and Exchange Commission and 137.6 million pounds ($219.74 million) to the United Kingdom's Financial Conduct Authority.
    The regulators' citations focus on failures in risk management and financial reporting systems. JPMorgan was also cited for failing to tell its board of directors and regulators about deficiencies in its risk management systems that had been identified by management.
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