JPMorgan CEO Dimon said the firm is suspending its share repurchases to boost capital for Basel III, but intends to maintain its dividend. Guggenheim cut its price target on the company to $50 from $53, while JMP slashed its rating on the firm to "underperform" from "market perform." Meanwhile, Citigroup added the company to its "top picks" list and maintained its "buy" rating.
Among other large financials, JMP Securities also cut its ratings on BofA , Goldman Sachs and Morgan Stanley to "market underperform" from "market perform." In addition, Guggenheim lowered its price target on Wells Fargo to $40 from $43.
European shares rebounded from five-month lows, but ongoing uncertainties surrounding Greece kept a lid on gains. Over the weekend, the Group of Eight world leaders reiterated that they want Greece to remain in the single currency union.
German Chancellor Angela Merkel may come under further pressure at an informal EU summit Wednesday, where France’s new president Francois Hollande may renew his call from the weekend for the establishment of euro zone-backed Eurobonds and seek support from other European leaders for the proposal.
“There’s a short term process to keep watching and that is what happens to the ATM machines in Athens,” warned Art Cashin, director of floor operations at UBS Financial Services. “If people start pulling their money out rapidly in Athens and Spain, it becomes a bank run—it’s completely out of the hands of the leadership—and it becomes a crisis instantly.
Yahoo gained after news that Chinese Internet entrepreneur Jack Ma is buying back up to half of a 40 percent stake in his Alibaba Group from Yahoo for $7.1 billion, in a deal that moves the Chinese e-commerce leader closer to a public listing.
Among earnings, Lowe's tumbled after the home-improvement retailer slashed its fiscal-year earnings outlook, adding that demand has slowed. And Campbell Soup topped earnings expectations but left its full-year guidance unchanged.
Cooper Industries surged after Eaton said it will acquire the electrical equipment maker for $11.8 billion in cash and stock.
—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter:
Coming Up This Week:
TUESDAY: Existing home sales, 2-yr note auction, Atlanta Fed's Lockhart speaks, Arkansas/Kentucky Primaries; Earnings from AutoZone, Best Buy, Medtronic, Dell, Take Two
WEDNESDAY: Weekly mortgage apps, FHFA home price index, oil inventories, 5-yr note auction, Minneapolis Fed's Kocherlakota speaks, CME shareholders mtg, Kraft shareholders mtg; Earnings from Hewlett-Packard, Big Lots, Toll Brothers, NetApp, Pandora
THURSDAY: Durable goods orders, jobless claims, 7-yr note auction, BlackRock shareholders mtg, Goldman Sachs shareholders mtg, McDonald's shareholders mtg; Earnings from Costco, Tiffany
FRIDAY: Consumer sentiment, USDA food prices outlook
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