US STOCKS-Wall St drops as bank earnings fail to cheer, media stocks drag

Reuters

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* JPMorgan, Citi beat estimates, but fail to excite * Media stocks tumble for second straight day * AT&T drops, drags on telecoms, after Q3 warning * Indexes down: Dow 0.17 pct, S&P 0.17 pct, Nasdaq 0.11 pct (Updates to open) By Sruthi Shankar Oct 12 (Reuters) - U.S. stocks fell on Thursday morning, dragged down by media companies, while results from JPMorgan and Citigroup failed to fuel the optimism that has driven indexes to record highs. JPMorgan JPM.N and Citigroup C.N , which had already talked down third-quarter expectations, reported earnings that were better than Wall Street estimates even as trading revenues fell. The shares of both companies were little changed. urn:newsml:reuters.com:*:nL4N1MN49Y urn:newsml:reuters.com:*:nL4N1MN3YL "After a long stretch of consecutive highs in the market, with earnings, even if they are slightly disappointing, or an even an aspect of earnings like bond trading at JPM, is more an excuse to selloff," said Scott Clemons, chief investment strategist for Brown Brothers Harriman in New York. With the S&P 500 up about 14 percent in 2017, investors are betting on strong earnings growth across the S&P 500. AT&T T.N tumbled 3.22 percent after the company said its third-quarter results took a hit from the string of hurricanes. urn:newsml:reuters.com:*:nL4N1MM5PY The company also said it lost video subscribers in the quarter. Brokerage Guggenheim downgraded Disney DIS.N and Viacom VIAB.O on worries over subscriber declines That sparked fresh jitters in a sector that was hit a day earlier by President Donald Trump's suggestion to challenge TV network licenses over 'fake news'. urn:newsml:reuters.com:*:nL2N1MM0W3 Comcast CMCSA.O fell 2.8 percent, Disney DIS.N fell 1 percent. Viacom sank 6.6 percent after warning that Charter Communications subscribers may lose access to its channels as the expiration looms for a distribution deal. urn:newsml:reuters.com:*:nL2N1MM2KC Clemons said earnings will probably heighten volatility, with lack of any other major developments to drive the market. At 9:37 a.m. ET (1337 GMT), the Dow Jones Industrial Average .DJI was down 38.19 points, or 0.17 percent, at 22,834.7, the S&P 500 .SPX was down 4.38 points, or 0.17 percent, at 2,550.86 and the Nasdaq Composite .IXIC was down 7.33 points, or 0.11 percent, at 6,596.22. Ten of the 11 major S&P indexes were lower, led by a more than 2 percent fall in the telecom services index .SPLRCL due to AT&T's declines. The biggest drag, however, was from the consumer discretionary sector .SPLRCD , which fell 0.57 percent, weighed down by media stocks. Energy stocks also fell, dragged down by a more than 1 percent drop in crude oil prices as U.S. fuel inventories rose despite efforts by OPEC to cut production. O/R General Motors GM.N fell 1.5 percent. The Wall Street Journal reported GM planned to cut production at a Detroit plant and lay off about 1,500 workers. urn:newsml:reuters.com:*:nL4N1MN4GS J.Jill JILL.N nearly halved to hit a record low of $4.96 after the women's fashion retailer slashed its third-quarter forecast. urn:newsml:reuters.com:*:nL4N1MM5GJ Declining issues outnumbered advancers on the NYSE by 1,472 to 983. On the Nasdaq, 1,294 issues fell and 965 advanced. (Reporting by Sruthi Shankar in Bengaluru; Editing by Savio D'Souza) ((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6749 6328; Reuters Messaging: sruthi.shankar.reuters.com@reuters.net)) Keywords: USA STOCKS/

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