JPMorgan Chase (NYSE:JPM), the bank headed by Jamie Dimon, dropped 1.5 percent to $37.95. The second-biggest U.S. bank by assets, along with Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC), may lose $1.38 billion in annual revenue from the proposed cap on credit-card swipe fees being considered by the U.S. Congress, Moody’s said in a report. Bank of America fell 1.4 percent to $15.02. Wells Fargo slumped 1.4 percent to $26.65. In other news, Micron Technology (NASDAQ:MU) sank 6 percent to $9.42 even after the largest U.S. maker of computer-memory chips posted a third- quarter net income of $939 million on one-time accounting gains. The company “reported modestly better-than-expected fiscal third-quarter results,” wrote UBS AG analysts in a report. “Despite this, we believe stable to declining price trends over the past month could be a precursor to further declines.” General Mills (NYSE:GIS) dropped 1.1 percent to $37, even after the maker of Cheerios and Hamburger Helper said it’s boosting its quarterly dividend to 28 cents a share from 24.5 cents. General Mills’ board authorized the company to repurchase as many as 100 million common shares. –Bloomberg
Home prices rose 0.8% in April compared with March in 20 major U.S. cities, according to the Case-Shiller home price index released Tuesday by Standard & Poor’s. This is the first increase after six straight monthly declines. Prices have moved up 3.8% in the past year. Prices rose in 18 of the 20 metropolitan areas tracked by Case-Shiller in April compared with March. The data are not seasonally adjusted. –MarketWatch
Worries also focused on China as the Conference Board sharply revised lower its April leading economic indicator for the country, raising fears that a key driver of the global economy could slow. The Shanghai Composite lost 4.3%, with the move by the Agricultural Bank of China to cut the price range for the local portion of its estimated $23 billion initial public offering also weighing on Chinese equities. Tuesday’s economic calendar also includes the Conference Board’s U.S. confidence gauge for June is due for release at 10 a.m., with markets expecting a slight decline. –The Wall Street Journal
Treasury prices continued to surge Tuesday, pushing the 2-year note’s yield to a record low and the 10-year note’s yield below 3% for the first time since April 2009, as the looming expiration of Europe’s bank lending program boosted demand for the safety of government debt. The benchmark 10-year note jumped 10/32 to 104-12/32 and its yield sank to 2.99% from 3.03% on Monday. Bond prices and yields move in opposite directions. The 30-year bond climbed 20/32 to 107-3/32 with a yield of 3.97%. The 2-year note gained 1/32 to 100-1-32 and its yield was 0.62%. Earlier, the 2-year note’s yield fell to 0.59%, a record low. –CNN Money
Filed under: 