US STOCKS-Wall St ends 4-day rally as economic outlook, corporate forecasts sour

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* IMF cuts global growth forecasts

* White House rejects preliminary trade talks with China -FT

* All 11 major S&P sectors in the red

* Indexes drop: Dow 1.61 pct, S&P 1.69 pct, Nasdaq 2.07 pct (Updates to late afternoon, changes dateline, byline)

By Stephen Culp

NEW YORK, Jan 22 (Reuters) - Wall Street ended its four-dayrally on Tuesday as a gloomy global economic growth outlook anddisappointing company forecasts dampened investor spirits at theheight of fourth-quarter reporting season.

All three major U.S. stock indexes extended their lossesafter the Financial Times reported the Trump administrationrejected an offer from China for preparatory talks ahead of nextweek's high-level trade negotiations. urn:newsml:reuters.com:*:nL1N1ZM18K

The International Monetary Fund trimmed its 2019 globaleconomic growth estimates on Monday urn:newsml:reuters.com:*:nL1N1ZL0EC, the same daydata from China confirmed the country's slowest economic growthrate in 28 years. urn:newsml:reuters.com:*:nL3N1ZL2CH

"There's so much in the background - trade, governmentshutdown, earnings season - you're going to have these bigswings in the markets based on the latest data," said PaulNolte, portfolio manager at Kingsview Asset Management inChicago.

"(Investors) are getting more bearish and less optimisticabout the outlook," Nolte added. "We had a momentum low onChristmas Eve and I think we'll wind up testing it over the nextcouple months or so."

The downbeat China news pulled chipmakers lower, with thePhiladelphia SE Semiconductor index .SOX falling 3.1 percent.

Each of the FAANG momentum stocks, a group which includesFacebook Inc FB.O , Apple IncAAPL.O , Amazon.comAMZN.O ,Netflix IncNFLX.O and Google parent Alphabet IncGOOGL.O ,were down between 1.7 and 4.6 percent.

Fears of a slowdown in corporate profits were exacerbated ascompanies posting fourth-quarter results provided disappointingforward-looking projections.

Johnson & JohnsonJNJ.N was down 2.3 percent after its2019 sales forecast fell short of analyst expectations. urn:newsml:reuters.com:*:nL1N1ZM0US

Shares of Stanley Black & Decker IncSWK.N slid followingits disappointing 2019 forecast, dropping 13.7 percent. urn:newsml:reuters.com:*:nL3N1ZM43M

The Dow Jones Industrial Average .DJI fell 398.96 points,or 1.61 percent, to 24,307.39, the S&P 500 .SPX lost 45.21points, or 1.69 percent, to 2,625.5 and the Nasdaq Composite .IXIC dropped 148.39 points, or 2.07 percent, to 7,008.84.

All 11 major sectors of the S&P 500 were in the red, withthe largest percentage losses coming from industrials .SPLRCI ,communications services .SPLRCL and tech .SPLRCT .

With just over 12 percent of S&P 500 companies havingreported thus far, 78.7 percent of have beat Streetexpectations. Analysts expect S&P 500 fourth quarter earningsgrowth of 14.1 percent, down from 20.1 percent on Oct. 1,according to Refinitiv data.

Oilfield services company Halliburton CoHAL.N dropped 3.2percent as falling oil prices LCOc1 and slowing U.S. demandweighed on its fourth-quarter results. urn:newsml:reuters.com:*:nL3N1ZM3IZ

Travelers Cos IncTRV.N reported better-than-expectedquarterly profit as premium hikes offset catastrophe losses suchas the California wildfires and Hurricane Michael. The stock wastrading lower, down 1.5 percent. urn:newsml:reuters.com:*:nL3N1ZM4B4

Amid the government shutdown-related dearth of U.S. economicdata, a report from the National Association of Realtors showedsales of existing homes in the United States fell in December totheir lowest level in three years. urn:newsml:reuters.com:*:nL1N1ZI1IR

The PHLX Housing index .HGX was down 1.9 percent.

Declining issues outnumbered advancing ones on the NYSE by a3.83-to-1 ratio; on Nasdaq, a 3.14-to-1 ratio favored decliners.

The S&P 500 posted 3 new 52-week highs and 1 new lows; theNasdaq Composite recorded 18 new highs and 26 new lows. (Reporting by Stephen CulpEditing by Nick Zieminski) ((stephen.culp@thomsonreuters.com; 646-223-6076;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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