Bank results impede Wall Street; oil falls as Russia mulls more production

NEW YORK (Reuters) – World stocks reversed earlier gains on Monday as underwhelming quarterly results from U.S. banks weighed on Wall Street, while oil prices fell as Russia mulled boosting production.

FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., April 9, 2019. REUTERS/Brendan McDermid

The U.S. benchmark S&P 500 stock index dipped after Goldman Sachs Group and Citigroup Inc both reported quarterly revenue below consensus estimates, though the index pared losses in afternoon trading.

MSCI’s gauge of global equities, which has risen more than 14% this year, dipped 0.03% on Wall Street’s negative turn.

The U.S. earnings season is being used to gauge the strength of corporate America in the face of major challenges to growth.

While U.S. corporate earnings are widely expected to drop year-over-year for the first quarter, analysts anticipate an increase in revenue. As a result, equity investors will likely follow top-line results closely, said Oliver Pursche, chief market strategist at Bruderman Asset Management in New York.

“People are focusing on the revenue numbers, and they’re virtually in line if not slightly disappointing so far,” he said.

The Dow Jones Industrial Average fell 42.92 points, or 0.16%, to 26,369.38, the S&P 500 lost 4.6 points, or 0.16%, to 2,902.81, and the Nasdaq Composite dropped 16.32 points, or 0.2 percent, to 7,967.85.

Upbeat news on U.S.-China trade talks cushioned the disappointing revenue reports.

U.S. Treasury Secretary Steven Mnuchin said he hoped the trade talks were approaching a final lap. Reuters reported on Sunday that U.S. negotiators have tempered demands that China curb industrial subsidies as a condition for a trade deal after strong resistance from Beijing.

The trade optimism helped European equities edge upward, with the STOXX 600 closing up 0.15%.

Oil prices, however, fell after Russia’s finance minister

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