S&P 500 lower for the week on renewed economic concerns

By IBTimes Staff Reporter | January 15 2010 7:49 PM

Despite better than expected JPMorgan earnings, the S&P 500 index dropped 12.43 points, or -1.08%, to trade at 1136.03 after weak economic data on the retail sector.

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For its retail financial services business, JPMorgan reported a credit cost of $4 billion, partly on higher delinquency and foreclosure costs.

It also reported drops in average deposits and credit card sales. The University of Michigan Consumer Sentiment index rose less than expected later in the trading session.

Friday’s loss took the S&P into negative territory for the week, down 9.93 points from Monday’s open.

The S&P edged up on Monday this week ahead of earnings season and dropped over 7 points on Tuesday following disappointing Alcoa earnings. It closed up over 8 points on Wednesday, led by healthcare and financial stocks.

The market rallied Thursday ahead of Intel (Nasdaq:INTC) earnings, shaking off disappointing data from early in the New York trading session that showed increased unemployment claims and contracting retail sales.

Early in the week, China announced an increase in reserve requirement for banks on inflation concerns.

Also, Philadelphia Fed President Charles Plosser emphasized in a speech on Tuesday about the importance raising interest rates in a timely manner to avoid inflation. The ECB left interest rate at 1% on Thursday, projecting moderate growth and controlled inflation for the euro area.