Early Equity BUZZERS: JPM Could Lose $9 BILLION, Facebook and Family Dollar DROP

Shares of JPMorgan Chase and Co. (NYSE:JPM) fell 3.4 percent before the opening bell. The bank’s infamous trading loss may reach as high as $9 billion. The NY Times reports, “As JPMorgan has moved rapidly to unwind the position — its most volatile assets in particular — internal models at the bank have recently projected losses of as much as $9 billion. In April, the bank generated an internal report that showed that the losses, assuming worst-case conditions, could reach $8 billion to $9 billion, according to a person who reviewed the report.” Other banks such as Goldman Sachs (NYSE:GS) and Bank of America (NYSE:BAC) also declined more than 1 percent as Citigroup (NYSE:C) cut price targets.

Family Dollar Stores Inc. (NYSE:FDO) shares dropped 7 percent in pre-market trading. The company reported that net income for the third-quarter came in at $124.5 million ($1.06 per share), compared to $111.1 million (91 cents per share) a year earlier. However, it was the fifth consecutive quarter that the company saw shrinking gross margins, as they fell 0.4 percentage point from the year-earlier quarter to 35.8 percent. Over that time, margins have contracted on average 0.6 percentage point per quarter on a year-over-year basis.

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Facebook (NASDAQ:FB) shares declined 1.3 percent in early trading. Analysts from the investment banks that took the social media company public started their review of the stock with a cautionary word, sending shares tumbling. Underwriting banks began publishing their comments early Wednesday, with the consensus being that shares of the social network may need a year or more before regaining the offering price.

Despite surging almost 30 percent yesterday, Arena Pharmaceuticals Inc. (NASDAQ:ARNA) shares decreased 3.86 percent before the opening bell. On Wednesday, the company won approval by the Food and Drug Administration for its weight-loss drug lorcaserin. It is the first obesity medication cleared for sale in the United States in 13 years. “Obesity threatens the overall well being of patients and is a major public health concern,” Janet Woodcock, director of the FDA’s Center for Drug Evaluation and Research, said in a statement, according to Bloomberg. “The approval of this drug, used responsibly in combination with a healthy diet and lifestyle, provides a treatment option for Americans who are obese or are overweight and have at least one weight-related comorbid condition.”

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