Ahmed Elbatrawy

Stocks claw higher

u.s. stock market

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NEW YORK (CNNMoney) — U.S. stocks bounced back Friday as strength in the technology sector offset weakness from financial shares sparked by JPMorgan’s revelation that it had suffered a $2 billion trading loss.

The Dow Jones industrial average (INDU) gained 36 points, or 0.3%. The SP 500 (SPX) rose 5 points, or 0.4%, and the Nasdaq (COMP) gained 25 points, or 0.8%. All three indexes had opened lower.

The technology sector was supported by shares of chip maker Nividia (NVDA), which rose 9% on better-than-expected quarterly results.

Shares of JPMorgan Chase (JPM, Fortune 500) fell 9% early Friday, a day after the firm reported a $2 billion loss. CEO Jamie Dimon cited “errors” and “bad judgment” in trades meant to hedge risk.

The news raised worries whether conditions since April would cause more unreported losses at other big banks. Shares of Citigroup (C, Fortune 500), Morgan Stanley (MS, Fortune 500), Bank of America (BAC, Fortune 500), Goldman Sachs (GS, Fortune 500) and fell between 1.5% and 4%.

While the loss is bad for investors who bet on bank stocks, JPMorgan is not the main concern for the broader market, said Peter Boockvar, chief market strategist with Miller Taback Co.

“Why should JPMorgan impact the rest of the market?” he asked. “The bigger concern is the continued issues with Spain.”

Spain announced plans Friday to require banks to set aside an additional €30 billion to offset potential losses. The government will also hire two independent auditors to review the banks’ assets, in an effort to assure investors about their viability.

Boockvar said the reserve requirements were smaller than some analysts had expected.

Meanwhile, Greek politicians are still struggling to form a coalition government, which makes the future of austerity measures and a European bailout of its debt unclear.

In China, a report showed an unexpected drop in the rate of industrial production growth, which could feed fears of a so-called hard landing for the world’s No. 2 economy.

“I think we continue to head lower because Europe is a problem and the global economy is slowing down,” said Boockvar.

U.S. stocks ended mixed Thursday, as investors welcomed a small drop in jobless claims.

World markets: European stocks were lower in midday trading. Britain’s FTSE 100 (UKX) fell 0.6%, the DAX (DAX) in Germany slipped 0.7%, and France’s CAC 40 (CAC40) shed 1.6%.

Asian markets ended in the red. The Shanghai Composite (SHCOMP) closed down 0.6%, as did Japan’s Nikkei (N225), while the Hang Seng (HSI) in Hong Kong lost 1.3%.

Economy: Lower energy prices took wholesale prices down 0.2% in April, according to the Labor Department’s producer price index. Economists surveyed by Briefing.com had expected prices to be unchanged from March. But stripping out volatile food and energy prices left core wholesale prices up 0.2%, which matched forecasts.

At 9:55 a.m. ET, the University of Michigan releases its consumer sentiment index. Economists surveyed by Briefing.com predict the index to come in at 75, lower than last month’s revised tally of 76.4.

Companies: Shares of upscale retailer Nordstrom (JWN, Fortune 500) fell after it reported earnings of 70 cents a share, which fell 5 cents short of forecasts, despite revenue that was roughly in line with forecasts.

U.S. shares of Sony (SNE) fell further in early trading after it sank 6.5% in Tokyo to a multi-decade low for the stock in its home market. Sony reported lower earnings after the close of the market in Tokyo on Thursday, which hit before the New York exchange open.

Currencies and commodities: The dollar fell against the euro, but rose versus the Japanese yen and British pound.

Oil for June delivery lost $1.40 to $95.68 a barrel.

Gold futures for June delivery tumbled $14.10 to $1,581.40 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury was little changed, leaving the yield near the 1.88% level. To top of page

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Ahmed Elbatrawy