* JPMorgan drops on Senate report, Fed findings
* S&P 500 hovers 4 points below record closing high
* Dow off 0.2 pct, S&P 500 off 0.1 pct, Nasdaq off 0.2 pct
By Leah Schnurr
NEW YORK, March 15 U.S. stocks dipped on Friday,
weighed by a decline in JPMorgan Chase after a one-two punch of
bad news for the bank, though the S&P 500 remained in sight of
The S&P 500 was roughly 4 points away from its record
closing high after failing to end above that level on Thursday.
Friday morning's dip also brought the Dow's 10-day winning
streak to an end. Still, investors could use the pause to
consolidate bets before pushing the market higher again, said
Cam Albright, director of asset allocation at Wilmington Trust
Investment Advisors, in Wilmington, Delaware.
"I don't think that one or two days' movement is really
going to change the underlying momentum of this market, which I
still think is pretty strong at this point," Albright said.
JPMorgan was the biggest drag on both the Dow and
S&P 500, falling 2 percent to $49.98.
The Federal Reserve told JPMorgan Chase & Co and
Goldman Sachs Group Inc that they must fix flaws in how
they determine capital payouts to shareholders, though it still
approved their plans for share buybacks and dividends.
A Senate report alleged that JPMorgan had ignored risks,
misled investors, fought with regulators and tried to work
around rules as it dealt with mushrooming losses in a
derivatives portfolio. A former top JPMorgan official told
lawmakers on Friday she was not to blame for the losses.
In contrast, Goldman shares recovered from early weakness to
gain 0.6 percent to $154.94. The stock of rival Bank of America
rose 3.2 percent to $12.50. The S&P financial sector
index edged up 0.1 percent.
The Dow Jones industrial average slipped 26.59
points, or 0.18 percent, to 14,512.39. The Standard & Poor's 500
Index edged down 2.15 points, or 0.14 percent, at
1,561.08. The Nasdaq Composite Index fell 6.38 points,
or 0.20 percent, to 3,252.55.
Market volatility may be increased due to 'quadruple
witching' - the quarterly settlement and expiration of four
different types of March equity futures and options contracts.
Expiration can lead to greater volume and volatility as players
adjust or exercise derivatives positions.
Data from Thomson Reuters' Lipper service showed investors
in U.S.-based funds poured $11.26 billion of new cash into stock
funds in the latest week, the most since late January.
A busy day of economic reports reinforced investors' view
that the economic recovery has momentum to it. Manufacturing
output bounced back in February, though the pace of
manufacturing growth in New York state cooled slightly in March
and consumer sentiment fell.
Consumer prices registered their biggest increase in nearly
four years as the cost of gasoline rose. But a smaller gain in
the core U.S. Consumer Price Index, which excludes volatile food
and energy prices, left the door open for the Federal Reserve to
continue its bond-buying program, which has contributed to the
stock market's rally.