NEW YORK (AP) — More problems for Boeing’s 787 sent the aircraft maker’s stock down sharply early Wednesday, dragging the Dow Jones industrial average lower.
Japan’s two biggest airlines grounded all their Boeing 787s for safety checks Wednesday after one was forced to make an emergency landing. The plane, known as the Dreamliner, has been plagued by a series of problems this year, including a battery fire and fuel leaks. Boeing’s stock sank $2.74 to $74.20, a loss of 4 percent.
The Dow was down 30 points at 13,504 as of 1:32 EST on Wednesday.
The Standard & Poor’s 500 index fell less than one point to 1,472, while the Nasdaq composite climbed five points to 3,116.
Goldman Sachs and JPMorgan Chase, the country’s largest bank, rose after both posted quarterly results that trounced analysts’ estimates.
Harry Clark, chairman of Clark Capital Management Group in Philadelphia, described JPMorgan’s numbers as staggering. The bank’s earnings jumped 55 percent over the prior year.
“Their earnings are just ridiculously good,” Clark said. “It shows you that these giants can make money in any type of environment.”
Slightly smaller financial firms, such as Northern Trust and Bank of New York Mellon, reported weaker earnings and their stocks sank.
JPMorgan Chase edged up 23 cents to $46.58. The bank’s stunning results were offset by an internal review of a $6 billion trading loss on credit derivatives. JPMorgan’s board of directors criticized executives for failing to keep the board informed of potential problems and using unapproved models for measuring trading risks.
Goldman Sachs gained $5.06 to $140.65, a 4 percent jump. The investment bank’s profits nearly tripled in the fourth quarter of last year. Goldman’s bond underwriting business had its best year since the financial crisis, thanks to strong demand for fixed-income investments and companies lining up to borrow at historically cheap rates.
Analysts forecast that companies in the S&P 500 will report a 3.2 percent increase in fourth-quarter earnings. Financial firms and consumer-discretionary companies are expected to post the biggest growth, according to S&P Capital IQ.
The Labor Department said consumer prices were flat last month as gas prices sank. The December reading of the consumer price index capped a year of tame inflation. Consumer prices increased just 1.7 percent in 2012, down from 3 percent in 2011.
The report on consumer prices led traders to push up prices for Treasurys, knocking yields down. The 10-year Treasury note’s yield slipped to 1.82 percent. The yield, used to set mortgages and a wide variety of other loans, ended Tuesday at 1.84 percent.
Among other companies making news:
— Wendy’s rose 2 percent, or 11 cents, to $5.01. The hamburger chain, known for its Frosty shakes and square burgers, earnings topped Wall Street’s estimates, even as a key indicator of sales at North American restaurants dipped slightly.
— Genworth Financial jumped 10 percent, the largest gain in the S&P 500. The financial services company laid out a plan to reorganize its business, including putting its mortgage unit under a new company. Genworth’s stock gained 83 cents to $8.96.
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Credit: AP/LM Otero
Jack McMahon, the defense attorney for abortion doctor Kermit Gosnell, speaks outside the Criminal Justice Center in Philadelphia Tuesday. His client was convicted of killing three babies in his clinic, and will serve multiple life sentences.
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Sen. Rand Paul, R-Ky., flanked by a grouper-eyed Michele Bachmann, addresses the IRS' admission that it targeted Tea Party groups in advance of the 2012 election. In an op-ed for CNN Thursday, the Kentucky senator slammed the president for his faux outrage.
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Ousted IRS chief Steven Miller is sworn in on Capitol Hill Friday. Miller testified before the House Ways and Means Committee on the extra scrutiny the agency gave conservative groups applying for tax-exempt status.
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Attorney General Eric Holder pauses as he testifies on Capitol Hill before the House Judiciary Committee Wednesday. Holder is under fire, among other things, for the Justice Department's gathering of phone records at the Associated Press.
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O.J. Simpson sits during an evidentiary hearing at Clark County District Court in Las Vegas, Nev., Thursday. Simpson, who is currently serving a nine-to-33-year sentence in state prison for armed robbery and kidnapping, is using a writ of habeas corpus to seek a new trial.
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Major Tom to ground control: On Sunday astronaut Chris Hadfield recorded the first music video from space, a cover of David Bowie's "Space Oddity."
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When it rains it pours. President Barack Obama speaks during a news conference Thursday with Turkish Prime Minister Recep Tayyip Erdogan, inexplicably inspiring an #umbrellagate Twitter meme.
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A smoke plume rises high above a road block at the intersection of County A and Ross Road east of Solon Springs, Wis., Tuesday. No injuries were reported, but the the wildfire caused evacuations across northwestern Wisconsin.
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