US STOCKS-Wall Street drops after tepid big bank results

Reuters

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    * Goldman Sachs, Citigroup fall after results
    * Financials post first drop in four sessions
    * Bank of America falls ahead of results on Tuesday
    * Indexes down: Dow 0.33 pct, S&P 0.32 pct, Nasdaq 0.47 pct

 (Updates prices to early afternoon)
    By Amy Caren Daniel
    April 15 (Reuters) - Wall Street's main indexes fell on
Monday, following a rally in the previous session that put the
S&P 500 within striking distance of its record high, as
underwhelming results from Goldman Sachs and Citigroup pressured
financial stocks.
    The sector  .SPSY  fell for the first time in four sessions,
down 0.75%, dragged lower by a 3.2% tumble in Goldman Sachs
Group Inc  GS.N  and a 0.7% dip in Citigroup Inc  C.N  after the
banks missed revenue estimates.  urn:newsml:reuters.com:*:nL3N21X2S0  urn:newsml:reuters.com:*:nL3N21X2XL
    The S&P banking index  .SPXBK  fell 1.12%, also weighed down
by a 1.6% drop in JPMorgan Chase  JPM.N . Bank of America
 BAC.N  dipped 1.4% ahead of results on Tuesday. 
    "With less-than-stellar Goldman results, despite the
bottom-line beat, it's not necessarily surprising to see
financials pulling back a little bit," said Michael James,
managing director of equity trading at Wedbush Securities in Los
Angeles.
    "Earnings and guidance need to be better than estimates for
the market strength to continue given the levels we are at now."
    Monday's reports come in contrast to JPMorgan's upbeat
earnings on Friday that eased worries of first-quarter earnings
season slamming the brakes on Wall Street's big rally back from
last year's slump. 
    The benchmark S&P 500 index  .SPX  is just about 1% away
from its September record closing high.
    On trade discussions, Reuters reported that U.S. negotiators
have tempered demands that China curb industrial subsidies as a
condition for a trade deal, while Treasury Secretary Steven
Mnuchin said he hoped the talks were approaching a final lap.
 urn:newsml:reuters.com:*:nL1N21V0BZ    
    At 12:09 p.m. ET, the Dow Jones Industrial Average  .DJI 
was down 86.50 points, or 0.33%, at 26,325.80. The S&P 500
 .SPX  was down 9.31 points, or 0.32%, at 2,898.10. The Nasdaq
Composite  .IXIC  was down 37.15 points, or 0.47%, at 7,947.02.
    Of the 33 S&P 500 companies that have reported results so
far, 81.8% have surpassed first-quarter earnings estimate, above
the average of past four quarters, according to Refinitiv data.
    Analysts expect S&P 500 companies to show a 2.1%
year-on-year decline in earnings, their first annual contraction
since 2016.
    In a bright spot, Waste Management Inc  WM.N  rose 2.7%
after the company said it would buy smaller rival Advanced
Disposal Services Inc  ADSW.N  for about $3 billion. Advanced
Disposal jumped 18.9%.  urn:newsml:reuters.com:*:nL3N21X0HG
    Boeing Co  BA.N  declined 1% as Brand consultancy firm Brand
Finance said negative publicity over the grounding of the
planemaker's 737 MAX jet is set to wipe $12 billion off the
company's brand value.  urn:newsml:reuters.com:*:nL5N21X368    
    Declining issues outnumbered advancers for a 1.37-to-1 ratio
on the NYSE and for a 1.95-to-1 ratio on the Nasdaq.
    The S&P index recorded 52 new 52-week highs and one new low,
while the Nasdaq recorded 64 new highs and 29 new lows.

 (Reporting by Amy Caren Daniel and Sruthi Shankar in Bengaluru;
Editing by Sriraj Kalluvila)
 ((Amy.CarenDaniel@thomsonreuters.com ; within U.S.
+1-646-223-8780; outside U.S. +91 80 6749 9250 ; Reuters
Messaging: Amy.CarenDaniel.thomsonreuters.com@reuters.net;))

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