U.S. Stocks Trim Decline as Banks Gain, Valeant Off Earlier Lows

U.S. stocks pared a decline as banks gained amid increased bets for higher interest rates, while Valeant Pharmaceuticals International Inc. trimmed a drop that weighed on health-care companies.

The Standard & Poor’s 500 Index dropped 0.1 percent to 2,100.20 at 11:56 a.m. in New York, after earlier falling as much as 0.6 percent.

Equities trimmed a weekly advance, after reaching a three-month high on Tuesday, stalling a rally that boosted the S&P 500 by as much as 13 percent from an August low and carried the benchmark to within 1 percent of its record. Gains in the past two months had been paced by a rebound in commodity shares, after they led declines during a summer selloff sparked by worries that weakness in China’s economy would spread.

More than 20 members of the S&P 500 are scheduled to release results today, including Walt Disney Co. and Kraft Heinz Co. With more than 80 percent of the index’s companies having reported, about 74 percent have beaten earnings estimates, while only 45 percent have topped sales forecasts. Analysts estimate profits dropped 3.9 percent in the third quarter, up from predictions for a 6.1 percent decline a week ago.

Source: Bloomberg

MARKET