US STOCKS-S&P, Dow flat as tech losses offset gains in banks

* U.S. economy grew 1.4 pct in Q1 vs prior reading of 1.2
pct

* Walgreens rises after terminating Rite Aid deal

* Dow up 0.06 pct, S&P off 0.07 pct, Nasdaq down 0.45 pct
(Updates to open)

By Ankur Banerjee

June 29 (Reuters) – The S&P 500 and the Dow Jones Industrial
Average were little changed in early trading on Thursday as a
rise in bank stocks were offset by a slide in the technology
sector.

Shares of the top six U.S. banks rose after the Federal
Reserve cleared them in the second part of its annual stress
test, allowing them to raise dividend payouts and share
buybacks.

The financial index led the two gainers among the 11
S&P 500 sectors, rising 1.74 percent.

“The banks will be in the spotlight today as all of the U.S.
banks passed the stress test,” said Peter Cardillo, chief market
economist at First Standard Financial in New York.

Wall Street rallied sharply on Wednesday, with the benchmark
S&P 500 index scoring its biggest one-day percentage gain in
about two months, as financial and technology stocks led a broad
market rebound.

The Nasdaq posted on Wednesday its best session since Nov.
7, the day before the U.S. presidential election.

Tech stocks, which have led the S&P 500’s 9-percent gain
this year, pulled back recently as some investors questioned the
sector’s high valuations.

Nine S&P 500 sectors were lower, with the technology index’s
0.85 percent fall leading the decliners.

Apple, Alphabet and Microsoft
were the biggest drags on the Nasdaq and the S&P.

At 9:40 a.m. ET (1340 GMT), the Dow Jones Industrial Average
was up 12.99 points, or 0.06 percent, at 21,467.6, the
S&P 500 was down 1.82 points, or 0.07 percent, at
2,438.87.

The Nasdaq Composite was down 27.94 points, or 0.45
percent, at 6,206.47.

Oil prices rose to a two-week high, extending the rally into
the sixth straight session, after a decline in weekly U.S.
production eased concerns about deepening oversupply.

The markets were little changed after data showed the U.S.
economy slowed less sharply in the first quarter than initially
estimated due to unexpectedly higher consumer spending and a
bigger jump in exports.

The number of Americans filing for unemployment benefits
edged up last week, but the underlying trend remained consistent
with a tight labor market.

Among stocks, Staples rose 2 percent after private
equity firm Sycamore Partners agreed to acquire the U.S. office
supplies chain for $6.9 billion.

Walgreens Boots Alliance was up 4.8 percent after it
terminated agreement to buy Rite Aid Corp and said it
would instead buy nearly half of Rite Aid’s stores for $5.18
billion. Rite Aid slumped 24 percent.

Declining issues outnumbered advancers on the NYSE by 1,472
to 1,132. On the Nasdaq, 1,214 issues fell and 1,114 advanced.
(Reporting by Ankur Banerjee in Bengaluru; Editing by Arun
Koyyur)

Leave a Reply

Your email address will not be published.