Stock futures sink after JPMorgan Chase results

 @ibtimes
on January 15 2010 8:24 AM

U.S. stock index futures fell on Friday after disappointing results from JPMorgan Chase & Co pressured banking stocks.

JPMorgan , the second-largest U.S. bank by assets, posted revenue that fell short of Wall Street's forecast, raising concerns about the industry and pulling lower shares of rivals Bank of America Corp and Wells Fargo & Co.

They (JPMorgan) missed revenue by a decent amount, and I think that's why the stock is falling right now, said Peter Boockvar, equity strategist at Miller Tabak & Co in New York.

JPMorgan shares, part of the Dow industrials index, fell 1.9 percent to $43.85 in premarket trading and Bank of America shed 2 percent to $16.49. Wells Fargo was down 1.7 percent to $28.49 before the bell.

S&P 500 futures fell 5.0 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 32 points, and Nasdaq 100 futures lost 9.25 points.

Intel Corp , another Dow component and the world's largest chipmaker, posted fourth-quarter results that beat Wall Street forecasts after the bell on Thursday, and gave a bullish margin outlook on higher prices and firm demand for server chips. The stock was up 0.3 percent before the bell.

Investors are awaiting economic data later Friday for clues on consumers spending and sentiment. The U.S. Labor Department's December Consumer Price Index is set for release at 8:30 a.m. Economists in a Reuters survey expect a month-over-month increase of 0.2 percent, following a 0.4 percent gain for November.

The Reuters/University of Michigan Surveys of Consumers preliminary January consumer sentiment index is due at 9:55 a.m. (1455 GMT). Economists forecast the index rose to 73.9, up from 72.5 in December.

(Additional reporting by Ryan Vlastelica; Editing by Padraic Cassidy)

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