Market Minute: JPMorgan Sued by California Over Credit Card Robosigning


California regulators take aim at JPMorgan, and Amazon tries 3D, without the glasses.

The S&P 500's streak of five straight record high has ended. The index fell 6 points yesterday, the Dow Industrials lost 22, and the Nasdaq lost 4.

A pedestrian walks past JP Morgan Chase & Co. Headquarters in New York, U.S., on Friday, May 11th, 2012. Photographer: Peter Foley/Bloomberg *** Local Caption ***
Peter Foley/Bloomberg

JPMorgan Chase (JPM) has been sued by the state of California for allegedly using robo-signing and other illegal practices to collect debts from 100,000 credit card holders in the state. The charges are similar to those that plagued the home foreclosure process a few years ago.

Amazon (AMZN) is going 3D. The Wall Street Journal reports the company is expanding its line of electronics beyond the Kindle. A smartphone in development will allow users to see three-dimentional images without using special glasses. Amazon has also been working on a new set-top box.

Separately, the Journal says Microsoft's (MSFT) effort to produce a set-top box for video streaming and other entertainment is now uncertain.

There are also reports that Apple's (AAPL) effort to launch a music streaming service has hit a snag over much it will pay in royalties.

Two of Dell's (DELL) largest shareholders are offering an alternate to the company's $24 billion bid to go private. Billionaire Carl Icahn and Southeastern Asset Management will offer shareholders a complex deal that includes cash, stock and new debt.

Priceline (PCLN) is booking flights, hotels and healthy profits. Its quarterly net jumped 34 percent, easily beating expectations. But the company warns of economic uncertainty in some regions, and intense competition in the online travel business.

Shares of Molycorp (MCP) are set to rally. Its quarterly loss was not nearly as bad as expected. Molycorp is a leading miner for rare earth minerals.

Shares of Gap (GPS) are set to rally after the retailer said its earnings will sail past Street expectations.

And as expected, Google's (GOOG) YouTube unit is testing out a subscription service for certain channels of video. It will cost 99¢ a month or more to view channels such as Sesame Street and Ultimate Fighting Championship.

–Produced by Drew Trachtenberg