Wall Street Week Ahead: Earnings, money flows to push stocks higher

NEW YORK (Reuters) - With earnings momentum on the rise, the S&P 500 seems to have few hurdles ahead as it continues to power higher, its all-time high a not-so-distant goal.

The U.S. equity benchmark closed the week at a fresh five-year high on strong housing and labor market data and a string of earnings that beat lowered expectations.

Sector indexes in transportation <.djt>, banks <.bkx> and housing <.hgx> this week hit historic or multiyear highs as well.

Michael Yoshikami, chief executive at Destination Wealth Management in Walnut Creek, California, said the key earnings to watch for next week will come from cyclical companies. United Technologies reports on Wednesday while Honeywell is due to report Friday.

"Those kind of numbers will tell you the trajectory the economy is taking," Yoshikami said.

Major technology companies also report next week, but the bar for the sector has been lowered even further.

Chipmakers like Advanced Micro Devices , which is due Tuesday, are expected to underperform as PC sales shrink. AMD shares fell more than 10 percent Friday after disappointing results from its larger competitor, Intel . Still, a chipmaker sector index <.sox> posted its highest weekly close since last April.

Following a recent underperformance, an upside surprise from Apple on Wednesday could trigger a return to the stock from many investors who had abandoned ship.

Other major companies reporting next week include Google , IBM , Johnson & Johnson and DuPont on Tuesday, Microsoft and 3M on Thursday and Procter & Gamble on Friday.

CASH POURING IN, HOUSING DATA COULD HELP

Perhaps the strongest support for equities will come from the flow of cash from fixed income funds to stocks.

The recent piling into stock funds -- $11.3 billion in the past two weeks, the most since 2000 -- indicates a riskier approach to investing from retail investors looking for yield.

"From a yield perspective, a lot of stocks still yield a great deal of money and so it is very easy to see why money is pouring into the stock market," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.

"You are just not going to see people put a lot of money to work in a 10-year Treasury that yields 1.8 percent."

Housing stocks <.hgx>, already at a 5-1/2 year high, could get a further bump next week as investors eye data expected to support the market's perception that housing is the sluggish U.S. economy's bright spot.

Home resales are expected to have risen 0.6 percent in December, data is expected to show on Tuesday. Pending home sales contracts, which lead actual sales by a month or two, hit a 2-1/2 year high in November.

The new home sales report on Friday is expected to show a 2.1 percent increase.

The federal debt ceiling negotiations, a nagging worry for investors, seemed to be stuck on the back burner after House Republicans signaled they might support a short-term extension.

Equity markets, which tumbled in 2011 after the last round of talks pushed the United States close to a default, seem not to care much this time around.

The CBOE volatility index <.vix>, a gauge of market anxiety, closed Friday at its lowest since April 2007.

"I think the market is getting somewhat desensitized from political drama given, this seems to be happening over and over," said Destination Wealth Management's Yoshikami.

"It's something to keep in mind, but I don't think it's what you want to base your investing decisions on."

(Reporting by Rodrigo Campos, additional reporting by Chuck Mikolajczak and Caroline Valetkevitch; Editing by Kenneth Barry)

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WORLD: Defusing a Crisis in Pakistan

January 18, 2013By Mac William Bishop and Michelle Stockman

Muhammad Tahir-ul Qadri, a Pakistani preacher, emerged on the country’s political scene, leading huge protests in Islamabad. After days of standoffs, he reached a symbolic deal with the government.

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Morrisons to launch online kitchenware business

LONDON (Reuters) – Britain‘s fourth largest supermarket group Wm Morrison said on Friday it would extend its online presence in the spring with the launch of a kitchenware website in partnership with specialist Lakeland.

The joint venture will be Morrisons‘ third fully transactional website following the launch of wine website MorrisonsCellar.com in November and the purchase of baby care retailer Kiddicare.com in 2011.

“We believe the future for retailing many non-food products is online rather than in supermarkets,” said Chief Executive Dalton Philips.

Unlike the other grocers that make up Britain’s so called “big four” – market leader Tesco, Wal-Mart’s Asda and J Sainsbury – Morrisons does not have a website for the home delivery of food.

Earlier this month Morrisons posted a weak Christmas trading update that it partly attributed to its lack of an online food offer.

The firm is researching the possibility and plans to say more when it publishes full year results in March. Most analysts expect it to launch a trial this year.

