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Dow loses magic touch

Friday, March 15, 2013 - 02:15

March 15 - Summary of business headlines: Dow fails to set record close for the first time in nine sessions; JP Morgan Chase under scrutiny; Boeing readies 787 return; Who's afraid of Samsung? Economy won't alter Fed strategy next week. Conway G. Gittens reports.

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The Dow breaks its longest winning streak since 1996 and you can pin all the blame on one company - JP Morgan Chase. Wall Street closed without setting a record for the first time in nine days as stocks finished lower across the board. But it was a week of modest gains for blue chips and the Nasdaq as well. JP Morgan Chase was under fire for two reasons. The bank was told by the Federal Reserve to fix the way it determines how much cash to dole out to shareholders. Goldman Sachs was told the same thing, by the way, as the Fed tries to make sure banks have enough capital to withstand another shock. The other reason - lawmakers delved into JP Morgan's $6 billion bad trade last year. Senators accuse the bank of taking risky bets and misleading investors. Former Chief Investment Officer Ina Drew refused to take the blame for what's become known as the London Whale. SOUNDBITE: INA DREW, FORMER CHIEF INVESTMENT OFFICER, JP MORGAN CHASE (ENGLISH) SAYING: "Some members of the London team failed to value positions properly and in good faith. They minimized reported and projected losses and hid from me important information regarding the truth risk of the book." Shares of JP Morgan down roughly 2 percent on the day. Boeing says it will be able to get the safety-plagued Dreamliner 787 back up in the air in weeks. Apple investors don't see the newly unveiled Samsung Galaxy S4 as a iPhone killer. A rise in both stocks helped limit market losses. On the economic front, industrial production bounces back, consumer sentiment tumbles to a more-than one-year low, and consumer inflation surges at its fastest pace since June 2009. Despite signs of economic strength, don't expect the Fed to alter its bond-buying strategy at the meeting this coming week, says Anthony Chan of JP Morgan. SOUNDBITE: ANTHONY CHAN, CHIEF ECONOMIST FOR PRIVATE WEALTH MANAGEMENT, JP MORGAN (ENGLISH) SAYING: "On the labor front, we really need to see a whole lot more progress than we've seen so far before the labor markets are going to reach the point where the Fed feels complacent enough to raise short-term interest rates." Finishing up with a look at Europe, stocks backed-off 4-1/2 year highs.

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Dow loses magic touch

Friday, March 15, 2013 - 02:15