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Strategies & Market Trends : Can you beat 50% per month? -- Ignore unavailable to you. Want to Upgrade?

To: Sojourner Smith who wrote (4244)	9/18/2002 3:42:52 PM
From: Sojourner Smith	Read Replies (1) \| Respond to of 19256

I am also noticing that the 50DMA averages are starting to turn up a little. I am running DMI crossovers looking for shorts, and I am having some doubts.

To: Sojourner Smith who wrote (4244)	9/18/2002 5:45:39 PM
From: Smiling Bob	Respond to of 19256

JPM getting more bad press Reuters Business Report Pressure on JP Morgan CEO as Losses Mount Wednesday September 18, 4:22 pm ET By Mary Kelleher NEW YORK (Reuters) - J.P. Morgan Chase & Co. Inc. (NYSE:JPM - News) Chief Executive William Harrison -- considered one of Wall Street's stars when he helped create the country's No. 2 banking company -- now is fighting for his professional life. ADVERTISEMENT The top bank's sharp profit warning, which knocked the stock down as much as 13 percent on Wednesday, caps a stream of bad news from J.P. Morgan Chase since its December 2000 merger and puts pressure on upper management to turn results around. "What's a gracious way of saying the bank has had trouble generating reliable earnings? ... At some point the board is going to demonstrate some concern on that subject," UBS Warburg analyst Diane Glossman said. "If you get either a continued weakness in capital markets and/or execution problems, it wouldn't be surprising to see management changes." J.P. Morgan Chase on Tuesday night said its third-quarter earnings would be well below the second quarter's due to steep losses on loans to telecommunications and cable firms and misplaced trading bets. Its stock pared initial losses but closed down 5.15 percent, or $1.11 to $20.44. Rating agency Standard & Poor's, which cut its rating on the bank's debt on Tuesday -- making it more expensive for J.P. Morgan Chase to borrow money -- said the bank could face another downgrade if a trading slump persists past the fourth quarter. "We don't think the worst is over for the company," said S&P analyst Tanya Azarchs. "There is considerable risk there will be a repeat of another bad quarter in the future." J.P. Morgan Chase's earnings warning was just the latest hit absorbed by Wall Street's biggest firms. J.P. Morgan Chase has faced fire for questionable financings it set up for bankrupt energy trader Enron Corp. (Other OTC:ENRNQ.PK - News). It has lost money in Argentina, in its own investment portfolio, in trading and in capital markets areas like advising on stock offerings. The stock is down nearly 70 percent from a peak hit a month after its merger closed at the end of 2000. "This is definitely a merger that has not worked out," said Beni Gradwohl, managing director, disciplined investment group, at money manager J. & W. Seligman & Co. "The timing was bad with the economy taking a tailspin." RATING CUTS Prolonged difficult conditions and continued internal slip-ups at the bank ultimately could force J.P. Morgan Chase into a merger, UBS's Glossman said. The combination of J.P. Morgan and Chase Manhattan at the time was heralded as the creation of a powerful buyer of other companies, not a seller. Debt rating agencies S&P and Fitch cut their rating on J.P. Morgan Chase debt after the warning, and analysts on Wednesday slashed earnings estimates and recommendations. The bank's announcement also shook the U.S. financial industry, raising concerns about telecom loan and trading losses at other banks and brokers. Stocks of rivals like Citigroup (NYSE:C - News), Bank of America (NYSE:BAC - News), and Merrill Lynch & Co. Inc. (NYSE:MER - News) dropped, though not as sharply. "A lot of these problems are not new, whether it's weakness in capital markets or ongoing corporate loan losses, but I do think the depth and length that the problems will persist looks longer," Prudential Securities analyst Mike Mayo said. Harrison on a Tuesday conference call with analysts apologized for the results and said he took full responsibility. But, in an editorial in Wednesday's Wall Street Journal, he said banks have been unfairly chastised for contributing to recent corporate scandals and contended banks were instead the biggest victims of corporate fraud. "After every bubble, there is a search for a scapegoat," Harrison wrote. But many of the loan losses and faulty trading bets that will hurt J.P. Morgan Chase in the third quarter are its own problems, putting pressure on the bank's board to deliver better results or overhaul management, analysts said. "A lot of this stuff has not been new news for a while and the fact that it's significantly bigger than what everyone was expecting raises some issues about confidence in senior management," said Jim Mitchell, an analyst at Putnam Lovell. "Investor confidence in senior management is important for the long-term value of the stock, so it has definitely got to put some pressure on the board to think about this in a serious way." biz.yahoo.com