* Wall St ekes out gain on JPMorgan comments about profit
* China exports sag, weighing on dollar, world prospects
* Europe, Asian stocks end up as financials rise
(Adds close of U.S. markets)
By Walter Brandimarte and Herbert Lash
NEW YORK, March 11 (Reuters) - U.S. stocks eked out a
second day of gains on Wednesday after JPMorgan became the
second big bank to cite profitability, but oil slid 7 percent
on further signs of weak global demand and rising inventories.
U.S. government debt prices rallied on a revived safety bid
for lower-risk investments and as a sale of 10-year notes eased
supply worries, while the dollar fell on the lack of any new
fundamental economic news to prompt demand for the greenback
The dollar was also hurt by a Chinese trade report that
cast doubts on China's ability to finance the U.S. current
account deficit, which in the long run could weigh on the
dollar [].
Economic news again highlighted weakness in the world
economy, as Chinese exports tumbled, German factory orders fell
and prices slid in Japan.
"Unless we see some improvement in economic indicators we
are just going to bounce around in a wait-and-see mode," said
John McCarthy, director of foreign exchange trading at ING
Capital Markets in New York. "With equity markets bouncing we
could easily trend for a while."
But comments by JPMorgan Chase <JPM.N> Chief Executive
Jamie Dimon to CNBC television reversed a broad decline in
stocks and came after a speech in which he said the bank's bond
department had just had its two busiest months ever.
Dimon's comments that JPMorgan was profitable in January
and February echoed comments by Citigroup's chief executive,
Vikram Pandit, that had fired Tuesday's rally.
Dimon also said he sees "modest signs" of an economic
recovery, helping JPMorgan shares to rise 4.6 percent and
spuring a 3.1 percent advance in the KBW banking index <.BKX>.
Dimon "calmed the markets down, he was the voice of
reason," said Angel Mata, managing director of listed equity
trading at Stifel Nicolaus Capital Markets in Baltimore.
A broker recommendation that investors buy shares of
Hewlett-Packard <HPQ.N> pushed technology stocks higher and the
Nasdaq eneded up more than 1 percent.
The Dow Jones industrial average <> closed up 3.91
points, or 0.06 percent, at 6,930.40. The Standard & Poor's 500
Index <.SPX> added 1.76 points, or 0.24 percent, at 721.36. The
Nasdaq Composite Index <> gained 13.36 points, or 0.98
percent, at 1,371.64.
European stocks also rose for the second day but sentiment
remained fragile and trading was volatile as poor economic news
continued to make the headlines.
In Europe, the FTSEurofirst 300 index <> rose 0.25
percent to close at 692.65, supported by the financial sector.
The dollar fell against a basket of major currencies, with
the U.S. Dollar Index <.DXY> off 1.00 percent at 87.63. Against
the yen, the dollar <JPY=> fell 1.46 percent at 97.25.
The euro <EUR=> rose 1.39 percent at $1.2846.
The greenback was also pressured by news that China's
exports slid 25.7 percent in February from a year earlier,
sharply exceeding the forecast for a 5.0 percent drop.
[]
U.S. Treasury debt prices jumped after demand at a record
reopening of 10-year notes was not as weak as feared,
supporting the view of solid appetite for the government's
massive supply plan.
Doubts about the rebound on Wall Street spurred investors
to increase their safe-haven holdings in lower risk government
debt, traders and investors said..
"There was a sigh of relief that this auction went okay,"
said Tom Girard, who manages the $805 million MainStay Balanced
Fund in New York. "There's also concern that equities could
slide again."
The benchmark 10-year U.S. Treasury note <US10YT=RR> rose
24/32 to yield 2.92 percent. The 2-year U.S. Treasury note
<US2YT=RR> closed at break-even, to yield 1.02 percent.
Oil fell more than 7 percent to $42.33 per barrel on
further signs of weak global demand and rising inventories in
top consumer the United States.
U.S. government data showed crude stocks in the world's
largest energy consumer rose 700,000 barrels last week, while
overall products demand over the past four weeks dropped 2.1
percent against last year's levels. []
U.S. crude settled down $3.38 to $42.33 a barrel, while
London Brent crude fell $2.56 to $41.40 a barrel.
Spot gold prices <XAU=> rose $10.45, or 1.17 percent, to
$906.25.
(Additional reporting by Ellis Mnyandu, Gertrude
Chavez-Dreyfuss in New York; Editing by Leslie Adler)
