Stocks slip af­ter spir­ited win­ning streak

The Washington Post Sunday - - BUSINESS -

U.S. stocks fell, end­ing the long­est weekly win­ning streak for the Stan­dard & Poor’s 500-stock in­dex since 2007, af­ter Gold­man Sachs Group and Cit­i­group failed to beat an­a­lysts’ earn­ings es­ti­mates and hous­ing starts slid more than fore­cast.

The S&P 500 pared its weekly slump Fri­day af­ter Gen­eral Elec­tric re­ported higher-thanpro­jected profit, driv­ing its shares up 7.1 per­cent. Gold­man Sachs and Cit­i­group fell more than 4.6 per­cent last week af­ter de­clines in trad­ing hurt their earn­ings. Massey En­ergy lost 4.8 per­cent.

The S&P 500 de­clined 0.8 per­cent to 1283.35, the first drop af­ter seven straight weeks of gains. The Dow Jones in­dus­trial av­er­age added 84.46 points, or 0.7 per­cent, to 11,871.84.

“You came into earn­ings sea­son with the bar set pretty high,” said Scott Migliori of RCM, a unit of Al­lianz Global In­vestors that over­sees more than $145 bil­lion in as­sets. “Ex­pec­ta­tions have been ratch­eted up over the last cou­ple of months as the macroe­co­nomic data points and macroe­co­nomic out­look have im­proved. A pull­back in late Jan­uary, early Fe­bru­ary is rea­son­able.”

The S&P 500 fell af­ter climb­ing to the high­est level since Au­gust 2008 on Jan. 18.

The Trea­sury will sell $29 bil­lion in three­month and $28 bil­lion in six-month bills on Mon­day. They yielded 0.147 per­cent and 0.188 per­cent, re­spec­tively, in when-is­sued trad­ing. The U.S. will also sell $35 bil­lion in both two-year and five-year notes and $29 bil­lion in seven-year notes. They yielded 0.648 per­cent, 2.055 per­cent and 2.789 per­cent.

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