* World stock index turns negative after JPMorgan results
* JPM reports Q4 income $3.3 bln; retail banking weighs
* Dlr rise pushes euro down nearly 1 percent
(Adds New York trading)
By Sujata Rao and Al Yoon
LONDON/NEW YORK, Jan 15 (Reuters) - Investors sold shares
globally and stepped up bids for safe-haven bonds and the U.S.
dollar after JPMorgan & Co <JPM.N> reported deep losses on
loans and its revenue fell short of expectations.
Results from the second-largest U.S. bank followed tepid
U.S. data and a season of lackluster earnings that has kept
alive worries about economic recovery in the U.S. and abroad.
New-York based JPMorgan reported a quarterly profit of 74
cents a share, a huge rise on the year earlier quarter. But its
$25.2 billion revenue number was below estimates, tainting the
sector that has just begun to release fourth quarter results.
[]. Its shares fell nearly 2 percent.
Equity gains earlier in the session were capped despite
upbeat earnings from chipmaker Intel Corp <INTC.O>. By midday
in New York world stocks <.MIWD00000PUS> had lost 0.9 percent,
retreating further from 15-month highs hit earlier in the
week.
European stock markets <> which opened firmer on the
back of Intel results reversed gains to trade down 1.1 percent.
Banks bore the brunt of selling. Earlier, Japan's Nikkei index
<> rose about 0.7 percent.
Buoyant headline numbers for JPMorgan were overshadowed by
loan losses and high bad-debt provisions.
"JPMorgan top-line results were disappointing... there were
pressures on credit card lending and retail banking and it just
shows the U.S. economy is far from out of the woods yet," said
David Buik, partner at BGC Partners in London.
The Dow Jones Industrial Average <> fell 107.77 points,
or 1.01 percent, to 10,602.78. The Standard & Poor's 500 Index
<.SPX> slid 12.69 points, or 1.10 percent, to 1,135.77 and the
Nasdaq Composite Index <> declined 27.61 points, or 1.19
percent, to 2,289.13.
Intel Corp <INTC.O>, another Dow component and the world's
largest chipmaker, posted fourth-quarter results that beat Wall
Street forecasts after the bell on Thursday. It gave a bullish
margin outlook on higher prices and firm demand for server
chips. []
Geoff Lewis, head of investment services at JP Morgan Asset
Management in Hong Kong, said corporate earnings alone will not
lift markets for long.
"You still have to see continued good news on the economic
front," he said. "Markets will want to see evidence of strength
in private sector demand ... it's important the economy stand
on its feet after the public fiscal stimulus starts to fade."
DOLLAR, YEN, BONDS GAIN
The U.S. dollar rose broadly on Friday helped by data
showing a rise in manufacturing and stable consumer price
inflation. Concerns about the struggling Greek economy weighed
on the euro.
Analysts noted the string of reports released on Friday
were mostly in line with expectations, showing some improvement
in a regional manufacturing indicator and tame consumer prices.
Meanwhile, a measure of U.S. consumer sentiment was little
changed in early January.
The euro, under pressure from worries over the struggling
Greek economy and the growing public debt burden in some euro
zone economies, slid 0.87 percent to $1.4376, compared with
around $1.4390 before the results and a previous session close
of $1.4502.
Against a basket of major trading partners' currencies, the
dollar rose 0.66 percent to 77.236 <.DXY>. It fell 0.41 percent
to 90.77 yen, however.
The U.S. Labor Department report showing consumer prices
rose at a slower-than-expected pace in December helped fuel
gains in fixed-income assets such as U.S. Treasury securities.
Dormant inflation favors long-dated bonds because inflation
erodes the value of fixed-income investments. Long maturities
led the rally as dealers covered short positions after the
Treasury's $13 billion 30-year bond sale on Thursday.
The yield on the benchmark 10-year Treasury note declined
0.07 percentage point to 3.67 percent, the lowest level since
mid-December.
(Additional reporting by Vivianne Rodrigues, Ellen Freilich
and Angela Moon in New York; Editing by Andrew Hay)
