US STOCKS-Futures dip after five-day surge

Reuters

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    * Futures down: Dow 0.09 pct, S&P 0.16 pct, Nasdaq 0.24 pct 

    By Sruthi Shankar
    Jan 11 (Reuters) - U.S. stock index futures dipped on
Friday, after rallying for the past five sessions on hopes of a
resolution in the U.S.-China trade dispute and assurances from
the Federal Reserve that it would be patient on interest rate
hikes.
    The steady start to 2019 has lifted the S&P 500  .SPX  by 
over 10 percent from a 20-month low it touched around Christmas
on hopes of a trade deal, strong data on U.S. jobs growth and 
dovish views from the Fed. The benchmark index's five-day
winning streak is its longest since September.
    Futures pointed to slight opening losses for the main three
indexes, but the Nasdaq Composite index  .IXIC  closed at a
level on Thursday that was only a couple of points away from its
50-day moving average, a level seen important for short-term
momentum.
    U.S. officials expect China's top trade negotiator may visit
Washington this month, signaling that higher-level discussions
are likely to follow this week's talks with mid-level officials
in Beijing.  urn:newsml:reuters.com:*:nL3N1ZA03L
    With big U.S. banks kicking off fourth-quarter earnings next
week, investors will watch for companies' views on economic
growth in 2019. Concerns about a slowdown in growth, in the wake
of the U.S.-China trade war and rising interest rates drove a
selloff in stocks in the final quarter of 2018.
    S&P 500 companies on average are seen posting 14.5 percent
growth in earnings per share as they report December-quarter
results, according to IBES data from Refinitiv. However,
expectations for growth in 2019 are at 6.4 percent, down from an
expectation of 7.3 percent on Jan. 1.
    At 7:37 a.m. ET, Dow e-minis  1YMc1  were down 21 points, or
0.09 percent. S&P 500 e-minis  ESc1  were down 4.25 points, or
0.16 percent and Nasdaq 100 e-minis  NQc1  were down 15.75
points, or 0.24 percent.
    Stocks got a small boost on Thursday after Powell reiterated
that the U.S. central bank can be patient in approving any
further rate increases as officials gauge whether the U.S.
economy will slow this year, as some in financial markets worry.
 urn:newsml:reuters.com:*:nL1N1ZA1MY
    Investors will watch for signs of inflation in the latest
Labor Department report that is likely to show consumer prices
dipped 0.1 percent in December after a flat reading the previous
month.
    Among stocks, Starbucks Corp  SBUX.O  fell 2.4 percent after
Goldman Sachs downgraded the stock to "neutral", citing concerns
about China. Goldman also cut rating on Yum Brands Inc  YUM.N 
to "sell", pointing to peak valuation. Its shares slipped 3.0
percent.  urn:newsml:reuters.com:*:nL3N1ZB3BR
    Activision Blizzard Inc  ATVI.O  declined 6.5 percent after
the video game publisher transferred full publishing rights for
its "Destiny" game franchise to video game developer Bungie.
 urn:newsml:reuters.com:*:nL3N1ZB3H2
    Netflix Inc's  NFLX.O  shares, which have leapt more than 20
percent this year, were up 2.7 percent, with Credit Suisse
raising quarterly subscriber additions estimates ahead of its
earnings next week.
    PG&E Corp  PCG.N  dropped 4.6 percent after Moody's joined
S&P in lowering the utility's credit rating deeper into junk
territory as the California power provider faces billions of
dollars in liabilities related to wildfires.  urn:newsml:reuters.com:*:nL3N1ZA52U

 (Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak
Dasgupta)
 ((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))

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