US STOCKS-JPMorgan, consumer sentiment batter market

                                
 * JPMorgan Q4 loan losses drag bank shares lower
                                
 * Consumer sentiment weaker than expected in early Jan
                                
 * Indexes down: Dow 1.3 pct, S&P 1.4 pct, Nasdaq 1.4 pct
                                
 * For up-to-the-minute market news, click [STXNEWS/US]
 (Updates to afternoon, changes quotes, byline)
                                
 By Rodrigo Campos
                                
 NEW YORK, Jan 15 (Reuters) - U.S. stocks slid from 15-month
highs on Friday after JPMorgan Chase & Co reported deep
fourth-quarter loan losses that raised concerns about earnings
for the banking industry.
                                
 Also weighing on stocks was consumers' caution about the
economy as reflected in The Reuters/University of Michigan
Surveys of Consumers. It showed preliminary sentiment was
weaker than expected in early January due to worries over
income and high unemployment. For details, see
[ID:nN15217547].
                                
 JPMorgan <JPM.N>, the first major bank to report quarterly
results, announced heavy losses on mortgage and credit card
loans, sending its shares down 2 percent to $43.81. Other large
banks also fell, including Bank of America Corp <BAC.N>, down 3
percent to $16.31 and Wells Fargo & Co <WFC.N> off 3.7 percent
to $27.93. [ID:nN15183524].
                                
 "Even though the JPMorgan numbers were better than expected
on the earnings side, the revenues were slightly disappointing
to some people," said Robert Francello, head of equity trading
at Apex Capital in San Francisco.
                                
 He said investors were also locking in recent gains before
a long weekend for U.S. markets, which will be closed on Monday
for Martin Luther King Jr. Day.
                                
 "People have been reluctant to get extraordinarily long
before long weekends, especially with what's going on from the
sovereign risk perspective overseas," Francello said.
                                
 Investors' appetite for riskier assets fell due to doubts
about Greece's fiscal health. European Central Bank President
Jean-Claude Trichet said Greece must work out its own economic
problems. [ID:nLDE60E0JO].
                                
 The Dow Jones industrial average <.DJI> lost 137.70 points,
or 1.29 percent, to 10,572.85. The Standard & Poor's 500 Index
<.SPX> fell 15.81 points, or 1.38 percent, to 1,132.65. The
Nasdaq Composite Index <.IXIC> dropped 33.24 points, or 1.43
percent, to 2,283.50.
                                
 The Dow and the S&P 500 hit their highest levels in more
than 15 months on Thursday.
                                
 Intel Corp <INTC.O>, a Dow component and the world's
largest chipmaker, late Thursday posted fourth-quarter results
that beat Wall Street forecasts. [ID:nN13151343].
                                
 Intel shares fell 2.9 percent to $20.86 on Friday on what
analysts said was profit-taking, and a semiconductor index
<.SOXX> tumbled 3.4 percent.
                                
 Other data on Friday showed U.S. consumer prices rose
modestly while industrial output rose, suggesting the economy
was growing but not generating enough inflation to trouble the
Federal Reserve. [ID:nN15217547]
                                
The CBOE Volatility Index <.VIX> jumped 5 percent as
investors adjusted their positions ahead of the monthly
expiration of January options, which expire after the close.
                                
"The options expiration does have an influence on price and
creates more volatility, and this particular expiration has a
downside influence," said Frank Lesh, futures analyst and
broker at FuturePath Trading LLC in Chicago.
 (Editing by Kenneth Barry)