US STOCKS-Wall St recoups losses on BP, Goldman; Google off late

                                
  
                                
 * BP says no oil is leaking from its blown-out well
                                
 * Goldman's stock rises ahead of SEC announcement
                                
 * Dow off 0.1 pct, S&P up 0.1 pct, Nasdaq off 0.03 pct
                                
 * For up-to-the-minute market news see [STXNEWS/US]
 (Updates with Goldman details, Google after the bell, volume)
                                
 By Leah Schnurr
                                
 NEW YORK, July 15 (Reuters) - U.S. stocks ended little changed on
Thursday, recouping losses late in the day, led by a sudden
turnaround in Goldman Sachs and BP.
                                
 BP's <BP.N> U.S.-listed shares jumped 7.6 percent after the
company said no oil is leaking from its blown-out well in the Gulf of
Mexico for the first time since the accident began in April.  For
details, see [ID:nLDE66E0MK]
                                
 Goldman Sachs' <GS.N> gains coincided with the Securities and
Exchange Commission saying that it would make a "significant
announcement" later in the afternoon. The announcement prompted
speculation the SEC was going to settle fraud charges with Goldman
Sachs, which proved to be true. Shares of Goldman rose 4.4 percent to
$145.22.
                                
 The potential resolution of two major overhangs -- BP's oil spill
and fraud charges against Goldman Sachs by U.S. regulators -- was
enough to turn market sentiment around in the last half hour.
                                
 "In essence, you'll have 'closure' on two issues," said Quincy
Krosby, market strategist at Prudential Financial in Newark, New
Jersey.
                                
 "An announcement along the lines of BP's announcement, and the
Goldman Sachs issue closed, if that's what it is, that would help the
tone of the market quite handsomely."
                                
 Goldman said it would pay $550 million to settle SEC charges that
it misled investors in a subprime mortgage product. Goldman's shares
continued to climb after the bell, rising 2.9 percent to $149.40.
[ID:nWEN7077]
                                
 The Dow Jones industrial average <.DJI> dipped 7.41 points, or
0.07 percent, to end at 10,359.31. The Standard & Poor's 500 Index
<.SPX> added 1.31 points, or 0.12 percent, to 1,096.48. The Nasdaq
Composite Index <.IXIC> was off 0.76 of a point, or 0.03 percent, to
2,249.08.
                                
 Despite the turnaround, the Dow and Nasdaq both ended a hair
lower, snapping a seven-day winning streak.
                                
 BP ended up at $38.92 after it said initial results showed a
newly placed cap had completely contained the flow of oil from the
ruptured well.
                                
 The three major U.S. stock indexes spent most of the day in
negative territory, weighed down by a subdued outlook on the economy
from JPMorgan Chase & Co <JPM.N> and disappointing factory data.
                                
 An unexpected fall in regional factory activity and a third
straight month of decline in producer prices raised concerns about
deflation, cooling enthusiasm for the strong start to the earnings
season that had lifted stocks off recent lows.  [ID:nN15208925]
                                
 JPMorgan Chase & Co <JPM.N> reported quarterly earnings that beat
expectations, but offered a cautious outlook on the economy. Much of
the company's gains came from areas that cannot be a stable source of
income in the future.[ID:nN13247761]
                                
 The stock recovered to add 0.3 percent to $40.46, but its sober
economic view hit the shares of competitors Citigroup Inc,  <C.N>,
down 1.2 percent at $4.16, and Bank of America Corp <BAC.N>, which
dropped 1.8 percent to $15.39. Both report their earnings on Friday.
The S&P Financial Index <.GSPF> dipped 0.1 percent.
                                
 GOOGLE DISAPPOINTS
                                
 Earnings and guidance from bellwethers such as Alcoa <AA.N> and
Intel <INTC.O> have been strong, but that has done little to counter
the disappointing economic data, given that market leaders can do
well even in a weak economy.
                                
 But Google Inc <GOOG.O> disappointed after the bell, reporting
profit that missed expectations and driving its shares down 4.7
percent to $470.79 in extended-hours trading. [ID:nN15232993]
                                
 On the bright side for technology, Advanced Micro Devices Inc
<AMD.N> reported results after the bell that topped expectations as
corporate spending on tech hardware strengthened. Its shares climbed
4.6 percent to $7.75 in extended-hours trading. [ID:nN15264825]
                                
 Meanwhile, the U.S. Congress approved a broad overhaul of
financial regulation, sending it to President Barack Obama to sign
into law. Senate Democratic Leader Harry Reid said he believes Obama
will sign the bill into law later in the day. [ID:nN15367377]
                                
 In a busy day for economic news, the Philadelphia Federal Reserve
Bank said factory activity in the mid-Atlantic region fell
unexpectedly, while the New York Federal Reserve Bank said New York
manufacturing hit the lowest since December 2009.
                                
 The U.S. Labor Department said the Producer Price Index declined
for a third straight month. In June, the PPI fell 0.5 percent,
compared with the dip of 0.1 percent expected by economists polled by
Reuters.
                                
 About 8.11 billion shares traded on the New York Stock Exchange,
the American Stock Exchange and Nasdaq, below last year's estimated
daily average of 9.65 billion.
                                
 Declining stocks slightly outnumbered advancing ones on the NYSE,
with 1,523 shares falling and 1,459 rising. On the Nasdaq, two stocks
fell for every one that rose.
 (Additional reporting by Rodrigo Campos; Editing by Jan Paschal)