(Reporting by James Davey; editing by Kate Holton)

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Channing Tatum & Jenna Dewan-Tatum Share a Fresh, Healthy Lunch Date

Caught in the Act

01/18/2013 at 01:35 PM EST

Jenna Dewan-Tatum and Channing Tatum

FameFlynet

Eating for three?

Parents-to-be Jenna Dewan-Tatum and husband Channing, fresh from a beach holiday in St. Barts, enjoyed a casual lunch date together on Wednesday.

The couple, who wed in 2009 and announced their happy baby news in mid-December, shared their meal at Greenleaf Gourmet Chopshop in Beverly Hills.

Jenna, 32, went with healthy eating, dining on the restaurant's seasonal salad (kale, tangerine, dried blueberry, almonds and citrus vinagrette) while PEOPLE's Sexiest Man Alive, also 32 – and an Alabama native – chose more hearty Southern fare, specifically a barbecue chicken sandwich.

"They were a sweet couple and she's got a little bump too," said an onlooker.
– Jennifer Garcia

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Flu season 'bad one for the elderly,' CDC says

Flu hospitalizations among the elderly rose sharply last week, prompting federal officials to take unusual steps to make more flu medicines available and to urge wider use of them as soon as symptoms appear.

The U.S. is about halfway through the flu season, which is shaping up to be worse than average and a bad one for the elderly, said Dr. Thomas Frieden, director of the Centers for Disease Control and Prevention.

New figures from the CDC show the flu epidemic is continuing, with widespread activity in all states but Tennessee and Hawaii.

Nine more children or teens have died of the flu, bringing the nation's total this flu season to 29, health officials reported Friday. That's close to the 34 pediatric deaths reported during all of the last flu season, although that one was unusually light. In a typical season, about 100 children die of the flu and officials said there is no way to know whether deaths this season will be higher or lower than usual.

So far, half of confirmed flu cases are in people 65 and older. Lab-confirmed flu hospitalizations totaled 19 for every 100,000 in the population, but 82 per 100,000 among those 65 and older, "which is really quite a high rate," Frieden said.

"We expect to see both the number and the rates of both hospitalizations and deaths rise further in the next week or so as the flu epidemic progresses," so prompt treatment with antivirals is key to preventing deaths, he said.

Two drugs — Tamiflu and Relenza — can cut the severity and risk of death from the flu but must be started within 48 hours of first symptoms to do much good. To increase supplies of Tamiflu, said Dr. Margaret Hamburg, head of the Food and Drug Administration, said the agency had allowed Genentech to distribute additional doses that have old packaging information.

This year's season is earlier than normal and the dominant flu strain is one that tends to make people sicker.

Health officials say it's not too late to get a flu shot to help protect against the flu. Vaccinations are recommended for anyone 6 months or older.

Last week, the CDC said the flu again surpassed an "epidemic" threshold, based on monitoring of deaths from flu and a frequent complication, pneumonia. The flu epidemic happens every year and officials say this year's vaccine is a good match for strains that are going around.

The government doesn't keep a running tally of adult deaths from the flu, but estimates that it kills about 24,000 people most years.

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Online:

CDC flu: http://www.cdc.gov/flu/index.htm

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Wall Street slips after disappointing Intel results

NEW YORK (Reuters) - Stocks edged lower on Friday from a five-year high for the S&P 500 as a weak outlook from tech heavyweight Intel offset a better-than-expected quarterly profit at Morgan Stanley.

But the S&P 500 was still on track to end higher for a third consecutive week.

Shares of Intel Corp slumped nearly 7 percent to $21.11 a day after it forecast quarterly revenue below analysts' estimates and announced plans for increased capital spending amid slow demand for personal computers.

"Intel earnings weren't that bad, although their revenue was weak. It sparks fears about not only the company but about the whole PC sector, and that's pressuring the market today," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.

The Intel results were offset somewhat by Morgan Stanley , which reported a fourth-quarter profit after a year-earlier loss, helped by higher revenue at the bank's institutional securities business. Its stock jumped 7.4 percent to $22.29.

Overall, S&P 500 fourth-quarter earnings rose an estimated 2.5 percent, according to Thomson Reuters data. Expectations for the quarter have dropped considerably since October, when a 9.9 percent gain was estimated.

The Dow Jones industrial average <.dji> was down 15.17 points, or 0.11 percent, at 13,580.85. The Standard & Poor's 500 Index <.spx> was down 3.51 points, or 0.24 percent, at 1,477.43. The Nasdaq Composite Index <.ixic> was down 13.98 points, or 0.45 percent, at 3,122.03.

