May 11, 2012-Stocks Drift Lower at Market Close

After seeing considerable volatility in early trading on Friday, stocks drifted to the downside in the afternoon, ending the day mostly lower. Troubling news from JP Morgan (JPM) weighed on the markets along with lingering uncertainty about the political situation in Europe. The major averages ended the session mixed, with the Nasdaq closing just above the unchanged line. While the Nasdaq edged up 0.18 points or less than a tenth of a percent to 2,933.82, the Dow dipped 34.44 points or 0.3 percent to 12,820.60 and the S&P 500 slid 4.60 points or 0.3 percent to 1,353.39. Despite the mixed performance on the day, the major averages all moved lower for the week. The Nasdaq fell by 0.8 percent, while the Dow and the S&P 500 dropped by 1.7 percent and 1.1 percent, respectively. The modestly lower close by the markets came as traders reacted negatively to JP Morgan's revelation of a $2 billion trading loss. JP Morgan said that since March 31, 2012, its Chief Investment Office has had hefty mark-to-market losses in its synthetic credit portfolio, which proved to be more risky than expected. CEO Jamie Dimon termed the losses "egregious" and "self inflicted." Traders also kept an eye on the latest developments in Greece, where lawmakers have struggled to form a coalition government and appear poised for a new round of elections.