Diamonds and Dogs
05/11/2012JPMorgan Chase & Co. (JPM)
JPMorgan got crushed today, down 9.30% at $36.95. JPMorgan was down significantly following the news that the company had a $2 billion trading loss and $800 million or more blow to earnings as a result of some rogue in England known in the markets as the London Whale. This "London Whale" is a he or possibly a they; that holds enormous positions in the debt markets which have been the subject of concern in the markets for months. The Financial Times stated, "so far the numbers are not enough to dent J.P. Morgan's balance sheet, nor its capital-adequacy ratios much, nor its ability to return money to shareholders." Even though a $2 billion dollar loss might not affect JPMorgan's balance sheet, it is enough to scare investors away.
Arena Pharmaceuticals Inc. (ARNA)
Arena Pharmaceuticals is doing phenomenal today, up 73.77% at $6.36. The company saw its stock nearly doubled in value after a panel of experts recommended approval of the company's obesity pill, a big step towards making it the first new diet drug on the U.S. market in more than a decade. Lorcaserin is one of the three obesity treatments that are currently trying to win approval from the Food and Drug Administration (FDA) to enter a potentially huge market, given the country's growing obesity epidemic. With FDA approval, Arena could beat its competitors to the market and gain a larger percentage of the diet pill market. Arena is one of the largest percentage gaining stocks of the day.
Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.