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US STOCKS-Wall St rises at the end of a soft week
May 11, 2012 / 4:07 PM / in 6 years

US STOCKS-Wall St rises at the end of a soft week

* Bank shares weak after JPMorgan reveals loss
    * Sector was already pressured by Europe, growth fears
    * Nvidia rallies after results, lifting Nasdaq
    * Dow up 0.5 pct, S&P up 0.6 pct, Nasdaq up 0.8 pct

    By Edward Krudy	
    NEW YORK, May 11 (Reuters) - U.S. stocks rose on Friday
after a strong outlook from chipmaker Nvidia and surprisingly
robust consumer confidence offset a slide in bank shares after
disclosures of huge trading losses at JPMorgan Chase & Co. 	
    JPMorgan said it lost at least $2 billion from a
failed hedging strategy. The Dow component was down 7.3 percent
at $37.77 and weighed on the entire sector.	
    Nvidia Corp rose 8.4 percent to $13.46 after
reporting adjusted first-quarter earnings that beat
expectations. The stock boosted the Nasdaq and was the S&P 500's
top percentage gainer. 	
    U.S. consumer sentiment rose to its highest in more than
four years in early May as Americans remained upbeat about the
job market. The survey was a welcome sign amid worries that the
economic recovery may be slowing down.	
    "It sort of runs against expectations," said Sean Incremona,
an economist at 4Cast in New York. "We were looking for a bit of
a pullback here but consumers appear to be happy."	
    Still, the S&P 500 was on track for its second weekly
decline, although investors were encouraged after the index has
rebounded from 2-month lows hit on Wednesday and looks set to
close once again above April lows.	
    The Dow Jones industrial average was up 61.57 points,
or 0.48 percent, at 12,916.61. The Standard & Poor's 500 Index
 was up 7.67 points, or 0.56 percent, at 1,365.66. The
Nasdaq Composite Index was up 24.74 points, or 0.84
percent, at 2,958.38.  	
    JPMorgan estimates the business unit involved in the trading
loss will lose $800 million in the current quarter, excluding
private equity results and litigation expenses. The bank had
previously expected the unit to earn a profit of about $200
million.	
    Jamie Dimon, the chief executive of the biggest U.S. bank by
assets, cautioned that losses could grow by another $1 billion,
another hurdle for a sector already besieged by the sovereign
debt crisis in Europe and fears of slowing growth globally.
 	
    JP Morgan's news weighed on bank shares as investors feared
both a greater risk of more regulation and the potential for
more such losses at other banks. However, the stocks were off
their lows of the morning.	
    Citigroup Inc lost 2.3 percent to $29.93 and the
Financial Select Sector SPDR was off 0.4 percent to
$14.72. The S&P financial sector fell 0.5 percent,
extending its month-to-date losses to 3.4 percent.	
    Financial stocks have been among the most volatile in recent
months as investors question what the growth outlook for the
United States and the debt crisis of Europe will mean for the
group's profits. JPMorgan has fallen 11.7 percent this month.	
    The CBOE VIX Volatility Index is up 9 percent this
month in a sign of growing caution, although it eased somewhat
on Friday.	
    Thomson Reuters/University of Michigan's preliminary
consumer confidence index for May improved to 77.8 from 76.4 in
April, topping forecasts of 76.2.	
    Of the 453 companies in the S&P 500 that have reported
earnings to date for Q1 2012, 66.2 percent have reported
earnings above analyst expectations, according to Thomson
Reuters data. 	
    That compares with more than 80 percent at the start of
earnings season and is below the average for the past 4 quarters
of 68 percent.

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