The good news is Americans are saving more money, but the bad news is they're spending less on things that will propel the economy forward. Investors digested that paradoxical relationship as the markets ended mixed, as the Dow finished down 34.01, or .40%, at 8,438.39 and the Nasdaq inched up 8.68, or 0.47%, to 1,838.22.
One of Friday's losers was UBS (NYSE:UBS), which reported it expects to see a big loss in the second quarter, forcing it to raise even more capital. Meanwhile, shares of J.P. Morgan Chase & Co. (NYSE:JPM) rose as its investment banking unit advanced as a report revealed that it's gaining market share and could pose a threat to Goldman Sachs Group Inc. (NYSE:GS).
Shares of UBS fell 69 cents, or 5.32%, to $12.28 as it announced it expects to raise about Sfr3.8 billion ($3.5 billion) by selling shares. The second-quarter loss is attributed to restructuring charges due to massive layoffs that ran into the thousands.
Meanwhile, shares of J.P. Morgan increased 31 cents, or 0.91%, to $34.45 as Reuters reported that the investment banking unit of J.P. Morgan forecast strong second-quarter results. "J.P. Morgan can compete with, and beat, Goldman Sachs," said Dick Bove, a veteran banking analyst with Rochdale Securities. With $2.1 trillion in assets, J.P. Morgan's size means it can lend more to more clients, giving it a better chance to sell other services, Bove added.
Bove's comments had no impact on Goldman shares, which closed up $2.31, or 1.60%, at $146.74. - Gerald Magpily
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