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BUSINESSWednesday 15 July 2015
JPMorgan 2Q profit rises 4% as bank trims expenses
KEN SWEET totaled $23.81 billion, down was the main driver behind auto and credit card divi- big U.S. banks to announce
AP Business Writer from $24.68 billion. Rev- the bank’s ability to beat sion, as well as reduced ex- earnings, along with Wells
NEW YORK (AP) — JPMor- enue at three of the four Wall Street expectations of penses. Fargo, which reported re-
gan Chase & Co.’s sec- JPMorgan businesses fell $1.43 a share. JPMorgan and other banks sults that matched ana-
ond-quarter profit rose 4 or was flat. The only busi- At JPMorgan’s investment have been trimming their lysts’ estimates on Tuesday.
percent as the bank made ness where it grew was as- bank, net income rose 10 balance sheets and selling Like JPMorgan, revenue at
up for lower revenue by set management. percent as lower expenses off businesses for several Wells Fargo was lower.
cutting expenses. But as revenues declined, offset revenue declines years. Headcount at the JPMorgan CEO Jamie Di-
The largest U.S. bank by JPMorgan was able to both in its trading and in- bank was 237,459, down 3 mon said at the end of the
assets said Tuesday that compensate by cutting vestment banking adviso- percent from a year earlier. company’s earnings call
it earned $5.78 billion, or expenses, reducing head- ry business. Legal expenses, which had that he may not partici-
$1.54 a share, in the lat- count, and through a $330 In consumer banking, net been a major issue during pate in future calls, instead
est quarter, up from $5.57 million gain as its corporate income edged up 1 per- the past few years, also de- leaving the talking to Mari-
billion, or $1.46 a share, a tax rate fell. Barclays’ ana- cent, helped by higher clined. anne Lake, the bank’s chief
year earlier. Net revenue lysts said the tax benefit sales and loan growth in its JPMorgan is one of the first financial officer.q
Wall Street post 4th straight day of gain; Micron soars
BERNARD CONDON The gains were modest but for the broader index. to 18,053.58. slipped 0.3 percent in June,
AP Business Writer widespread. Among the 10 The S&P 500 increased 9.35 The Nasdaq composite the weakest showing since
NEW YORK (AP) — Stocks industry sectors of the Stan- points, or 0.5 percent, to climbed 33.38 points, or 0.7 February. That followed a
climbed broadly on Tues- dard and Poor’s 500 index, 2,108.95. The Dow Jones percent, to 5,104.89. robust 1 percent jump in
day as investors who had May.
been fretting over the Vincent Khemlall, 7, of New York, uses a hula hoop provided by Carnival Cruise Lines outside the A separate report from Na-
Greek debt crisis and New York Stock Exchange, Tuesday, July 14, 2015. Carnival, which rang the closing bell at the tional Federation of Inde-
plunging Chinese stocks exchange, is the largest cruise company in the world, with a portfolio of 10 cruise brands in North pendentBusiness showed
turned their attention back America, Europe, Australia and Asia. an index of small busi-
to the U.S. economy and ness optimism fell in June.
corporate earnings reports. (AP Photo/Mark Lennihan) Investors were also keeping
JPMorgan Chase and an eye on Greece after the
Johnson & Johnson report- only utilities fell. It was the industrial average gained The Commerce Depart- country struck a preliminary
ed second-quarter profits fourth straight gain in a row 75.90 points, or 0.4 percent, ment said retail sales deal with its creditors.
that were stronger than ex- Prime Minister Alexis Tsipras
pected. has to convince lawmakers
to approve tax hikes and
A government report spending cuts by Wednes-
showed that Americans cut day to receive emergency
back on spending at retail- money and re-open the
ers last month, but some country’s banks, but he
investors interpreted that faced dissent even within
as good for stocks since it his left-wing party.
may make the Federal Re- Peter Cardillo, chief econo-
serve more cautious when mist at Rockwell Global, a
it starts raising rates for the brokerage firm, thinks the
first time in nine years. Greek crisis may still spook
“It’s back to the mindset the stock market.
that bad news is good He said investors seemed to
news,” said James Abate, be more focused Tuesday
chief investment officer of on earnings, and hoping
Centre Funds. some decent reports so far
“We think (the Fed) will raise will continue and buck the
rates in September, but we currently low expectations
don’t think it will be an ag- investors have.q
gressive tightening cycle.”
Prominent Texas businessman Bass invests in Blue Bell
BRENHAM, Texas (AP) — An ner in Brenham-based Blue ing three deaths in Kansas. the company plans to be- Fort Worth. Forbes last year
investment by a prominent Bell Creameries, CEO and A Food and Drug Adminis- gin building inventory to re- ranked Bass as the 324th
Texas businessman will en- President Paul Kruse said in tration investigation found sume commercial sales. wealthiest person in the U.S.
sure the return of Blue Bell a statement. that Blue Bell knew that The company did not re- “Blue Bell is the quality
ice cream to the market The privately held compa- it had listeria in one of its veal the amount of Bass’ leader in the ice cream in-
after listeria contamination ny stopped production at plants for almost two years investment, but Kruse said dustry,” he said in the state-
prompted a shutdown in its Brenham; Broken Arrow, before the recall. Bass made a “significant ment. “We believe qual-
manufacturing, the com- Oklahoma; and Sylacau- No date has been given investment” and the “ad- ity is the principle attribute
pany said Tuesday. ga, Arkansas, facilities after for when Blue Bell products ditional capital will ensure that ensures the success,
Billionaire businessman Sid issuing a national recall in could be back in stores. the successful return of growth and longevity of
Bass, an investor and phi- April because of concerns Blue Bell last week an- our ice cream.” Blue Bell a business.”
lanthropist whose father about listeria. Its ice cream nounced plans to test pro- is extremely popular in its Bass did not return a mes-
and uncle built an oil for- was linked to 10 listeria ill- duction runs at its Alabama home state, and Bass and sage Tuesday seeking ad-
tune, has become a part- nesses in four states, includ- plant. After a trial period, his family have deep ties to ditional comment.q
