Hello friends and Fortune readers.
Wednesday has kicked off with a mid-week slump in the markets. U.S. stock futures are falling, while European and Asian markets are down slightly. This comes after Tuesday’s wild session on Wall Street when the Dow rallied almost 300 points, dropped almost 150 points, and then closed slightly lower.
Commodities are also under pressure today. Crude oil futures are continuing their decline this morning, dropping to $45.76 a barrel. And the price of copper — a metal that’s seen as an indicator of economic health — is trading at a 5-year low.
In economic news, a gauge of U.S. consumer spending unexpectedly fell in December. U.S. retail sales recorded their largest decline in 11 months as demand fell almost across the board, tempering expectations for a sharp acceleration in consumer spending in the fourth quarter.
Here’s what else you need to know today.
1. JPMorgan Chase hit by more legal costs.
Earnings season is moving into high gear with major banks reporting results. Earlier, JPMorgan reported its fourth-quarter earnings this morning, and the results took analysts by surprise. The biggest U.S. bank by assets revealed a 6.6% drop in quarterly profit as its hit by legal costs of nearly $1 billion following government probes into possible wrongdoing. JPMorgan (JPM) also had to set aside additional funds to cover bad loans. The bank’s profits fell to $4.93 billion, or $1.19 a share, from $5.28 billion, or $1.30 a share, a year earlier.
2. Etsy is prepping for an IPO.
The Brooklyn-based online seller of crafts and vintage goods plans to raise $300 million when it takes the company public, which could be as soon as this quarter, reported Bloomberg. The offering would be the biggest technology IPO to come out of New York since 1999 when the dot-com bubble fueled high-valued IPOs from online broker TD Waterhouse Group and Barnesandnoble.com.
3. The major tech companies settle antitrust lawsuit.
Google (GOOG), Apple (AAPL), Adobe (ADBE) and Intel (INTC) reached a deal to end a U.S. antitrust lawsuit, which accused the firms of conspiring to prevent poaching of employees. Tech workers who brought the suit said the companies limited job mobility and, therefore, helped dampen salary growth. The four tech giants agreed to pay an undisclosed sum after a judge had previously rejected a $324.5 million settlement, saying it was too low.
4. World Bank lowered global growth outlook.
The World Bank has lowered its worldwide economic growth expectations for 2015 and 2016 due to struggling regions around the world, including Europe and Japan. The plummeting price of oil isn’t enough to offset these slowing economies, the bank said. Global growth is expected to reach 3% this year, below a previous forecast of 3.4% made in June. Growth in 2016 is expected to reach 3.3%, down from a previously anticipated 3.5% expansion.
5. Chipotle has a carnitas shortage.
Chipotle is dealing with a pork shortage that has left a third of its restaurants without carnitas. The company suspended a supplier that violated its standards concerning the proper housing of pigs. Chipotle (CMG) requires its suppliers to raise pigs in humane conditions, which includes access to the outdoors. The “fast casual” restaurant chain discovered the violation through a routine audit on Friday and doesn’t yet have a timeline for when the meat topping will return to affected stores.
—Reuters contributed to this report.
