how much more destruction before it hits the bottom.JPMorgan...

how much more destruction before it hits the bottom.
JPMorgan Chase & Co., Macy’s Inc. and American Express Co. sank at least 3.5 percent after the Commerce Department said purchases decreased 2.7 percent in December as job losses and dwindling access to credit forced consumers to reduce spending. Deutsche Bank AG fell 7.9 percent after the lender said it had a loss of 4.8 billion euros ($6.3 billion). The MSCI World Index slid 2.9 percent to 863.31 at 2:24 p.m. in New York. The index of 23 developed nations has lost 9.3 percent in the past six days as companies from Alcoa Inc. to Intel Corp. spurred concern the profit outlook is worsening, while the unemployment rate in the U.S. climbed to the highest level in almost 16 years. Europe’s Dow Jones Stoxx 600 Index slid 4.4 percent to 192.87, the most since Dec. 1. The Standard & Poor’s 500 Index lost 3.4 percent to 841.97. Citigroup Inc. fell 23 percent for the biggest drop. Wells Fargo & Co. slid as much as 6.9 percent after Atlantic Equities LLP said it may need to raise cash.

The benchmark for U.S. equities is down 42 percent since the beginning of last year as credit losses and writedowns topped $1 trillion in the worst financial crisis since the Great Depression and the U.S., Japan and Europe fell into the first simultaneous recessions since World War II. Volatility benchmarks in Europe and the U.S. rose to the highest levels in a month today as investors paid more for options to protect against stock declines. The Chicago Board Options Exchange Volatility Index, or VIX, added 17 percent to 50.66 and headed to its biggest gain since Dec. 1.

Investors bought corporate bonds, sending yields down from record highs. The extra payout investors demand to own security- system maker Tyco International Ltd.’s $750 million of 8.5 percent notes due in 2019 has narrowed to 5.3 percentage points, from 6.81 when they were sold Jan. 6. The spread on Volkswagen AG’s 1.5 billion euros ($2 billion) of 6.875 percent 2014 bonds has shrunk to 4.34 percentage points from 4.53 on Jan. 7. All 24 industry groups in the S&P 500 retreated at least 1.2 percent following the sixth consecutive monthly decrease in retail sales, the longest stretch of declines in records going back to 1992. JPMorgan lost 3.5 percent to $25.44. Macy’s tumbled 6.4 percent to $9.41. American Express fell 6.1 percent to $17.84 after the credit-card company that’s converting into a bank had its fourth-quarter profit estimate cut 23 percent to 33 cents a share by Barclays Plc on concern slowing consumer spending will hurt earnings.

Wells Fargo dipped 4 percent to $23.40 after Atlantic Equities said the biggest U.S. bank by stock-market value may need to raise $10 billion and cut its dividend after the acquisition of Wachovia Corp.
Citigroup slid $1.30 cents to $4.60, the lowest since Nov. 21, as Chief Executive Officer Vikram Pandit worked to unravel the financial-services empire following four straight quarters of losses. The company may sell its consumer-lending unit and rein in trading with the bank’s own capital after agreeing to cede control of its Smith Barney retail brokerage to Morgan Stanley, people familiar with the plan said.

Banks led declines after Deutsche Bank reported a fourth- quarter loss as the global financial crisis hurt debt and equity trading. Deutsche Bank fell 7.9 percent to 22.08 euros after the lender said it had a loss of 4.8 billion euros ($6.3 billion). HSBC Holdings Plc, Europe’s largest bank by market value, may have to raise as much as $30 billion and cut its dividend in the half as earnings sink, Morgan Stanley analysts said. Since the S&P 500 peaked this year on Jan. 6, industries with some of the worst earnings forecasts have led the decline. Retailers, whose profits analysts project will fall 20 percent this year, declined 12 percent, while semiconductor makers that are expected to show a 55 percent earnings slump are down 14 percent, according to data compiled by Bloomberg.
Metal producers fell after prices of copper and gold declined. Alcoa, the largest U.S. aluminum producer, slid 5.9 percent to $8.99. Freeport-McMoRan Copper & Gold Inc., the world’s second-largest copper producer, dropped 8.5 percent to $23.62. Copper slumped 4 percent after the retail sales report signaled that the U.S. recession is deepening, reducing metals demand. Gold fell third straight day, losing 0.9 percent.