By Sruthi Shankar
(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
"Most 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
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.
At 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
Activision Blizzard Inc
Advancing 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.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)