US STOCKS-Wall St flat, but Internet names support Nasdaq

Reuters - UK Focus

* Indexes on track for worst week since April

* Wells Fargo falls, but revenue tops forecasts

* Internet names help support the Nasdaq

* Dow down 0.1 pct, S&P flat, Nasdaq up 0.2 pct (Updates to open)

By Ryan Vlastelica

NEW YORK, July 11 (Reuters) - U.S. stocks were littlechanged on Friday, with indexes on track for their biggestweekly drop in months, as an early ream of corporate earningswasn't enough to entice buyers even after a string of marketlosses.

While the Nasdaq was lifted by strength in Internet names,the S&P 500 is down for a fourth session out of the past five asrecent concerns about economic growth, especially in Europe,have pushed investors to take profits. The benchmark index isabout 1.2 percent from a record closing high hit last week.

Wells Fargo & Co reported revenue that beatexpectations, though for the first time since 2009, the bank didnot increase its earnings-per-share from the preceding quarter.The stock fell 1.5 percent to $51.01 as one of the biggestdecliners on the S&P 500.

Fastenal Co slumped 4.6 percent to $45.92 afterrevenue missed expectations.

"Wells came in a little light, and while there was nothingreally wrong with the quarter, it is one of the few banks thatcan be counted on to beat profit expectations and that didn'thappen," said Matthew Kaufler, portfolio manager at FederatedInvestors in Rochester, New York. "Earnings look like they mightbe a little light."

Only 5 percent of S&P 500 companies have reported thus far,and about 56 percent beat earnings expectations, below thelong-term average of 63 percent, according to Thomson Reutersdata.

Next week, dozens of highly watched names - includingseveral Dow components - are expected to report results.

The Dow Jones industrial average fell 16.67 points,or 0.1 percent, to 16,898.4, the S&P 500 lost 0.76 pointsor 0.04 percent, to 1,963.92 and the Nasdaq Composite added 10.29 points, or 0.23 percent, to 4,406.49.

For the week, the Dow is down 1 percent, the S&P is down 1.1percent and the Nasdaq is down 1.8 percent. It is the biggestweekly decline for all three indexes since April. The CBOEVolatility index is up almost 20 percent this week, itsbiggest weekly spike since April.

In a cautious signal, the S&P remains under its 14-daymoving average, a sign of weak near-term momentum.

Internet companies supported the Nasdaq, with Amazon.com Inc up 4.2 percent at $341.59 and eBay Inc up 2.4percent at $51.54.

Whirlpool Corp (NYSE: WHR - news) rose 1.9 percent to $141.91 after thecompany agreed to buy 66.8 percent of voting stock of Italy'sIndesit Company SpA for about $1.03 billion.

Reynolds American Inc (NYSE: RAI - news) confirmed it is in talks toacquire Lorillard Inc (NYSE: LO - news) in a multi-billion dollar deal thatwould include the sale of some brands to Britain's ImperialTobacco Group Plc. Shares (Frankfurt: DI6.F - news) of Reynolds fell 0.5 percentto $61.97 while Lorillard rose 5.6 percent to $66.63 as theS&P's biggest gainer. (Editing by Bernadette Baum)

View Comments (0)