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Wall Street's five-day rally flickers out as earnings near


By Noel Randewich

(Reuters) - dipped slightly on Friday, breaking a five-session rally, as 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 <.SPX> and left it up about 10 percent from the 20-month low it hit around

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, at in "We're just drifting."

The S&P was off 0.63 percent, leading declines among 11 sectors, as dropped after nine days of gains. [O/R]

The financial index <.SPSY> climbed 0.17 percent. Inc , which will report earnings on Monday, rose 0.44 percent after agreeing to give shareholder more access to its books and board of directors.

& 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 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.

gave a strong earnings forecast for 2019, sending the automaker's shares surging 7.05 percent.

The <.DJI> ended down 0.02 percent at 23,995.95 points, while the <.IXIC> dropped 0.21 percent to 6,971.48.

The S&P 500 <.SPX> 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.

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.

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 favoured advancers.

The S&P 500 posted no new 52-week highs and no new lows; the 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 days.

(Additional reporting by in Bengaluru; editing by Bill Berkrot)

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

First Published: Sat, January 12 2019. 03:43 IST