* Wells Fargo net interest margin drops, profit jumps
* Boeing falls as Dreamliner hit by two more incidents
* Best Buy shares rally after holiday sales report
* Dow down 0.02 pct, S&P down 0.2 pct, Nasdaq down 0.02 pct
By Leah Schnurr
NEW YORK, Jan 11 U.S. stocks were little changed
on Friday after Wells Fargo & Co reported a decline in
net interest margin despite a record profit in the latest
quarter, weighing on bank stocks.
Dow component Boeing also weighed on the market after
a cracked cockpit window and an oil leak on separate flights in
Japan added to problems with some of its Dreamliner jets earlier
in the week, compounding safety concerns about the new aircraft.
The U.S. Department of Transportation said the jet would be
subject to a review of its critical systems by regulators.
Boeing was the biggest loser on the Dow, falling 3.1 percent to
Wells Fargo was the first major bank to report results and
said its fourth-quarter net interest margin - a key measure of
how much money banks make from loans - fell, even as profit
jumped 24 percent. The bank also made fewer mortgage loans than
in the third quarter.
"It (Wells Fargo results) is weighing on the sector. We are
keeping our fingers crossed that this won't be a sector thing
and more confined to Wells Fargo, but it's definitely playing a
factor today," said Larry Peruzzi, senior equity trader at
Cabrera Capital Markets LLC in Boston.
The bank's shares fell 1.4 percent to $34.91. The S&P 500
financial sector index fell 0.7 percent after rallying
more than 1 percent on Thursday and the KBW Banks index
fell 1.3 percent.
The Dow Jones industrial average was off 3.24 points,
or 0.02 percent, to 13,467.98. The Standard & Poor's 500 Index
fell 2.50 points, or 0.17 percent, to 1,469.62. The
Nasdaq Composite Index dipped 0.64 points, or 0.02
percent, to 3,121.13.
Bank of America Corp, JPMorgan Chase & Co
and Citigroup Inc are due to report results next week.
Overall earnings were expected to grow by 1.9 percent in
this earnings season, according to Thomson Reuters data. But
analysts say that with the bar so low, there's room for
companies to beat expectations, even if their results are not
"People are going to be looking for a slowdown in Europe to
hit revenues for companies in the U.S. that are exposed to that.
I don't think the market is going to react to that, that's
already built in," said Troy Logan, managing director and senior
economist at Warren Financial Service, in Exton, Pennsylvania.
Best Buy shares rallied after its results showed a
small turnaround in its U.S. stores, though same-store sales
were flat during the key holiday season. Shares jumped 13.4
percent to $13.85, making it the best performer on the S&P 500.
Basic materials shares were pressured after China's annual
consumer inflation rate picked up to a seven-month high,
narrowing the scope for the central bank to boost the economy by
easing monetary policy. The S&P basic materials sector
slipped 0.4 percent.
Dendreon Corp shares surged 17.4 percent to $5.99
after Sanford C. Bernstein upgraded the drugmaker's stock to
"outperform" from "market-perform" and said it could be one of
the best performers in 2013.