Wall Street dips after lackluster big bank earnings

(Reuters) – U.S. stocks slipped on Monday, weighed by losses in financial stocks as earnings from Wall Street’s big banks Goldman Sachs and Citigroup failed to impress.

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

Goldman Sachs Group Inc fell 2.6%, while Citigroup Inc declined 1%. Both banks beat quarterly profit estimates, but their revenue missed.

The financial sector dipped 0.48%, and the S&P banking index fell 0.66%.

“People are sort of looking for direction,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.

“We’ve got a lot of earnings reports coming in, including the banks, and they are important because they ought to tell us something about the state of the economy.”

Monday’s results follow JPMorgan Chase’s upbeat earnings on Friday that eased fears of first-quarter earnings season slamming the brakes on Wall Street’s big rally back from last year’s slump.

The benchmark S&P 500 index is now within a percent of its September record closing high.

In a bright spot, the healthcare sector rose 0.2%, bouncing back from a rough week, led by a more than 1% gain in UnitedHealth Group Inc, CVS Health Corp and Anthem Inc.

On the trade front, Reuters reported that U.S. negotiators have tempered demands that China curb industrial subsidies as a condition for a deal, while Treasury Secretary Steven Mnuchin said he hoped the talks were approaching a final lap.

At 10:01 a.m. ET, the Dow Jones Industrial Average was down 38.21 points, or 0.14%, at 26,374.09. The S&P 500 was down 3.06 points, or 0.11%, at 2,904.35 and the Nasdaq Composite was down 9.48 points, or 0.12%, at 7,974.68.

Of the 29 S&P 500 companies reporting results so far, 79.3% have surpassed first-quarter earnings

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