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U.S. stocks rose, rebounding from a slump driven by JPMorgan Chase & Co.’s $2 billion trading loss, after an unexpected increase in a gauge of consumer confidence.
Equities rebounded after data showed consumer confidence rose in May to the highest level in four years, indicating falling fuel costs are helping households look beyond a retreat in stocks and weaker employment growth. Earlier declines were led by JPMorgan. The firm’s chief investment office, run by Ina Drew, 55, took flawed positions on synthetic credit securities that remain volatile and may cost an additional $1 billion this quarter or next, Dimon told analysts yesterday.
Nine out of 10 groups in the S&P 500 rose today. Technology companies, which comprise 20 percent of the benchmark measure, added 0.6 percent, led by some of the world’s largest companies. Intel Corp. (INTC) advanced 2.4 percent, the most in the Dow, to $27.90. Microsoft Corp. (MSFT) increased 1.9 percent to $31.31.
A measure of diversified financial institutions in the S&P 500 tumbled 2 percent, for the biggest decline among 24 groups. JPMorgan (JPM) slumped 7.5 percent to $37.70. Citigroup retreated 3.2 percent to $29.69. Goldman Sachs slipped 2.5 percent to $103.64. Morgan Stanley (MS) slumped 2.7 percent to $15.18. Bank of America Corp. (BAC) rose 0.2 percent to $7.72, after falling as much as 3.8 percent earlier today.
Nvidia surged 8.6 percent to $13.49. Revenue for the period ending in July will reach $990 million to $1.05 billion, the Santa Clara, California-based company said today in a statement. Analysts had estimated $976.3 million.
Bed Bath & Beyond Inc. gained 4.8 percent to $72.02. The company was raised to the equivalent of buy at Credit Suisse Group AG. The share-price estimate is $91.
Nordstrom Inc. dropped 2.8 percent to $52.02. The U.S. chain with more than 100 namesake department stores posted first-quarter profit that trailed analysts’ estimates as expenses for e-commerce investments increased.
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