Breaking News
0

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

Stock MarketsJan 11, 2019 20:40
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. 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

* Netflix jumps on analyst optimism ahead of earnings

* 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 lower on Friday as investors booked profits after a five-day rally and reset positions ahead of the earning season, which will begin with 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 of patience with interest rate hikes – added 6 percent to the S&P 500 .SPX , lifting it about 10 percent from the 20-month low it hit around Christmas.

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

The S&P financial index .SPSY was trading flat, shrugging off earlier losses. Citigroup Inc (NYSE:C) C.N , which will report earnings on Monday, rose 0.9 percent after agreeing to give shareholder ValueAct Capital more access to its books and board of directors. investors are going to be gauging them (banks) on a little bit of a broader economic base than normal, in that interest rates and Fed are going to have an impact," said Oviatt.

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

U.S. stocks took a severe beating in the last quarter of 2018 due to worries over trade, rate hikes and a slowdown in global growth, leaving investors worried that U.S. corporate profit may not match the roughly 25-percent growth rate in the first three quarters.

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

That is lower than the 20.1 percent growth estimated three months back as analyst cut forecasts after warnings from marquee companies, including Apple Inc AAPL.O and Macy's Inc M.N .

General Motors (NYSE:GM) GM.N bucked that trend on Friday with a strong earnings forecast for 2019, sending the automaker's shares surging 8.6 percent. 1:13 p.m. ET, the Dow Jones Industrial Average .DJI was down 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 and the Nasdaq Composite .IXIC was down 33.11 points, or 0.47 percent, at 6,952.96.

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

Netflix Inc NFLX.O , already up over 20 percent this year, rose another 3.5 percent on analysts' optimistic forecasts for subscriber growth ahead of its earnings next week. Blizzard Inc ATVI.O slid over 10 percent, the most on the S&P, after it transferred publishing rights for its "Destiny" video game franchise to Bungie. issues outnumbered decliners by a 1.02-to-1 ratio on the NYSE, while declining issues outnumbered advancers for a 1.01-to-1 ratio on the Nasdaq.

The S&P index recorded no new 52-week highs or lows, while the Nasdaq recorded 14 new highs and eight new lows.

US STOCKS-Wall St Street's five-day rally falters ahead of 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 Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
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?
 
Post
 
Replace the attached chart with a new chart ?
1000
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 Investing.com'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
or
Sign up with Email