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Boeing leads Dow lower

FILE - In this May 11 2012 file phopeople stlobby JPMorgan Chase headquarters New York. JPMorgan Chase reported 55 percent

FILE - In this May 11, 2012 file photo, people stand in the lobby of JPMorgan Chase headquarters in New York. JPMorgan Chase reported a 55 percent jump in earnings for the last three months of 2012 as mortgage fees and other income surged. (AP Photo/Mark Lennihan, File)

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Updated: January 16, 2013 1:42PM



NEW YORK — More problems for Boeing’s 787 sent the aircraft maker’s stock down sharply early Wednesday, dragging the Dow Jones industrial average lower.

Japan’s two biggest airlines grounded all their Boeing 787s for safety checks Wednesday after one was forced to make an emergency landing. The plane, known as the Dreamliner, has been plagued by a series of problems this year, including a battery fire and fuel leaks. Boeing’s stock sank $2.51 to $74.43, a loss of 3 percent.

The Dow was down 26 points at 13,509 as of 12:07 EST on Wednesday.

The Standard & Poor’s 500 index fell less than one point to 1,472, while the Nasdaq composite edged up five points to 3,116.

Goldman Sachs and JPMorgan Chase, the country’s largest bank, rose after both posted quarterly results that trounced analysts’ estimates.

Harry Clark, chairman of Clark Capital Management in Philadelphia, described JPMorgan’s numbers as staggering. The bank’s earnings jumped 55 percent over the prior year.

“Their earnings are just ridiculously good,” Clark said. “It shows you that these giants can make money in any type of environment.”

Slightly smaller financial firms, such as Northern Trust and Bank of New York Mellon, reported weaker earnings and their stocks sank.

JPMorgan Chase edged up 7 cents to $46.42. The bank’s stunning results were offset by an internal review of a $6 billion trading loss on credit derivatives. JPMorgan’s board of directors criticized executives for failing to keep the board informed of potential problems and using unapproved models for measuring trading risks.

Goldman Sachs gained 3 percent. The investment bank’s profits nearly tripled in the fourth quarter of last year. Goldman’s bond underwriting business had its best year since the financial crisis, thanks to strong demand for fixed-income investments and companies lining up to borrow at historically cheap rates. Goldman’s stock climbed $3.84 to $139.44.

Analysts forecast that companies in the S&P 500 will report a 3.2 percent increase in fourth-quarter earnings. Financial firms and consumer-discretionary companies are expected to post the biggest growth, according to S&P Capital IQ.

The Labor Department said consumer prices were flat last month as gas prices sank. The December reading of the consumer price index capped a year of tame inflation. Consumer prices increased just 1.7 percent in 2012, down from 3 percent in 2011.

The report on consumer prices led traders to push up prices for Treasurys, knocking yields down. The yield on the 10-year Treasury note slipped to 1.81 percent. The yield, used to set mortgages and a wide variety of other loans, ended Tuesday at 1.84 percent.

Wendy’s rose 2.8 percent, or 14 cents, to $5.04. The hamburger chain, known for its Frosty shakes and square burgers, earnings topped Wall Street’s estimates, even as a key indicator of sales at North American restaurants dipped slightly.



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