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US STOCKS-Wall St flat after bank results; energy curbs losses

Published 10/15/2009, 02:57 PM
Updated 10/15/2009, 03:03 PM

* Goldman Sachs, Citigroup down after results

* Energy stocks rise after EIA inventory data

* Jobless claims fall to nine-month low

* Indexes: Dow, S&P up 0.1 pct, Nasdaq off 0.1 pct (Updates to midafternoon, changes byline)

By Leah Schnurr

NEW YORK, Oct 15 (Reuters) - U.S. stocks were little changed on Thursday after Goldman Sachs Group and Citigroup Inc's quarterly results fell short of some investors' expectations, a day after major indexes rallied to fresh highs for 2009.

Losses were limited as oil inventory data boosted energy shares, and a series of economic data added to the argument the economy is on the mend.

The financial sector fell after Goldman and Citigroup's results that, while better-than-expected, failed to meet the lofty standard set on Wednesday by JPMorgan Chase & Co, the first major bank to report earnings.

JPMorgan's results far surpassed expectations and drove major indexes to 2009 highs, and the Dow Jones industrial average broke above 10,000 for the first time in a year.

"JPMorgan's results raised the bar for expectations and that spread to a number of financials," said Alan Gayle, senior investment strategist at RidgeWorth Investments in Richmond, Virginia.

"The market was looking for strong results, and it got that and more, but it decided to sell on the good news at Goldman."

Goldman's earnings nearly quadrupled, largely because of strong trading results. Citigroup's third-quarter loss was narrower than expected, but the company booked $8 billion in credit losses.

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Goldman fell 2.1 percent to $188.40 and Citigroup shed 5.4 percent to $4.74, while financials lost 1 percent.

The Dow Jones industrial average added 14.51 points, or 0.14 percent, to 10,030.37. The Standard & Poor's 500 Index put on 1.40 points, or 0.13 percent, to 1,093.42. The Nasdaq Composite Index was off 2.53 points, or 0.12 percent, to 2,169.70.

Crude oil rose 3.1 percent to $77.52 per barrel, erasing early losses, after data showed gasoline and distillate inventories fell sharply in the last week. Energy shares rose, with Chevron Corp up 1.6 percent at $76.68.

On the economic front, data showed consumer prices edged up in September and the number of workers filing new claims for jobless benefits dropped to a nine-month low last week.

A sharp increase in New York state factory activity was tempered by a report showing factory activity in the Mid-Atlantic region grew less than expected.

Nokia Corp results also bruised confidence in the earnings season. Shares sank 10.7 percent to $13.74 on the New York Stock Exchange after it reported an unexpected third-quarter loss.

Markets will continue to feel the push and pull of earnings season as investors react to individual corporate results. The season picks up pace with Google Inc and International Business Machines Corp reporting after the bell.

Google was among the Nasdaq's biggest weights, down 1 percent at $529.80.

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