Stocks Opened Lower on JPMorgan Loss

U.S. stocks opened lower on Friday, with large banks leading the losses after J.P. Morgan Chase & Co. (NYSE:JPM) reported a $2 billion trading loss. The Dow Jones Industrial Average lately fell 51.69 points, or 0.40%, to 12,803.35. The S&P 500 Index shed 4.01 points, or 0.30%, to 1,353.98. The Nasdaq Composite was up 4.70 points, or 0.16%, to 2,938.34.

JPMorgan Chase’s $2 billion trading loss, which was disclosed on Thursday, could give supporters of tighter industry regulation a huge new piece of ammunition as they fight a last-ditch battle with the banks over new federal rules that may redefine how banks do business.

Producer prices unexpectedly fell in April as energy costs dropped by the most in six months, a sign of easing inflation pressures that could give the Federal Reserve more room to help the economy should growth weaken. The Labor Department said on Friday its seasonally adjusted producer price index dropped 0.2 percent last month. That was the first drop of the year and the biggest decline since October.

China’s industrial production in April grew at its slowest pace in nearly three years, which along with poor trade numbers on Thursday, suggest the world’s No. 2 economy continues to slow down after a weak first-quarter performance.

Oil fell below $112 a barrel on Friday after a weak reading of industrial growth in China sparked worries about demand growth from the world’s number two oil consumer. By 08.42 a.m. EDT, Brent June futures lost 92 cents to $111.80 a barrel.

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