US STOCKS-Goldman weighs on Dow; Netflix helps cap S&P, Nasdaq losses

* BofA, Goldman Sachs slip after quarterly results

* Harley-Davidson falls on shipments forecast cut

* Netflix hits record high on robust subscriber growth

* Dow down 0.39 pct, S&P off 0.09 pct, Nasdaq up 0.16 pct
(Updates to early afternoon)

By Tanya Agrawal

July 18 (Reuters) – The Dow was dragged lower in early
afternoon trading on Tuesday by a drop in Goldman Sachs, but
losses on the S&P 500 and the Nasdaq were limited by a jump in
Netflix’s shares.

Netflix rose 14.3 percent to hit a record high,
following the video streaming company’s robust subscriber

However, Goldman Sachs reported a 40 percent drop in
bond trading revenue, driving its shares lower by 2.3 percent
and weighing on the Dow. Bank of America fell 1.3
percent and dragged the S&P.

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 also came under scrutiny, 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.

At 12:44 p.m. ET (1644 GMT), the Dow Jones Industrial
Average was down 83.9 points, or 0.39 percent, at
21,545.82, the S&P 500 was down 2.3 points, or 0.09
percent, at 2,456.84.

The Nasdaq Composite was up 10.41 points, or 0.16
percent, at 6,324.84.

Six of the 11 major S&P 500 sectors were lower, with the
telecommunications and financial sectors
leading the decliners.

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

“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

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 fell 8.6 percent after the
motorcycle maker cut its 2017 shipments forecast.

Chipotle Mexican Grill was down 6 percent, after a
report the burrito chain shut a restaurant following complaints
of severe illness from several diners.

Declining issues outnumbered advancers on the NYSE by 1,656
to 1,139. On the Nasdaq, 1,599 issues fell and 1,162 advanced.
(Reporting by Tanya Agrawal; Editing by Arun Koyyur)