Wall Street slightly lower as Citi results weigh on bank stocks

By Medha Singh and Uday Sampath Kumar (Reuters) - Wall Street's three main indexes edged lower in choppy trade on Monday, easing from record highs, as declines in Boeing and bank stocks after Citigroup's quarterly report were tempered by a rise in healthcare shares.

Reuters July 16, 2019 00:05:24 IST
Wall Street slightly lower as Citi results weigh on bank stocks

Wall Street slightly lower as Citi results weigh on bank stocks

By Medha Singh and Uday Sampath Kumar

(Reuters) - Wall Street's three main indexes edged lower in choppy trade on Monday, easing from record highs, as declines in Boeing and bank stocks after Citigroup's quarterly report were tempered by a rise in healthcare shares.

Citigroup Inc reported a better-than-expected profit kicking off earnings for major U.S. lenders, but reported a decline in interest margins, with its shares marginally lower in volatile trading.

The compression in Citi's net interest margins will have investors keeping a close eye on the metric for the other big banks reporting this week, especially with a possible interest rate cut on the horizon, Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York said.

JPMorgan Chase & Co, Goldman Sachs Group Inc and Wells Fargo & Co slipped ahead of their earnings reports on Tuesday.

Banks dropped 1.02%, while the S&P 500 financial index fell 0.61%.

Keeping losses in check were healthcare stocks, which rose 0.22%, one of the five major S&P sectors in the positive territory.

Healthcare was supported by gains in Gilead Sciences Inc, after the drugmaker said it would invest $5.1 billion in a major expansion of its partnership with biotech Galapagos NV.

Second-quarter earnings start in earnest this week and analysts expect S&P 500 companies to report a 0.3% fall in profit, the first quarterly drop in three years, according to Refinitiv IBES data.

At 12:52 p.m. ET the Dow Jones Industrial Average was down 32.75 points, or 0.12%, at 27,299.28, the S&P 500 was down 4.58 points, or 0.15%, at 3,009.19 and the Nasdaq Composite was down 5.97 points, or 0.07%, at 8,238.17.

The three main indexes ended last week at record closing highs as dovish comments from Federal Reserve Chairman Jerome Powell bolstered hopes that the central bank would deliver its first interest rate cut in a decade later this month.

S&P and Dow heavyweight Boeing Co slipped 0.7% on a report that the 737 Max jet may stay grounded until early 2020.

Symantec Corp tumbled 14.2% and was the top loser on the benchmark index after a report that the cybersecurity company and Broadcom Inc have ceased deal talks, with the chipmaker up 1.2%.

Paper packaging companies Westrock Co, Packaging Corp of America and International Paper Co shed between 1.7% and 3% after KeyBanc downgraded their shares, citing risks from a further fall in containerboard and pulp prices.

Declining issues outnumbered advancers for a 1.20-to-1 ratio on the NYSE and a 1.27-to-1 ratio on the Nasdaq.

The S&P index recorded 61 new 52-week highs and one new low, while the Nasdaq recorded 68 new highs and 47 new lows.

(Reporting by Medha Singh and Uday Sampath in Bengaluru; Editing by Arun Koyyur, Sriraj Kalluvila and Shounak Dasgupta)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.