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US STOCKS-Wall Street edges lower after mixed bank earnings, Trump comments


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* J.B. Hunt jumps after strong DCS performance

* Banking index marginally down

* Goldman Sachs rises after profit beat

* Dow flat, S&P down 0.19%, Nasdaq dips 0.25% (Updates to early afternoon)

By Medha Singh

July 16 (Reuters) - U.S. stocks were lower on Tuesday asresults from big Wall Street lenders rekindled concerns aboutslowing profit growth in a low interest rate environment, whilecomments from President Donald Trump on trade also soured themood.

JPMorgan Chase & CoJPM.N and Wells Fargo & CoWFC.N beat quarterly profit estimates but reported weaker net interestincome, pointing to rising deposit costs. urn:newsml:reuters.com:*:nL2N24H0LW

"Much of the outlook remains very unclear for the sector,with falling rates and the potential for further economicweakness in the United States," said Joshua Mahony, seniormarket analyst with IG in London.

JPMorgan was 0.3% higher in volatile trade, while WellsFargo slipped 3.1%. Goldman Sachs Group IncGS.N - the leastrate-sensitive of the three banks that reported results onTuesday - was up 1% after posting strong results.

The banking subsector .SPXBK dropped 0.86%, compared witha 0.34% fall in the S&P 500 financial index .SPSY .

The three indexes moved lower after Trump said there was along way to go with China on trade and threatened to put tariffson another $325 billion of Chinese goods. urn:newsml:reuters.com:*:nW1N21900R

"In a really quiet market, a headline like this has amagnified effect, so even if it's not something investors don'talready know, it can move the market with ease," said MichaelAntonelli, managing director, institutional sales trading atRobert W. Baird in Milwaukee.

But stocks pared most of those losses after Federal ReserveChair Jerome Powell reiterated pledges to "act as appropriate"to keep the U.S. economy humming. urn:newsml:reuters.com:*:nL2N24H0ZW

Investors will focus on the impact of U.S.-China tradetensions on second-quarter earnings. Profit at S&P 500 companiesis estimated to dip 0.1%, which would be the first quarterlydrop in three years, according to Refinitiv IBES data. J.B. Hunt Transport Services IncJBHT.O jumped 6%, thebiggest gainer on the benchmark S&P 500, after the truckingcompany posted strong quarterly performance in its secondlargest unit DCS, which provides final-mile delivery.

That helped lift the Dow Jones transport index .DJT 2.1%higher and aided a 0.77% rise in industrials .SPLRCI , one ofthe five major S&P sectors in positive territory.

At 13:14 p.m. ET, the Dow Jones Industrial Average .DJI was up 6.13 points, or 0.02%, at 27,365.29, the S&P 500 .SPX was down 5.66 points, or 0.19%, at 3,008.64 and the NasdaqComposite .IXIC was down 20.98 points, or 0.25%, at 8,237.21.

Johnson & JohnsonJNJ.N slipped 1.3% after the diversifiedhealthcare company warned that competition from generic andcopycat drugs could impact its third-quarter results. urn:newsml:reuters.com:*:nL4N24H2IQ

Economic data was a bright spot. A better-than-expected Juneretail sales report pointed to strong consumer spending. Thedata did not change the expectations of a rate cut this month,but lowered hopes of an aggressive cut. urn:newsml:reuters.com:*:nL2N24G0J9urn:newsml:reuters.com:*:nLNSGIEF75

Advancing issues outnumbered decliners by a 1.09-to-1 ratioon the NYSE and by a 1.03-to-1 ratio on the Nasdaq.

The S&P index recorded 53 new 52-week highs and one new low,while the Nasdaq recorded 67 new highs and 56 new lows. (Reporting by Medha Singh, Amy Caren Daniel and Uday Sampath inBengaluru; Editing by Sriraj Kalluvila and Anil D'Silva) ((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780,outside U.S. +91 80 6749 1130; Twitter: https://twitter.com/medhasinghs; Reuters Messaging: medha.singh.thomsonreuters.com@reuters.net))






This article appears in: Stocks , Banking and Loans , World Markets , Technology



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