On Thursday, the S&P 500 rose to its highest since late 2007, and that could prompt investors to lock in recent gains, analysts said.

Despite the day's decline, market sentiment was still positive on speculation that chances were better of avoiding a debt ceiling fight in Washington. House Republicans signaled on Thursday they might support a short-term extension of U.S. borrowing authority next month.

"The debt ceiling issue is sort of out of the news. The market has definitely become complacent. And we all know that the issue will be dealt with, we just need to find out when. If December is any guide, they are going to leave it up to the last minute so the market is definitely more complacent than it should be for now," Ghriskey said.

Reflecting the complacency, the CBOE Volatility index <.vix>, Wall Street's so-called fear gauge, fell 4.1 percent at just above 13. The VIX usually moves inversely to the S&P 500 as it is used as a hedge tool against further market decline.

Economic data from China provided some support to the market, though the focus remained on U.S. corporate earnings. The country's economy grew at a modestly faster-than-expected 7.9 percent in the fourth quarter, the latest sign the world's second-biggest economy was pulling out of a post-global financial crisis slowdown which saw it grow in 2012 at its weakest pace since 1999.

General Electric reported a better-than-expected rise in earnings, spurred by robust demand in China and oil-producing countries. Shares were up 2.9 percent to $21.92.

Despite the gains by Morgan Stanley, financial stocks sagged as Capital One Financial reported disappointing profit. Capital One slumped 7.7 percent to $56.87, while the KBW bank index <.bkx> slipped 0.9 percent.

Research In Motion climbed 6.6 percent to $15.91 after Jefferies Group boosted the BlackBerry maker's rating and price target.

(Editing by Bernadette Baum, Kenneth Barry and Nick Zieminski)

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India Ink: A Conversation With: Sikkim Chief Minister Pawan Kumar Chamling

Tucked away in the Himalayas, India’s Sikkim state has averaged an annual growth of 12.6 percent over the last eight years. The state of 600,000 people is of strategic importance to India, surrounded by China, Nepal and Bhutan on three sides. The former monarchy of Sikkim joined the Indian federation of states in 1975 and has been the most peaceful among India’s strife-torn northeastern states.

The chief minister, Pawan Kumar Chamling, has been in power since December 1994, making him the second longest-serving state chief in India’s history. In an interview with India Ink, Mr. Chamling explained how his government has managed to build a development consensus that has eluded Sikkim’s neighboring states.

Sikkim is India’s fastest-growing state since 2004, but somehow its growth story has not been in the limelight as much as Gujarat or Bihar, for example.

Yes, we do not get as much recognition because we are a small state, in a remote part of the country. But we are a sensitive border state – landlocked by China, Nepal and Bhutan. Yet we are among the most peaceful and progressive states of India. The general impression of border states in India is that they are not peaceful, there is lack of development, leading to unemployment and strife. Sikkim, through its example, has changed that perception. Within five years Sikkim will become a poverty-free state, and it will become the first state to have 100 percent concrete houses.

But fast economic growth often comes with environmental hazards, especially in a state that is part of the Himalayan biodiversity hotspot. Has Sikkim’s environment taken a beating in the state’s pursuit of fast growth?

Our development mantra is innovative, based on natural resources, hydropower, organic farming, ecotourism, floriculture and clean industries. Only 14 percent of our land is inhabitable – the rest is taken up by Himalayan glaciers and jungles. But we have turned our locational disadvantage into an opportunity by protecting our biodiversity and inviting tourists to come and enjoy Sikkim’s natural beauty. We have banned grazing, killing of wildlife and eliminated deforestation. Every time we cut a tree for a development project, we plant 20 saplings elsewhere. We have banned pesticides, and in two years we will become a fully organic state. We have promoted clean industries – we have removed the polluting silicon industry out of the state. If the world adopts Sikkim’s model, global warming can be tackled.

How have you brought about the development consensus among people, particularly in the rural areas, in what is still a very traditional society? In many parts of India we see the biggest impediment to development is that locals do not want to give up on land or traditional means of livelihood.

I consider the rural people my overlords – I tell them that I am their main servant. Sikkim is ours; we must build it together. I tell them we have to use our natural resources – our land, our water. If the government wants their land for a road or other construction, I am ready to pay them more than the market price. I don’t believe in compulsory taking away. I negotiate. I engage in dialogue. That is why people are with me in this quest for development. And our state is investment friendly – we invite industries as development partners of our state. They get good, secure conditions to invest, while locals are happy because it creates jobs.

