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Carnival Cruise Line Sinks; JPMorgan’s Captain Under Fire

Dan Berman
Hot Stock Minute

Ten and then. The Dow ended its ten day winning streak today, falling 0.17% to close at 14,514. The losses also marked the end of an eight-day streak in which the index kept closing at record highs. The S&P 500 opened the day just two points shy of its all-time high but also pulled back 0.14% to 1,561. This was the first Friday of 2013 where markets closed lower.

JPMorgan's (JPM) shares fell 2% today from their 52-week high. A Senate committee held hearings on the London Whale multi-billion dollar trading loss. CEO Jamie Dimon is being accused of trying to hide the losses from investors and federal regulators alike. The head of the committee, Michigan Senator Carl Levin says the company, "piled on risk, ignored limits on risk taking, hid losses, dodged oversight and misinformed the public." A JPMorgan rep tells the Wall Street Journal, "while we have repeatedly acknowledged mistakes, our senior management acted in good faith and never had any intent to mislead anyone."

Separately, the Federal Reserve says JPMorgan displayed weaknesses in capital planning as part of an annual stress test. Also cited was Goldman Sachs (GS). Both banks will have to resubmit plans in the next six months.

Shares of Carnival Cruise Lines (CCL) dropped 2% on the company's quarterly earnings, despite year-to-year improvement. Carnival says it earned $37 million, or 5-cents a share. That compares to a loss of $139 million, or 18 cents a share one year ago. It's no secret the company has hit rough seas over the past three months. The period covers the disaster on the Carnival Triumph where an engine room fire knocked out power and plumbing, stranding people for days. The company has since been offering sales to help attract passengers. Two of Carnival's other ships-- the Legend and the Dream-- are currently having mechanical problems. The company says it's too soon to tell what impact those incidents might have on future business.

Hibbett Sports (HIBB) was in play today after posting its quarterly earnings. The stock closed higher by over 3%. Hibbett's adjusted earnings per share rose nearly 24% to 73-cents, beating estimates. Revenue increased 14% from the same quarter last year to $217 million. Hibbett owns sporting goods stores in small to mid-sized markets. Most of its locations are around the Southeast, Southwest, Midwest and Mid-Atlantic regions. The chain's rival Dick's Sporting Goods (DKS) plummeted after reporting earnings on Monday, but then regained its own footing with some analyst upgrades.

Meanwhile, the Brown Shoe Company (BWS) was tripped up by its earnings report released before the opening bell. Shares fell 5% even though the company swung to a profit. The company reported earnings of $4 million in the most recent fiscal quarter versus a loss of $8.2 million in the same quarter last year. Net sales were $640 million, up 1.8% year-to-year. The stock price had risen several percent yesterday when the company declared a 7-cent dividend.