Wall Street's five-day rally flickers out as earnings near
* Financial stocks flat ahead of bank earnings next week
* Energy stocks log biggest losses as oil prices drop
* GM surges on upbeat 2019 earnings outlook
* Indexes end down: Dow 0.02 pct, S&P 500 0.01 pct, Nasdaq
(Updates to close)
By Noel Randewich
Jan 11 (Reuters) - Wall Street dipped slightly on Friday,
breaking a five-session rally, as energy shares declined and
investors looked ahead to earnings season, which kicks off next
week with Citigroup, JPMorgan and other big banks.
Underpinned by optimism over China-U.S. trade talks and
expectations of a slow pace of interest rate hikes from the
Federal Reserve, the stock market's winning streak through
Thursday added 6 percent to the S&P 500 and left it up
about 10 percent from the 20-month low it hit around Christmas.
The S&P 500 on Friday ended down just 0.01 percent after
recovering from a loss of 0.74 percent earlier in the session.
"We've clawed our way back and now the market is just
waiting ahead of the start of earnings season next week," said
Donald Selkin, Chief Market Strategist at Newbridge Securities
in New York. "We're just drifting."
The S&P energy index was off 0.63 percent, leading
declines among 11 sectors, as oil prices dropped after
nine days of gains.
The financial index climbed 0.17 percent. Citigroup
Inc, which will report earnings on Monday, rose 0.44
percent after agreeing to give shareholder ValueAct Capital more
access to its books and board of directors.
JPMorgan Chase & Co, which reports on Tuesday,
declined 0.48 percent. Some bargain hunters are betting on a
stronger 2019 for banks after the S&P 500 bank index
fell 18.4 percent in 2018.
U.S. stocks took a severe beating in the last quarter of
2018 due to worries over trade, interest rate hikes and a
slowdown in global growth.
Analysts expect S&P 500 companies' earnings per share to
grow by 6.4 percent this year, compared with 23.5 percent in
2018, when they were supercharged by newly enacted corporate tax
cuts, according to IBES data from Refinitiv.
General Motors gave a strong earnings forecast for
2019, sending the automaker's shares surging 7.05 percent.
The Dow Jones Industrial Average ended down 0.02
percent at 23,995.95 points, while the Nasdaq Composite
dropped 0.21 percent to 6,971.48.
The S&P 500 ended down 0.38 points at 2,596.26.
For the week, the S&P 500 rose 2.5 percent, the Dow added
2.4 percent and the Nasdaq picked up 3.4 percent.
Netflix Inc rose 3.98 percent, bringing its gain in
2019 to 26 percent, helped by analysts' optimistic forecasts for
subscriber growth ahead of its earnings next week.
Activision Blizzard Inc slumped 9.37 percent, the
most on the S&P 500, after it transferred publishing rights for
its "Destiny" video game franchise to Bungie.
Advancing issues outnumbered declining ones on the NYSE by a
1.23-to-1 ratio; on Nasdaq, a 1.18-to-1 ratio favored advancers.
The S&P 500 posted no new 52-week highs and no new lows; the
Nasdaq Composite recorded 20 new highs and 9 new lows.
Volume on U.S. exchanges was 6.8 billion shares, compared
with the 8.9 billion-share average over the last 20 trading
(Additional reporting by Sruthi Shankar in Bengaluru; editing
by Bill Berkrot)
First Published: 2019-01-11 14:55:20
Updated 2019-01-11 23:39:49
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