Some of your critics say that perhaps development has happened too fast for the local population. They claim that locals are not getting jobs, which are being taken away by immigrants.

Those people are backward in their thinking. We are just about entering India’s development mainstream and we have a lot of catching up to do to enter the global mainstream. We are still in the agricultural age, not even manufacturing. We are still way behind in terms of education, health and other social indicators. We have a long way to go, and it is my obsession that we do it quickly.

As for immigrants, if there is manpower demand there will be supply from outside sometimes. Sikkimese people do not like to do manual labor, so outsiders will come. But old laws still protect the right of Sikkimese people over land and other resources. So I do not see immigration as a problem.

Trade with China’s Tibet Autonomous Region through the Nathu La Pass was one of your dream projects and the route finally opened up in 2005 for restricted trade. Has the project lived up to your expectations?

I strongly believe that trade through Nathu La should become full-fledged, and all items should flow across the border. People should also be allowed to cross the border for tourism – that can only bring benefits to Sikkim. I am actually unhappy with the Border Roads Organization (of the Indian Army) for not maintaining the road properly. Landslides have caused damage and affected trade more than we would want. On the Chinese side, the road looks in great condition, and this disparity has national security implications as well.

You have now been in power for 18 years, which is quite unique in India, where state governments generally change every four years. Do you see yourself more as an Asian-style figurehead, or even a neo-royal in this former monarchy?

In a democracy, people are supreme. I have been elected four times because people have liked my work. Because our model is working, so people are happy with this model. I don’t think I am a royal figure or a father figure. I think Sikkimese people feel that this is their government. They believe that if their parents could not educate them, the government will. If we cannot eat, the government will provide. That is why they have faith in this government. And they think I am the top man in this government.

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Diem Brown Blogs: Getting Through the Ultimate Relationship Test

In her PEOPLE.com blog, Diem Brown, the Real World/Road Rules Challenge contestant recently diagnosed with ovarian cancer for the second time, opens up about her desire for a child and the ups and downs of cancer and fertility procedures.

I think illness is the ultimate relationship test. You can see so many colors and facets of how different sets of relationships deal with a hardship when going through an illness. I'll get to the romantic relationship later, but I think the same test is put on friendships, families and even your relationship with your job.

We all know the vow: "For better or for worse, in sickness and in health, 'til death does us part." I think the first time I heard that vow was watching my favorite TV couple Kelly Kapowski and Zack Morris get married in their Hawaii TV Special ... yep I was obsessed with Saved By the Bell!

My point is that we have heard this marriage vow since we were little kids, on every TV show, movie or at a family members wedding. We heard that vow as kids and instantly felt security knowing that in our future, we will state a vow that bonds two people through whatever hardship may come their way.

However outside of marriage, there are no vows that set guidelines of how relationships are supposed to play out during an illness.

At the friendship level relationship, I have been so lucky to have most of my friends step up and support me in ways that have touched my heart. Through letters, Facebook messages, texts, girls nights in and even visits to N.Y.C. I have felt a deep love and I will always be connected to my friends that have shown me they are there no matter how long this cancer process takes.

You reading this blog right now and those who have left sweet comments and tweets have also given me so much love and strength and I do not know how I can ever repay the support I have been given.

That's not to say I haven't had some friends who helped me through my first bout with ovarian cancer, but they now seem distant and aloof this time around. They are not bad people, but in my sensitive state of mind they have clearly shown and voiced that they've helped me before but this they are choosing to sit this time around out.

I have to be honest – that it hurts, but it also makes the friends that step up no matter how many times you are kicked down shine even brighter.

That Marilyn Monroe quote comes to mind: "If you can't handle me at my worst, then you sure as hell don't deserve me at my best."

Do You Owe Your Loyal Friends?

Quick sidenote: I've been asked, "How do you act when your friend gets cancer? Should/can you still vent to them about your problems?" To that I say ABSOLUTELY! They are the same best friend you had before, so vent away with what's going on in your life as it actually helps a patient to hear things other than hospital talk.

Just remember to also be an ear for your friend when they want to share or are ready to vent about their health fears.

