* Wells Fargo net interest margin drops, profit jumps
* Boeing falls as Dreamliner hit by two more incidents
* Best Buy shares rally after holiday sales report
* Indexes: Dow flat, S&P off 0.2 pct, Nasdaq off 0.1 pct
By Angela Moon
NEW YORK, Jan 11 U.S. stocks edged lower on
Friday after Wells Fargo & Co, the first major bank to
kick off fourth-quarter earnings season for the financial
sector, reported a decline in net interest margin despite a
record profit in the latest quarter.
Wells Fargo, the fourth-biggest U.S. bank and the nation's
largest home lender, said its fourth-quarter net interest margin
- a key measure of how much money banks make from loans - fell,
even as profit jumped 24 percent. The bank also made fewer
mortgage loans than in the third quarter.
"It (Wells Fargo results) is weighing on the sector. We are
keeping our fingers crossed that this won't be a sector thing
and more confined to Wells Fargo, but it's definitely playing a
factor today," said Larry Peruzzi, senior equity trader at
Cabrera Capital Markets LLC in Boston.
The bank's shares fell 1.4 percent to $34.92. The S&P 500
financial sector index fell 0.6 percent and the KBW
Banks index fell 1 percent. Bank of America Corp,
JPMorgan Chase & Co and Citigroup Inc are due to
report results next week.
Overall earnings were expected to grow by 1.9 percent in
this earnings season, according to Thomson Reuters data.
The Dow Jones industrial average was up 6.12 points,
or 0.05 percent, at 13,477.34. The Standard & Poor's 500 Index
was down 2.37 points, or 0.16 percent, at 1,469.75. The
Nasdaq Composite Index was down 2.19 points, or 0.07
percent, at 3,119.56.
Also keenly watched Friday were shares of Dow component
Boeing, which fell 2.6 percent to $75.11 after a cracked
cockpit window and an oil leak on separate flights in Japan
compounded safety concerns about its new 787 Dreamliner. The
U.S. Department of Transportation said the jet would be subject
to a review of its critical systems by regulators.
Best Buy shares rallied after its results showed a
bit of a turnaround in its U.S. stores, though same-store sales
were flat during the key holiday season. Shares jumped 12
percent to $13.69.
Basic materials shares were pressured after China's annual
consumer inflation rate picked up to a seven-month high,
narrowing the scope for the central bank to boost the economy by
easing monetary policy. The S&P basic materials sector
fell 0.6 percent.
Dendreon Corp shares jumped 14.7 percent to $5.85
after Sanford C. Bernstein upgraded the drugmaker's stock to
"outperform" from "market-perform" and said it could be one of
the best performers in 2013.