Markets Rally as Speculation Grows that China and Europe Will Boost Stimulus Efforts, JPM Surges

Markets surged 1.5 percent on Friday as investors felt renewed hope that China and Europe will boost their stimulus efforts. China reported a lower than expected 7.6 percent GDP figure, marking its slowest growth in 3 years, which has many believing that the government will step in and try to jump start its economy. Shares of JPMorgan Chase & Co. (JPM) surged 5.8 percent as CEO Jamie Dimon said the company would likely see record earnings this year even after reporting a $4.4 billion trading loss in Q2. The S&P 500 erased all of its losses from earlier in the week after trading up 1.65 percent Friday.

Word on the Street

• Shares of Green Mountain (GMCR) fall by more than 7 percent as analysts cut its FY13 earnings estimate.
• Report: American consumer sentiment dropped again to its lowest level in seven months.
• Amazon (AMZN) plans to debut smartphone.
• Oil rises for the third straight day, but remains down 12 percent for the year.
• Pimco forecast that it expects real U.S. growth to be about 1.5 percent annually over the next ten years.
• Hewlett-Packard Co (HPQ) shares fall to their lowest level in over seven years as demand for printers is forecast to slow.
• Billionaire Naguib Sawiris agreed to buy Canada’s La Mancha Resources Inc. (LMA:CA) for $493 million.

Interesting Tidbits

• The Gmail logo was designed the night before it was launched.
• Microsoft (MSFT) made just $16,005 in revenue in its first year of operation.