Politics

US STOCKS-Wall St Street's five-day rally falters ahead of earnings

* Financial stock flat ahead of bank earnings next week

* Energy stocks log biggest losses as oil prices drop

* GM surges on upbeat 2019 earnings outlook

* Indexes dip: Dow 0.42 pct, S&P 0.34 pct, Nasdaq 0.47 pct (Changes comment, adds details, updates prices)

By Sruthi Shankar

Jan 11 (Reuters) - U.S. stocks edged about 0.4 percent loweron Friday as investors booked profits after a five-day rally andreset positions ahead of the earning season, which will beginwith big Wall Street banks next week.

The rally - built on optimism over China-U.S. trade talks,strong U.S. jobs data and the Federal Reserve's promise ofpatience with interest rate hikes - added 6 percent to the S&P500 .SPX , lifting it about 10 percent from the 20-month low ithit around Christmas.

"We're viewing today a little bit of a breather. The factthat we've been up so many days in a row, it's not surprising tosee a little bit of a break," said Chad Oviatt, director ofinvestment management at Huntington Private Bank in Columbus,Ohio.

The S&P financial index .SPSY was trading flat, shruggingoff earlier losses. Citigroup IncC.N , which will reportearnings on Monday, rose 0.9 percent after agreeing to giveshareholder ValueAct Capital more access to its books and boardof directors. urn:newsml:reuters.com:*:nL1N1ZB0MU

"Most investors are going to be gauging them (banks) on alittle bit of a broader economic base than normal, in thatinterest rates and Fed are going to have an impact," saidOviatt.

The consumer staples .SPLRCS and real estate sectors .SPLRCR logged slight gains. Nine of the 11 major S&P sectorswere lower, led by the energy index's .SPNY 0.9 percent fallas oil prices LCOc1 dropped after nine days of gains. O/R

U.S. stocks took a severe beating in the last quarter of2018 due to worries over trade, rate hikes and a slowdown inglobal growth, leaving investors worried that U.S. corporateprofit may not match the roughly 25-percent growth rate in thefirst three quarters.

The S&P 500 companies on average are estimated to haveposted 14.5 percent growth in fourth-quarter profit, accordingto IBES data from Refinitiv.

That is lower than the 20.1 percent growth estimated threemonths back as analyst cut forecasts after warnings from marqueecompanies, including Apple IncAAPL.O and Macy's IncM.N .

General MotorsGM.N bucked that trend on Friday with astrong earnings forecast for 2019, sending the automaker'sshares surging 8.6 percent. urn:newsml:reuters.com:*:nL3N1ZB3X2

At 1:13 p.m. ET, the Dow Jones Industrial Average .DJI wasdown 100.19 points, or 0.42 percent, at 23,901.73, the S&P 500 .SPX was down 8.71 points, or 0.34 percent, at 2,587.93 andthe Nasdaq Composite .IXIC was down 33.11 points, or 0.47percent, at 6,952.96.

Technology stocks .SPLRCT , which led the recent surge,fell 0.5 percent as Microsoft CorpMSFT.O was down 1.8 percentand Apple dropped 1.2 percent.

Netflix IncNFLX.O , already up over 20 percent this year,rose another 3.5 percent on analysts' optimistic forecasts forsubscriber growth ahead of its earnings next week. urn:newsml:reuters.com:*:nL3N1ZB3KW

Activision Blizzard IncATVI.O slid over 10 percent, themost on the S&P, after it transferred publishing rights for its"Destiny" video game franchise to Bungie. urn:newsml:reuters.com:*:nL3N1ZB3H2

Advancing issues outnumbered decliners by a 1.02-to-1 ratioon the NYSE, while declining issues outnumbered advancers for a1.01-to-1 ratio on the Nasdaq.

The S&P index recorded no new 52-week highs or lows, whilethe Nasdaq recorded 14 new highs and eight new lows. (Reporting by Sruthi Shankar in Bengaluru; Editing by ShounakDasgupta and Arun Koyyur) ((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 2238780; outside U.S. +91 80 6749 6328; Reuters Messaging:sruthi.shankar.reuters.com@reuters.net))


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

In This Story

AAPL

Other Topics

Stocks World Markets US Markets

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More