US STOCKS-Wall Street to dip on growth concerns, earnings eyed

Wed Jan 16, 2013 2:06pm GMT

Quotes

   

* JPMorgan, Goldman Sachs earnings jump

* Japan airlines ground Dreamliners after emergency landing

* Dell buyout talks advance, shares slip

* Futures: Dow off 45 pts, S&P down 3.4 pts, Nasdaq up 2 pts

By Rodrigo Campos

NEW YORK, Jan 16 (Reuters) - U.S. stocks were set to retreat from five-year highs at the open Wednesday despite strong bank results on concerns about global economic growth, with shares of Boeing pressured after two Japanese airlines grounded their Dreamliner fleets.

Earnings at Goldman Sachs nearly tripled on increased revenue from dealmaking and lower compensation expenses and its shares jumped 2.3 percent in premarket trading.

JPMorgan Chase & Co said fourth-quarter net income jumped 53 percent and earnings for 2012 set a record, but its shares slipped 0.7 percent in volatile trading.

A slow economic recovery in developed nations is holding back the global economy, the World Bank said, as it sharply cut its outlook for world growth in 2013 to 2.4 percent, from an earlier forecast of 3.0 percent.

Concern about global economic growth is weighing on markets, said Peter Jankovskis, co-chief investment officer at OakBrook Investments in Lisle, Illinois.

Shares of Dow component Boeing fell 3.8 percent in premarket trading on concerns about the safety of its new Dreamliner passenger jets. Japan's two leading airlines grounded their fleets of 787s after an emergency landing, adding to safety concerns triggered by a ream of recent incidents.

"It's certainly going to pull averages down given Boeing's large market cap but I don't see it as having broader market implications," Jankovskis said.

S&P 500 futures fell 3.4 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 45 points, and Nasdaq 100 futures added 2 points.

Talks to take Dell Inc private were at an advanced stage, with at least four major banks lined up to provide financing, two sources with knowledge of the matter told Reuters. Shares fell 3.8 percent in premarket trading after jumping more than 21 percent over the past two sessions.

U.S. consumer prices were flat in December, pointing to muted inflation pressures that should give the Federal Reserve room to prop up the economy by staying on its ultra-easy monetary policy path.

The Dow and S&P 500 rose Tuesday after stronger-than-expected retail data, with the S&P closing at a fresh five-year high of 1,472.34.

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