* World stock index turns negative after JPMorgan results
* JPMorgan reports profit but steep loan losses
* Dollar rise pushes euro down nearly 1 percent
(Updates with U.S. markets close)
By Al Yoon
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 Wall Street's 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 United States 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.
[]. Its shares fell more than 2 percent to
$43.68.
Equity gains were capped despite upbeat earnings from
chipmaker Intel Corp <INTC.O> late on Thursday. By the close of
trade in New York on Friday 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
Intel results, reversed to end down 1.1 percent. Banks bore the
brunt of selling. Earlier, Japan's Nikkei index <> rose
about 0.7 percent.
Buoyant profit numbers for JPMorgan were overshadowed by
loan losses and high bad-debt provisions.
"JPMorgan top-line (revenue) 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 100.90 points,
or 0.94 percent, to 10,609.65. The Standard & Poor's 500 Index
<.SPX> slid 12.43 points, or 1.08 percent, to 1,136.03 and the
Nasdaq Composite Index <> declined 28.75 points, or 1.24
percent, to 2,287.99.
Intel Corp <INTC.O>, another Dow component, 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 0.78 percent to $1.4389, compared with a
previous session close of $1.4502.
Against a basket of major currencies, the dollar rose 0.59
percent to 77.186 <.DXY>. Against the yen the dollar fell 0.41
percent to 90.77 yen.
The U.S. Labor Department report showing consumer prices
rose at a slower-than-expected pace in December helped fuel
gains in 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
0.06 percentage point to 3.68 percent, the lowest level since
mid-December.
(Additional reporting by Vivianne Rodrigues, Ellen Freilich
and Angela Moon in New York; Editing by Kenneth Barry)
