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Wall Street lower as investors await corporate earnings


By Sruthi Shankar

(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 and lifted it by about 10 percent from the 20-month low it touched around

"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, at in Fort Lauderbale,

will kick off fourth-quarter earnings season, with reporting on Monday, followed by big lenders and

The S&P 500 banks index was trading flat, with support from Citigroup's 1.0 percent rise after announcing more access to hedge fund

After 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

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.

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 rose 1.7 percent.

This stands in sharp contrast to recent sales warnings from and 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 rose steadily.

At 11:42 a.m. EDT the was down 98.41 points, or 0.41 percent, at 23,903.51, the S&P 500 was down 9.31 points, or 0.36 percent, at 2,587.33 and the Composite was down 40.01 points, or 0.57 percent, at 6,946.06.

The which led the recent surge, fell 0.45 percent, dragging the S&P 500 and the lower. fell 1.6 percent and dropped 1.1 percent.

Netflix Inc's 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.

The S&P industrial index fell 0.50 percent, weighed down by 1.1 percent drop in after cut earnings forecast for 2018-2020.

fell 9.5 percent, leading the decliners on the S&P 500, after the transferred full publishing rights for its "Destiny" game franchise to video Bungie.

Declining issues outnumbered advancers for a 1.50-to-1 ratio on the NYSE and for a 1.59-to-1 ratio on the

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.

(Reporting by in Bengaluru; Editing by and Arun Koyyur)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 11 2019. 23:01 IST