For me, that's the relationship friend test – so when you are battling an illness it will become clear as day who is there for you. You might have friends that "fall off," but try to focus and let yourself be blown away by the love people that you never thought would care so much about you give. Those people are your gem friends and your gratitude towards them will never fade!

Now what about the romantic relationship test? This part is hard and I have some strong opinions about this. I have talked to so many girls about how they feel they "owe" something to the guy that stuck by their side during cancer.

I understand that feeling – you wanna repay every loyal person but you especially want to repay the man that stuck beside you as you entered your surgery room, helped lift you to your feet and picked up your hair as it fell out etc.

The first time I had cancer I felt this "debt" like no other. I actually tried to break up with my boyfriend at the time before I even started chemo for fear of a break-up during treatments would be too hard.

He ended up not listening to my rationale and when my hair fell out, he would say the things that the average guys doesn't realize makes the patient feel in debt. "I'm not leaving. Look I'm with you right now and you are bald," he would say with a sincere smile. Now, in his mind he was trying to show his commitment, but his comment sparked a heated fire within me.

I asked myself: "Wait what does he mean by 'and you are bald?; Does he want a medal? Is it so hard to be with a bald sick girl?" Needless to say, that was the start of my "internal resentment fire" towards him.

Yet, even when I broke up with him a month after I was done with treatment, I still felt this guilt that, yeah, he did stick by me through cancer ... I owed him for so much help he gave to me.

I've had relationships after my first time with cancer and had built a definite defense wall up. I guarded myself, scared to get too close to someone. Scared to feel I owed something to someone.

Assessing Your Baggage

Dating after my first round of cancer, I would also try and figure out ... when do you tell someone you are dating about your cancer past? "Nice meeting you and oh yeah by the way I had cancer and now have one ovary so not sure if I can have kids..." I would then start to rationalize with myself, "Wait, why do I even have to tell him ... What's the point? Is it really any of their business?"

I would then ponder, what if you were single and wanted to start dating while you are undergoing cancer treatments or start dating immediately after your last chemo treatments. You couldn't hide the physical signs that you are/were sick?

For example, let's say you signed-up for Match.com would you put up a bald picture as your profile pic or would you post an old picture of yourself before cancer or do something in the middle and have your profile picture be of you in your wig?

Most women I know want to be known for who they are, not for what "baggage" they may have. Personally, if in that situation, I think I would post a profile picture of myself in my wig BUT maybe have a bald pic in the "additional pictures" section, because having cancer isn't who you are, its just additional information, right?

I think most women with cancer, especially breast and ovarian cancer, feel ripped off regarding some part of what makes you feel feminine. It's hard not to let your head get all weird and over-analyze what other people will think.

But to be honest, from my experience ... guys don't care. They, for the most part, react in the same way as they react when you say, "I'm not a natural blonde." I'm exaggerating of course, but honestly most guys just don't over think the way most girls do. They just see the girl standing before them, guys hardly analyze the past "baggage" that got them there.

High Expectations

Currently during my second round with cancer ... I expected/expect a lot out of my boyfriend. It may not seem fair, but I do. I have learned from my past and although we have no "vows," I told him upfront when I got the news of my second bout with cancer what was going to happen.

I told him if he doesn't think he can handle what's about to come, it's better if we separate now and I would have no hard feelings.

I told him I'm going to become super emotional and moody and will likely take out most of my frustration out on him if he stays.

I told him there is no medal for staying with me through this or for helping me emotionally cope when my hair falls out or when I get overwhelmed with the whole cancer process.

He looked at me smirking and said, "I'm not going anywhere you crazy girl!"

Yes, he sounds great and all, but he is a guy and I swear they have zero clue on the impact of the words that come out of their mouths.They don't realize that most girls analyze everything, especially when we are feeling vulnerable.

I have gotten upset at him for certain things he has said that I felt were insensitive. I have also gotten upset at him for not touching and kissing my head, thinking inside that he must be grossed out by the "bald thing" in some way.

Be Honest, Be Vulnerable

However, now that I'm "older and wiser" instead of bottling that resentment up, I voice it and his reaction are hilarious. "I thought I wasn't allowed to ... I didn't think you would let me touch your head – you're always hiding it."

Given how insecure I was/am, I had envisioned this shining-armor boyfriend knight rising up, grabbing my bald head and kissing it all over, forcing me to get over my insecurities.

I had wanted all of this without saying I wanted him to do any of the above, I wanted him to just figure it out and do it. Brilliant I know ... I expected my boyfriend to be a mind reader.

