US STOCKS-Wall St Street's five-day rally falters ahead of earnings

Reuters

Warning: This material has been prepared by a third party company, Reuters, which is independent of Davy. Davy has not reviewed the material and accepts no responsibility for errors or omissions, or for the information or opinions contained therein. It does not constitute investment advice.

    * Financial stock flat ahead of bank earnings next week
    * Energy stocks log biggest losses as oil prices drop
    * GM surges on upbeat 2019 earnings outlook 
    * Netflix jumps on analyst optimism ahead of earnings
    * Indexes dip: Dow 0.42 pct, S&P 0.34 pct, Nasdaq 0.47 pct

 (Changes comment, adds details, updates prices)
    By Sruthi Shankar
    Jan 11 (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  C.N , which will report
earnings on Monday, rose 0.9 percent after agreeing to give
shareholder ValueAct Capital more access to its books and board
of directors.  urn:newsml:reuters.com:*:nL1N1ZB0MU
    "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  LCOc1  dropped after nine days of gains.  O/R 
    U.S. stocks took a severe beating in the last quarter of
2018 due to worries over trade, rate hikes and a slowdown in
global growth, leaving investors worried that U.S. corporate
profit may not match the roughly 25-percent growth rate in the
first three quarters.
    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.
    That is lower than the 20.1 percent growth estimated three
months back as analyst cut forecasts after warnings from marquee
companies, including Apple Inc  AAPL.O  and Macy's Inc  M.N .
    General Motors  GM.N  bucked that trend on Friday with a
strong earnings forecast for 2019, sending the automaker's
shares surging 8.6 percent.  urn:newsml:reuters.com:*:nL3N1ZB3X2
    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  MSFT.O  was down 1.8 percent
and Apple dropped 1.2 percent.
    Netflix Inc  NFLX.O , already up over 20 percent this year,
rose another 3.5 percent on analysts' optimistic forecasts for
subscriber growth ahead of its earnings next week.  urn:newsml:reuters.com:*:nL3N1ZB3KW
    Activision Blizzard Inc  ATVI.O  slid over 10 percent, the
most on the S&P, after it transferred publishing rights for its
"Destiny" video game franchise to Bungie.  urn:newsml:reuters.com:*:nL3N1ZB3H2
    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.    

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

Warning: This content may be provided by regulated and unregulated entities and is not created, reviewed or endorsed by Davy. It is provided for general information purposes only and does not constitute a recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Importantly, it does not constitute investment advice, as it does not contemplate the personal circumstances of any particular person or group of persons. Neither Davy nor the providers of the Third Party Content will be liable for any investment decision made based on the reliance on or use of such data, or any liability that may arise due to delays or interruptions in the delivery of the Third Party Content for any reason.