Breaking News

US STOCKS-Wall St lower as investors await corporate earnings

Stock MarketsJan 11, 2019 19:30
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. US STOCKS-Wall St lower as investors await corporate earnings

* U.S. consumer prices post first drop in nine months

* GM surges on upbeat 2019 earnings outlook

* Drop in oil prices drags energy stocks lower

* Technology stocks weigh on S&P, Nasdaq

* Indexes down: Dow 0.41 pct, S&P 0.36 pct, Nasdaq 0.57 pct (Changes comment, adds details, updates prices)

By Sruthi Shankar

Jan 11 (Reuters) - U.S. stocks edged lower on Friday, as investors booked profits after a five-day rally and reset positions ahead of an earning season that begins next week.

The rally, which was powered by hopes of a China-U.S. trade deal, strong jobs data and dovish Federal Reserve views, added 6 percent to the S&P 500 .SPX and lifted it by about 10 percent from the 20-month low it touched around Christmas.

"We've run up and people seem to be in a wait-and-watch mode before they put more money back in," said Mark Grant, chief global strategist at B. Riley FBR Inc in Fort Lauderbale, Florida.

Big banks will kick off fourth-quarter earnings season, with Citigroup Inc (NYSE:C) C.N reporting on Monday, followed by big lenders JPMorgan (NYSE:JPM) JPM.N and Bank of America (NYSE:BAC) BAC.N .

The S&P 500 banks index .SPXBK was trading flat, with support from Citigroup's 1.0 percent rise after announcing more access to hedge fund ValueAct Capital. worries of a slowdown in global growth sparked a selloff in the final quarter of 2018, investors will parse the earnings reports and projections for signs of deceleration in the economy.

The S&P 500 companies on average are seen posting 14.5 percent growth in fourth-quarter profit, according to IBES data from Refinitiv. However, expectations for growth in 2019 are at 6.4 percent, down from 7.3 percent on Jan. 1.

General Motors (NYSE:GM) GM.N shares surged 8 percent after the No.1 U.S. automaker gave a strong earnings forecast for 2019, powered by its revamped and highly-profitable pickup truck lineup. Shares of Ford Inc F.N rose 1.7 percent. stands in sharp contrast to recent sales warnings from Apple Inc AAPL.O and Macy's Inc M.N due to weakness in the crucial holiday-quarter.

Data showed U.S. consumer prices fell for the first time in nine months in December amid a plunge in gasoline prices, but underlying inflation pressures remained firm as rental housing and healthcare costs rose steadily. 11:42 a.m. EDT the Dow Jones Industrial Average .DJI was down 98.41 points, or 0.41 percent, at 23,903.51, the S&P 500 .SPX was down 9.31 points, or 0.36 percent, at 2,587.33 and the Nasdaq Composite .IXIC was down 40.01 points, or 0.57 percent, at 6,946.06.

The technology stocks .SPLRCT which led the recent surge, fell 0.45 percent, dragging the S&P 500 and the Nasdaq lower. Microsoft Corp MSFT.O fell 1.6 percent and Apple Inc AMZN.O dropped 1.1 percent.

Netflix Inc's NFLX.O shares, which have jumped more than 20 percent this year, were up 3.6 percent, with analysts turning optimistic about subscriber trends ahead of its earnings next week. S&P industrial index .SPLRCI fell 0.50 percent, weighed down by 1.1 percent drop in Caterpillar (NYSE:CAT) CAT.N after Goldman Sachs (NYSE:GS) cut earnings forecast for 2018-2020. Blizzard Inc ATVI.O fell 9.5 percent, leading the decliners on the S&P 500, after the video game publisher transferred full publishing rights for its "Destiny" game franchise to video game developer Bungie. issues outnumbered advancers for a 1.50-to-1 ratio on the NYSE and for a 1.59-to-1 ratio on the Nasdaq.

The S&P index recorded no new 52-week highs and no new lows, while the Nasdaq recorded 13 new highs and 8 new lows.

US STOCKS-Wall St lower as investors await corporate earnings

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email