US STOCKS-Wall St little changed as bank results offset Apple

                                
   * Morgan Stanley, Wells Fargo results disappoint
                                
 * Apple Inc shares up 4 percent after results late Tuesday
                                
 * Starbucks beats view, stock jumps 14 percent
                                
 * For up-to-the-minute market news click [STXNEWS/US]
 (Recasts, updates prices)
                                
 By Rodrigo Campos
                                
 NEW YORK, July 22 (Reuters) - U.S. stocks seesawed on
Wednesday as disappointing quarterly results from top banks
sparked caution over the health of financials, though sentiment
rose after a robust earnings report from Apple Inc <AAPL.O>.
                                
 The market was weighed down by a third-consecutive
quarterly loss at Morgan Stanley <MS.N> and as rising credit
losses at Wells Fargo & Co <WFC.N> and several regional banks
dented recent optimism about the financial sector's recovery.
                                
 Morgan Stanley shares fell 1.3 percent to $27.20 while
Wells Fargo dropped 6 percent to $23.83. Financials <.GSPF>
were the worst-performing sector in the S&P 500, down 1.5
percent.
                                
 The increase in bad loans at Wells Fargo has broader
implications for the banking sector, said Steve Goldman, market
strategist at Weeden & Co in Greenwich, Connecticut.
                                
 "On top of that, technicals say the market is overbought,"
he said, referring to the recent results-driven market run-up.
                                
 The Dow Jones industrial average <.DJI> edged up 7.18
points, or 0.08 percent, at 8,923.12. The Standard & Poor's 500
Index <.SPX> gained 0.75 points, or 0.09 percent, at 955.43.
The Nasdaq Composite Index <.IXIC> rose 6.46 points, or 0.34
percent, at 1,922.66.
                                
 The Nasdaq ended Tuesday on a 10-day winning streak, its
longest in 12 years.
                                
 Apple posted late on Tuesday quarterly profits that beat
forecasts, helped by robust sales of Mac computers and iPhones
and higher-than-expected gross margins, sending its shares up
more than 4 percent to $158. For details
 see  [ID:nLM82627].
                                
 Also buoying the Nasdaq, Starbucks Corp <SBUX.O> jumped 14
percent to $16.75 as the coffee chain's results topped
expectations. [ID:nN21362287]
                                
 Boeing Co <BA.N> shares were mostly flat after it posted a
17 percent increase in quarterly profit, topping forecasts, but
the plane maker did not say when its long-awaited 787
Dreamliner would be ready to fly. [ID:nN22296609]
                                
 Drugmaker Pfizer Inc <PFE.N> said its second-quarter
earnings fell 19 percent, hurt by a stronger U.S. dollar, but
raised its full-year forecast for earnings, excluding items,
and for revenue. Its shares jumped 3.5 percent to $16.25.
[ID:nN22261377]
                                
 Regional bank KeyCorp <KEY.N> posted a wider-than-expected
loss, hurt by bad loans, and its shares fell 1 percent.
[ID:nN22292475]
                                
 Federal Reserve Chairman Ben Bernanke reiterated in
testimony to the Senate Banking Committee that the U.S.
economic outlook is improving but that supportive policies
would be necessary for a while to prevent rising joblessness
from sapping the recovery.
 (Additional reporting by Chuck Mikolajczak; Editing by Padraic
Cassidy