I think we forget when going through a hard time just how important being vulnerably honest with the people you love is. Even if you don't have a vow with your friends or boyfriend, you can make your own set of vows by not holding anything back.

By stating your fears, you are taking away any thoughts of feeling indebted. By expressing yourself, you are not allowing an "internal resentment fire" to grow inside you. By allowing people who love you to be there for you, you are creating your own specific set of vows that will help you through your cancer/illness journey.

People who love you want to help you, but most just don't know how. So instead of getting frustrated that they aren't being the mind readers you want them to be, let them know what you need and the good seeds will rise to the top and pass the relationship test with flying colors, vow or no vow attached.

Check back for updates every Thursday: Diem will be chronicling her journey through fertility treatments, chemotherapy and her quest to educate others about ovarian health exclusively for PEOPLE.com. You can also follow her on Twitter @DiemBrown.

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Study: NYC better than LA at cutting kids' obesity

NEW YORK (AP) — A new study shows New York City is doing better than Los Angeles in the battle against childhood obesity, at least for low-income children.

From 2003 to 2011, obesity rates for poor children dropped in New York to around 16 percent. But they rose in Los Angeles and ended at about 20 percent.

The researchers focused on children ages 3 and 4 enrolled in a government program that provides food and other services to women and their young children.

The Centers for Disease Control and Prevention released the study Thursday.

The authors noted that the Los Angeles program has many more Mexican-American kids. Obesity is more common in Mexican-American boys than in white or black kids.

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Data, eBay earnings lift Wall Street to five-year high

NEW YORK (Reuters) - Wall Street rose on Thursday, with the S&P 500 climbing to a five-year intraday high, on improved housing and jobs data along with better-than-expected results from online marketplace eBay .

The data showed the number of Americans filing new claims for unemployment benefits fell to a five-year low last week, while groundbreaking for homes rose to the fastest pace in four years last month.

Strength in the housing and labor markets is key to sustained growth and higher corporate profits. Job market improvement helps stimulate consumer spending while a recovery in housing means more purchases of appliances, furniture and other household goods as well as a source of employment.

"The real estate numbers all look good, sales looked good, prices looked good, housing starts looked good," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.

"The only thing that still doesn't look really good in my mind are the employment numbers but even the claims were pretty good and inflation seems to be nonexistent so what's to stop the party from going?"

The Dow Jones industrial average <.dji> gained 82.97 points, or 0.61 percent, to 13,594.20. The Standard & Poor's 500 Index <.spx> advanced 8.31 points, or 0.56 percent, to 1,480.94. The Nasdaq Composite Index <.ixic> rose 17.12 points, or 0.55 percent, to 3,134.66.

PulteGroup Inc shares gained 4.9 percent to $20.29 and Toll Brothers Inc advanced 2.2 percent to $35.68. The PHLX housing sector index <.hgx> climbed 2.1 percent.

EBay's shares rose 3 percent to $54.47 a day after it reported holiday quarter results that just beat Wall Street expectations. It gave a 2013 forecast that was within analysts' estimates.

The S&P is on track for its third consecutive advance, which pushed the index above an intraday peak set in September to its highest since December 2007.

But gains were tempered by weakness in the financial sector, with Bank of America down 4.3 percent to $11.27 and Citigroup off 3 percent to $41.22 after they posted their results.

Bank of America's fourth-quarter profit fell as it took more charges to clean up mortgage-related problems. Citigroup posted $2.32 billion of charges for layoffs and lawsuits, while its new chief executive cautioned the bank needed more time to deal with its problems.

The S&P financial sector index <.spsy> slipped 0.14 percent as the only one of the 10 major S&P sectors to decline.

S&P 500 corporate earnings for the fourth quarter are expected to rise 2.3 percent, Thomson Reuters data showed. Expectations for the quarter have fallen considerably since October when a 9.9 percent gain was estimated.

With investors anticipating the current earnings season to be lackluster, their focus will be on the corporate earnings outlook for the months ahead, analysts said.

Shares of Boeing extended recent declines after the United States and other countries grounded the company's new 787 Dreamliner after a second incident involving battery failure. Boeing shed 0.4 percent to $74.05 and is down 1.5 percent for the week so far.

Market breadth was solid, with advancers outpacing decliners on the New York Stock Exchange 2,234 to 650, while on the Nasdaq the ratio was 1,602 to 762 in favor of advancing stocks.

(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Nick Zieminski)

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