* Citigroup profit hit by bond trading slowdown; shares dip
* Volume reduced as investors watch fiscal negotiations
* Teradata drops sharply after profit warning
* Indexes mixed: Dow down 0.1 pct; S&P up 0.01 pct; Nasdaq
up 0.2 pct
By Julia Edwards
NEW YORK, Oct 15 U.S. stocks were little changed
on Tuesday and trading was light as division between senators
and congressmen in talks to extend the U.S. borrowing limit and
reopen the government kept investors from making major new bets.
Washington's stalemate distracted investors from the
beginning of a busy week of earnings. Citigroup reported
weaker-than-expected results as the bank was hit by a
double-digit drop in bond trading revenue for the quarter.
Shares fell 0.4 percent to $49.43.
Markets have rallied in the past several days as optimism
grew that lawmakers would agree to end the partial government
shutdown and eliminate the risk of a U.S. default by approving
more borrowing authority. Representatives in the House and
Senate were currently working toward separate bills.
House Republicans said their plan would re-open the
government and extend the debt ceiling until Feb. 7, but it
included changes to the healthcare law, which the White House
"Something permanent would be the most positive," said Angel
Mata, managing director of listed equity trading at Stifel
Nicolaus Capital Markets in Baltimore. "You would want a
positive budget resolution and maybe a grand bargain. Those
things just aren't going to happen."
At this point, Mata said, even a stop-gap bill would boost
All ten S&P sectors were down with utilities
declining the sharpest, down 0.6 percent. Utilities, as big debt
issuers, could see their borrowing costs rise if the U.S.
delayed or defaulted on its debt payments.
The Dow Jones industrial average was down 63.95
points, or 0.42 percent, at 15,237.31. The Standard & Poor's 500
Index was down 5.33 points, or 0.31 percent, at 1,704.81.
The Nasdaq Composite Index was down 6.51 points, or 0.17
percent, at 3,808.77.
Shares of Teradata Corp fell 16 percent to $44.00, a
day after the data analytics firm cut its full-year earnings
forecast by about 10 percent.
Several other S&P 500 index components report results later
in the day, including Yahoo Inc and Intel Corp
after the closing bell.
Johnson & Johnson reported stronger-than-expected
quarterly results on strong growth for its prescription drugs.
The stock was up 0.4 percent at $90.16.
Coca-Cola Co reported higher earnings and lower
revenue, helped by strong global sales of its Coca-Cola brand
products. But the stock was off 0.03 percent at $37.91.
Data showed the pace of growth in New York state's
manufacturing sector slipped this month to its slowest since
May, but business optimism stayed strong.