JPMorgan Chase & Co. (JPM: sentiment, chart, options) is weighing heavy on the Dow Jones Industrial Average today, with the bank down 4% following a bearish note from Deutsche Bank. The brokerage firm slashed its price target on JPM from $37 to $34, and lowered its fiscal-year earnings per share estimates for 2009 and 2010. Deutsche Bank now expects the Dow component to earn $2.05 rather than $2.70 per share in 2009, and 2010 earnings are now projected at $2.20 per share, down from $2.55.

The adjusted estimates were part of a broader pessimistic note on the U.S. banking sector. Deutsche Bank expects loan losses for the group to rise by 3% by the end of 2010, and warned that such losses may even surpass the 3.4% levels seen during the Great Depression in 1934.

"Moreover, additional securities losses or tougher requirements from regulators and ratings agencies may constrain existing capital, potentially forcing a bank to limit balance sheet growth and/or pay dividends," noted Deutsche Bank.

Today's drop has JPM trading narrowly above round-number support at the 30 strike. Despite unprecedented fundamental and technical headwinds, the equity has closed just 2 weeks below this region since 2003.