Wall Street slips as bank, health stocks drag

By Yashaswini Swamynathan

(Reuters) - U.S. stocks were slightly lower on Wednesday, weighed down by losses in bank and healthcare stocks.

Oil prices fell 0.5 percent as an increase in U.S. crude inventories and a slump in Chinese demand implied that global oil markets remain oversupplied despite OPEC-led efforts to cut output. [O/R]

The S&P 500 financial index <.SPSY>, which has outperformed other sectors in a post-election rally, was down 0.83 percent and was on track for its third straight day of decline.

Healthcare <.SPXHC> was off 0.66 percent, dragged down by Gilead.

The drugmaker's stock , which also weighed on the S&P and the Nasdaq, was down 9.3 percent after the company projected disappointing sales for its hepatitis C drugs this year. [nL1N1FS1XQ]

 

However, the fourth-quarter earnings season is expected to end on a high note. Combined earnings of S&P 500 companies are estimated to have risen 8.2 percent - the most in nine quarters.

At 9:43 a.m. ET (1443 GMT), the Dow Jones Industrial Average <.DJI> was down 40.95 points, or 0.2 percent, at 20,049.34, the S&P 500 <.SPX> was down 5.31 points, or 0.23 percent, at 2,287.77 and the Nasdaq Composite <.IXIC> was down 17.04 points, or 0.3 percent, at 5,657.18.

Walt Disney was up 1.6 percent at $110.89 after Bob Iger said he was open to extending his term as chief executive officer. [nL4N1FS55W]

Cognizant rose 4 percent to $55.96 after the IT services provider named three directors to its board and announced a $3.4 billion share buyback program, bowing to pressure from activist shareholder Elliott Management. [nL4N1FT3JY]

U.S. carrier Alaska Air rose 2.5 percent to $96.23 after the company reported a 10.7 percent jump in quarterly revenue. [nL4N1FT3IP]

Declining issues outnumbered advancers on the NYSE by 1,684 to 946. On the Nasdaq, 1,657 issues fell and 698 advanced.

The S&P 500 index showed six new 52-week highs and three new lows, while the Nasdaq recorded 26 new highs and 18 new lows.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D'Silva)