* Goldman, Citigroup earnings push financial stocks lower
* CSX shares drop on results; Best Buy plummets
* Intel posts results after the bell, stock slides
* Dow down 0.4 pct, S&P 500 off 0.1 pct, Nasdaq up 0.1 pct
By Caroline Valetkevitch
NEW YORK, Jan 16 The Dow and S&P 500 slipped on
Thursday, with the S&P retreating from the previous session's
record high, after earnings from Goldman Sachs and other
banks disappointed investors.
Financials were the biggest drag on the market after both
Goldman Sachs Group Inc and Citigroup Inc reported
that lower bond trading revenue took a bite out of their
quarterly profits. Goldman's earnings fell 21 percent.
Citigroup's profit missed expectations.
The results followed fairly positive reads on the financial
sector with earnings from Bank of America Corp, JPMorgan
Chase & Co and Wells Fargo & Co earlier this
Goldman's stock slid 2 percent to close at $175.17. It was
the biggest drag on the Dow. Citigroup's stock dropped 4.4
percent to end at $52.60 and was the biggest negative for the
S&P 500. The S&P financial sector index fell 0.6
percent, making it the biggest loser among the 10 sectors in the
Analysts said that given the S&P 500's gain of 30 percent
last year, the market doesn't need much of a catalyst for
"You get a day like today with a little disappointment
following a day when the market was up big, and we get a selloff
like this," said Bucky Hellwig, senior vice president of BB&T
Wealth Management in Birmingham, Alabama.
Concerns that stock valuations may be too high put some
pressure on stocks after last year's rally. But the S&P 500
index surged 1.6 percent over the previous two sessions on
results and economic data to close at a record high on
Wednesday, its first since Dec. 31.
The Dow Jones industrial average fell 64.93 points or
0.39 percent, to end at 16,417.01. The S&P 500 slipped
2.49 points or 0.13 percent, to finish at 1,845.89. The Nasdaq
Composite added 3.805 points or 0.09 percent, to close
Though the earnings season has just started, companies are
beating expectations at a rate that's below the long-term
average. With earnings from 6 percent of the S&P 500 companies
so far, 48 percent have exceeded expectations, below the
historical average of 63 percent for a full season, Thomson
Reuters data showed.
INTEL, AMERICAN EXPRESS OFF LATE
After the closing bell, shares of Intel Corp
tumbled 2.4 percent to $25.90 following its results and a
lukewarm revenue forecast. In regular trading, Intel had slipped
0.5 percent to end at $26.54.
American Express Co shares dipped 0.03 percent to
$87.75 in extended-hours trading following the release of its
results. American Express shares had ended regular trading at
$87.78, down 0.5 percent.
During the regular session, UnitedHealth Group Inc
fell 2.8 percent to close at $72.76 after the largest U.S.
health insurer said that implementing the national healthcare
reform law, often called Obamacare, and funding cuts for private
Medicare coverage would result in expenses that would eat into
2014 profit. UnitedHealth, however, reported a higher
fourth-quarter profit on Thursday and said 2014 earnings would
Shares of UnitedHealth's major competitors fell as well,
including Aetna Inc, down 1.6 percent at $70.23.
CSX Corp shares sank 6.8 percent to $27.24 a day
after the U.S. railroad reported profits that missed
The stock of Best Buy Co Inc plunged 28.6 percent
to close at $26.83, making it easily the S&P 500's biggest
percentage decliner, followed by CSX. Best Buy, the world's
largest consumer electronics chain, reported a drop in holiday
sales and forecast a bigger-than-expected decline in quarterly
The day's economic data included initial claims for state
unemployment benefits, which slipped 2,000 to a seasonally
adjusted 326,000 in the week ended Jan. 11. Claims for the prior
week were revised to show 2,000 fewer applications received than
previously reported, suggesting a sharp slowdown in job growth
in December was likely to be temporary.
The Consumer Price Index rose 0.3 percent in December while
the core CPI, which strips out volatile food and energy prices,
edged up only 0.1 percent, suggesting underlying inflation was
muted. The Philadelphia Federal Reserve Bank
said its business activity index stood at 9.4 points in January,
compared with 6.4 in December.
In the deal arena, Apollo Global Management LLC said
it would buy CEC Entertainment Inc, the parent of the
Chuck E Cheese restaurant chain, for about $948 million. CEC
Entertainment's stock jumped 13.1 percent to $54.75. Apollo
Global's shares rose 0.8 percent to end at $36.05.
Volume was slightly below the average for the month. About
6.4 billion shares changed hands on U.S. exchanges, compared
with the average of 6.6 billion so far this month, according to
data from BATS Global Markets.
Advancers outnumbered decliners on the New York Stock
Exchange by a ratio of about 17 to 12. On the Nasdaq, advancers
were about even with decliners.