US STOCKS-S&P 500 eases from record on tech retreat, Wells Fargo slide

Reuters

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    * JPMorgan, Citi rise on fourth-quarter profit beat
    * Wells Fargo slides as legal costs hit earnings
    * Delta Air Lines gains on profit beat; peers rise
    * Indexes: Dow up 0.34%, S&P off 0.08%, Nasdaq down 0.17% 

 (Changes comment, updates prices)
    By Sruthi Shankar
    Jan 14 (Reuters) - The S&P 500 eased from record levels on
Tuesday, as technology stocks handed back gains made on hopes of
a preliminary U.S.-China trade deal and Wells Fargo slid in a
mixed start to big banks' quarterly earnings.
    Kicking off the fourth-quarter earnings season, the largest
U.S. bank, JPMorgan Chase & Co  JPM.N , rose 2.3% after
reporting a better-than-expected profit on strength in its
trading and underwriting businesses, keeping the blue-chip Dow
index in the positive territory.  urn:newsml:reuters.com:*:nL4N29J2WR
    Wells Fargo & Co  WFC.N  dropped 3.7% after reporting a
slump in profit, as it set aside $1.5 billion toward legal
expenses, while Citigroup Inc  C.N  rose 2.3% as it topped Wall
Street profit estimates.  urn:newsml:reuters.com:*:nL4N29J366  urn:newsml:reuters.com:*:nL4N29J38H
    The S&P 500 banks index  .SPXBK  was up 0.9%. 
    Technology and internet stocks that took the main indexes to
record highs on Monday - Amazon.com Inc  AMZN.O , Apple Inc
 AAPL.O , Nvidia Corp  NVDA.O  and Facebook Inc  FB.O  - shed
between 0.4% and 1%. 
    Analysts expect profits at S&P 500 companies to drop 0.5%
for the second consecutive quarter, according to Refinitiv IBES
data, largely due to a drag in energy and industrial earnings
that have been hit by a prolonged trade war.
    China has pledged to buy nearly an additional $80 billion of
manufactured goods from the United States over the next two
years, and over $50 billion more in energy supplies, Reuters
reported, citing a source briefed on the trade deal that is
expected to be signed on Wednesday.  urn:newsml:reuters.com:*:nL1N29J03H
    "Market and company reactions to this deal, even if it works
out imperfectly and ultimately with a smaller magnitude or a
slower actual adjustment to stated goals, will still be largely
positive," said Jim Paulsen, chief investment strategist at
Leuthold Group in Minneapolis.
    "Just having China and the U.S. talking and changing
behaviors will likely be perceived as a huge step toward a
greater future."
    At 11:19 a.m. ET, the Dow Jones Industrial Average  .DJI 
was up 97.77 points, or 0.34%, at 29,004.82, the S&P 500  .SPX 
was down 2.55 points, or 0.08%, at 3,285.58 and the Nasdaq
Composite  .IXIC  was down 15.43 points, or 0.17%, at 9,258.50.
    Delta Air Lines Inc  DAL.N  rose 3.9% after reporting a
better-than-expected quarterly profit, boosted by customers
gained from rival airlines' 737 MAX cancellations. The S&P 1500
airlines index  .SPCOMAIR  rose 2.3%.  urn:newsml:reuters.com:*:nL1N29I14D
    Advancing issues outnumbered decliners by a 1.16-to-1 ratio
on the NYSE and a 1.08-to-1 ratio on the Nasdaq.
    The S&P index recorded 48 new 52-week highs and no new lows,
while the Nasdaq recorded 108 new highs and 21 new lows.

 (Reporting by Sruthi Shankar in Bengaluru; additional reporting
by Herbert Lash in New York; Editing by Shounak Dasgupta and
Maju Samuel)
 ((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223
8780; outside U.S. +91 80 6749 6328;))

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