US STOCKS-Banks drag S&P, Dow lower; Netflix caps Nasdaq losses

* BofA, Goldman Sachs slip after quarterly results

* Harley-Davidson falls after cutting shipments forecast

* Netflix hits record high on robust subscriber growth

* Dow down 0.46 pct, S&P off 0.14 pct, Nasdaq up 0.07 pct
(Adds details, changes comment, updates prices)

By Tanya Agrawal

July 18 (Reuters) – The S&P and the Dow were lower in late
morning trading on Tuesday, weighed by tepid earnings from big
banks and a setback to President Donald Trump’s pro-growth
legislative agenda after Republican effort to overhaul
healthcare collapsed.

Losses on the Nasdaq were limited by a 12 percent jump in
Netflix to a record high, following the video streaming
company’s robust subscriber growth.

Shares of Bank of America slipped 1.6 percent
weighing on the S&P, while Goldman Sachs’ 2.6 percent
fall dragged the Dow.

Last week, shares of JPMorgan, Wells Fargo
and Citigroup had taken a beating after their quarterly
results and forecasts failed to excite investors.

The S&P healthcare sector was under pressure,
falling 0.52 percent, after the healthcare bill to replace
Obamacare sank in the Senate, as Republicans remained divided on
how to repeal and replace the Affordable Care Act.

The failure of the bill spelled uncertainty for President
Donald Trump’s agenda of tax reform and an infrastructure
overhaul, leaving the president without any major legislative
accomplishments six months into his tenure.

“The healthcare bill not coming through raises some
continued concerns about the ability of Washington to push
through favorable fiscal policies,” said Lisa Kopp, head of
traditional investments at U.S. Bank Wealth Management.

News about the bill’s collapse sent the U.S. dollar
to a 10-month low against a basket of major currencies.

UnitedHealth Group fell 0.8 percent and along with
Goldman Sachs, shaved off 51 points from the Dow.

At 11:04 a.m. ET (1504 GMT), the Dow Jones Industrial
Average was down 98.46 points, or 0.46 percent, at
21,531.26, the S&P 500 was down 3.54 points, or 0.14
percent, at 2,455.60.

The Nasdaq Composite was up 4.29 points, or 0.07
percent, at 6,318.72.

Seven of the 11 major S&P 500 sectors were lower, with the
financial index’s 0.61 percent fall leading the
decliners.

The market will be keeping a close eye on corporate results
to see if the high valuations are justified in the face of mixed
economic data, tepid inflation and policy gridlock in
Washington.

“With valuation where they are, it is really important for
earnings to come through for the market to retain their momentum
and push upwards,” said Kopp.

Analysts are estimating an 8.2 percent rise in
second-quarter earnings for the S&P 500 companies from a year
earlier.

This follows a robust first quarter when U.S. companies
posted their best earnings since 2011, according to Thomson
Reuters I/B/E/S.

Harley-Davidson slumped 9.5 percent after the
motorcycle maker cut its 2017 shipments forecast. [nL3N1K93ZT

Declining issues outnumbered advancers on the NYSE by 1,728
to 1,008. On the Nasdaq, 1,747 issues fell and 931 advanced.
(Reporting by Tanya Agrawal; Editing by Arun Koyyur)


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