Market Summary: Thurs. Jan. 15, 2009

The Dow and the S&P 500 finished up a few points, but the tech-heavy NASDAQ was the winner finishing up 1.5%. Stocks reversed on little news midday after being down about 2%.

Here’s the news:

1) JPMorgan reported fourth quarter income of $0.07 per share. Not including a one-time gain, the company actually lost $0.28 per share. JPM wrote down $2.9 billion worth of assets and tripled its loan-loss provisions for bad debt. CEO Jamie Dimon said the company remains committed to paying its dividend. Shares finished the day down 6%.

2) Bank of America is close to receiving $15-20 billion in TARP funds from the government. The company could also receive $120 billion in guarantees on losses from bad assets. When Citigroup received its bailout money, it got $20 billion and $306 billion in guarantees. Shares of BAC were down 18.5% on the day.

3) As expected, the European Central Bank cut its benchmark interest rate 50 basis points to 2%. President Jean-Claude Trichet said inflation risks are “broadly balanced” and he does not expect rates to go to zero. The Euro was unchanged on the day as this move was expected.

4) General Motors lowered its U.S. auto sales estimate to 10.5 million units in 2009 from its previous estimate of 12 million. GM will receive a $5.4 billion loan from the government on Friday as part of a previously announced rescue package.

5) Shares of Wells Fargo finished the day down 12.5% after an analyst said the company may need to raise $10 billion and cut its dividend in order to complete its acquisition of Wachovia.

6) Shares of Citigroup were down as much as 25% today on concerns the company might need more government assistance. Citi has already received $45 billion from the TARP.

7) Apple was only down 2.3%, much less than some people thought, after CEO Steve Jobs announced he will be taking a leave of absence until July. There was a report that Jobs may be having his pancreas removed. Jobs had pancreatic cancer in 2004. Here is an article that discusses the premium built into Apple stock because of Steve Jobs.

8) Crude oil for February delivery fell below $34, but March crude oil (the more frequently traded contract) finished at $43.50. Crude oil futures are at about the same prices as they were one month ago when the January contract was expiring.

9) Mortgage foreclosures were up 81% in 2008.

10) Motorola announced it would cut another 4,000 workers.

11) The Senate voted 52-42 in favor of releasing the second $350 billion of TARP funds.

12) House Democrats are planning an $825 billion stimulus package which includes $275 billion of tax cuts.