(Corrects to show Banco Bilbao Vizcaya Argentaria is Spanish,
not Argentine, in paragraph 7))
* Procter & Gamble leads Dow, S&P 500 after results
* S&P on track for second straight weekly decline
* Indexes off: Dow 0.77, S&P 0.83 pct, Nasdaq 0.91 pct
By Chuck Mikolajczak
NEW YORK, Jan 24 U.S. stocks fell on Friday, in
the wake of a selloff in emerging market assets, hurt by growth
concerns in China and as expectations grew that the Federal
Reserve will trim its market-friendly stimulus measures further.
With many market participants expecting the Fed next week to
shave its stimulus by another $10 billion a month, investors
will look to less risky assets such as U.S. bonds, expecting
interest rates will begin to rise. The Fed's
policymakers will conclude a two-day meeting on Wednesday.
A rout in emerging market assets spread to developed
countries in Europe on worries over Fed policy, slowing growth
in China and political problems in Turkey, Argentina and
Worries over China's growth emerged after a disappointing
manufacturing number spurred the S&P 500 to a 0.9 percent fall
The Turkish lira hit a fresh record low and the South
African rand a new five-year low against the dollar.
U.S.-listed shares of Banco Bilbao Vizcaya Argentaria, S.A.
slumped 5.3 percent to $12.01.
Shares of the Spanish bank with heavy exposure to Latin
America fell a day after Argentina's peso suffered its steepest
daily decline in 12 years, prompting Argentina's government to
loosen strict foreign exchange controls.
"It's just the final realization that they can't continue to
grow as an economy the same way they did before," said Andres
Garcia-Amaya, global market strategist at J.P. Morgan Funds, in
"It's a combination of less liquidity for these countries
that depended on foreign money, and China kind of throwing some
curveballs as well."
Benchmark 10-year Treasuries notes were up 11/32
in price with a yield of 2.735 percent.
Argentina's government said Friday it would loosen strict
foreign exchange controls, after it abandoned its long-standing
policy of intervening to support the peso currency. That
resulted in the currency's steepest plunge since the 2002
The Dow Jones industrial average fell 124.39 points
or 0.77 percent, to 16,072.96, the S&P 500 lost 15.26
points or 0.83 percent, to 1,813.2 and the Nasdaq Composite
dropped 38.212 points or 0.91 percent, to 4,180.663.
The S&P 500 is down 1.3 percent for the week. The benchmark
index fell below its 50-day moving average for the first time
since Dec. 18, a technical support level that could indicate
more selling pressure if convincingly pierced.
Procter & Gamble Co gained 3.4 percent to $80.91, the
biggest boost to the Dow and S&P 500, after the world's largest
household products maker reported lower quarterly profit but
kept its 2014 sales forecast unchanged.
Microsoft Corp gained 1.8 percent to $36.70 after
the world's largest software company posted a
bigger-than-expected quarterly profit.
Honeywell International Inc reported
higher-than-expected fourth-quarter profit and revenue on
Friday, as sales grew across the diversified manufacturer's
major segments. Its shares edged up 0.5 percent to $90.24.
Thomson Reuters data through Thursday morning shows earnings
for the fourth quarter are expected to grow 7 percent. Of the
102 companies in the benchmark S&P index that have reported, 63
percent beat expectations, in line with the long-term average.
(Editing by Bernadette Baum and Nick Zieminski)