US STOCKS-Wall St weighed down by J&J, bank stocks

                                
 * J&J down after sales miss Wall Street expectations
                                
 * Banks slide, Goldman Sachs downgraded
                                
 * Dow off 0.2 pct, S&P 500 off 0.3 pct, Nasdaq off 0.1 pct
                                
 * For up-to-the-minute market news, click [STXNEWS/US]
                                
(Updates to midafternoon, changes byline)
                                
 By Leah Schnurr
                                
 NEW YORK, Oct 13 (Reuters) - U.S. stocks weakened on
Tuesday as disappointing sales from Johnson & Johnson <JNJ.N>
stirred jitters about the strength of earnings, threatening to
break the S&P 500's six-day winning streak.
                                
 With the last two quarters characterized by cost cutting
and layoffs, investors have been optimistic companies may begin
to show real revenue growth in third-quarter results or
improved outlooks. After a recent rally, investors have grown
cautious as the earnings season picks up pace.
                                
 "If the guidance is good, we can probably survive another
anemic topline growth quarter from most of the major
companies," said Alan Lancz, president at Alan B. Lancz &
Associates Inc in Toledo, Ohio.
                                
 "Investors will still have something to hang their hat on
in that maybe some of the topline growth will come next
quarter."
                                
 Financial shares led the way down with several major banks
reporting results this week. Goldman Sachs Group Inc <GS.N>
fell 1.9 percent to $186.48 after influential banking analyst
Meredith Whitney downgraded the stock, saying the upside could
be limited for the financial services company in the medium
term. For details, see [ID:nBNG167833].
                                
 Johnson & Johnson beat Wall Street's earnings expectations
but reported revenue that came in below forecasts. Shares of
the diversified healthcare company fell 2.2 percent to $61.14.
[ID:nN13145046]
                                
 "Revenue growth is the key thing this earning season, as it
would confirm the economy is growing," said John Canally,
investment strategist and economist for LPL Financial in
Boston.
                                
 The Dow Jones industrial average <.DJI> slipped 18.07
points, or 0.18 percent, to 9,867.73. The Standard & Poor's 500
Index <.SPX> was off 3.38 points, or 0.31 percent, to 1,072.81.
The Nasdaq Composite Index <.IXIC> edged down 1.52 points, or
0.07 percent, at 2,137.62.
                                
 The Nasdaq's losses were limited after Cisco Systems Inc
<CSCO.O> agreed to buy Starent Networks Corp <STAR.O> for $2.9
billion, or $35 per share. Cisco added 0.3 percent to $23.85,
while Starent, which makes telecommunications equipment, spiked
16.7 percent higher to $33.89. [ID:nN13179321].
                                
 Healthcare stocks slid as sweeping U.S. healthcare reform
was poised to clear a key Senate hurdle with the backing of
influential Republican Olympia Snowe. [ID:nN13183672]
                                
 The Morgan Stanley Healthcare Payor index <.HMO> fell 2.4
percent. Investors have fretted about what a potential
healthcare overhaul would mean for the profits of health
insurers.
                                
 Key earnings due after the close included Intel Corp
<INTC.O>, while JPMorgan Chase & Co <JPM.N>, Citigroup Inc
<C.N>, Goldman Sachs and Bank of America <BAC.N> all report
throughout the week.
 (Additional reporting by Ryan Vlastelica; Editing by Kenneth
Barry)