Stocks to Watch: JPMorgan, Arena (Update 1)

TheStreet.com

NEW YORK -- JPMorgan Chase JPM recorded a $2 billion mark-to-market loss in its synthetic credit portfolio since the end of the first quarter, the bank said Thursday.

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CEO Jamie Dimon called the trade "flawed, poorly reviewed, poorly executed" and said it reflected "sloppiness" and " bad judgment."

In a conference call Thursday, Dimon said the bank's Chief Investment Office suffered a trading loss of $2 billion in its synthetic credit portfolio, offset by a $1 billion securities gain, as a strategy to re-hedge its portfolio backfired.

Shares of JPMorgan fell 6.73% in premarket trading Friday to $38.

Other bank stocks were also affected by the news. Citigroup C shares dropped 2.61% to $29.85; Morgan Stanley MS shares lost 2.82% to $15.16; shares of Goldman Sachs GS fell 2.32% to $103.85; Bank of America BAC dropped 2.47% to $47.51; shares of Wells Fargo WFC declined 1.9% to 432.56.


Arena Pharmaceuticals ARNA said Thursday Food and Drug Administration advisers recommended approval of the company's diet drug lorcaserin.

Arena said it's working with the agency as it finishes its review. A final decision from the FDA could be made June 27.

Lorcaserin could be the first new prescription diet drug in over a decade in the U.S.

Shares of Arena Pharmaceuticals skyrocketed 96.72% to $7.20 in premarket trading Friday.

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Nvidia NVDA , the graphics chipmaker, is scheduled to post first-quarter results Friday.

Analysts forecast profit of 10 cents a share in the April-ended period on revenue of $916.2 million.

Shares of Nvidia ticked down 7 cents, or 0.56%, in premarket trading Friday to $12.35.

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Other companies reporting earnings on Friday include Cache CACH and ReneSola SOL .

Cache reported a first-quarter loss of $1.2 million, or 9 cents a share, wider than the year-earlier loss of $772,000, or 6 cents a share.

Analysts, on average, expected a loss of 9 cents a share.

ReneSola reported first-quarter a loss of $40.2 million, or 23 cents a share, a reversal from year-earlier earnings of $43.3 million, or 24 cents a share.

On average, analysts were expecting earnings of 31 cents a share.

-- Written by Joseph Woelfel and Alexandra Zendrian

>To contact the writer of this article, click here: Joseph Woelfel

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