* Stocks come off last week's 6 percent gains
* AT&T, Verizon drag Dow on fears about wireless growth
* Energy stocks gain on as crude rises on supply fears
* Dow, S&P down 0.4 pct, Nasdaq off 0.3 pct
* For up to the minute market news, please click on
[].
(Updates to midday, changes byline)
By Deepa Seetharaman
NEW YORK, Jan 5 (Reuters) - U.S. stocks slipped on Monday
as investors took profits from the strong gains of last week,
while concerns about slowing wireless growth in 2009 weighed on
large telecom and cable companies.
Dow components Verizon Communications Inc <VZ.N> and AT&T
<T.N> stumbled after Bernstein Research downgraded both
companies, saying it expected slower wireless growth in 2009.
For details, see []
Financial stocks also took a hit after Deutsche Bank cut
its earnings view on 16 large commercial banks, including
JPMorgan Chase & Co <JPM.N>, the third-biggest drag on the Dow,
after Verizon and AT&T. []
The losses offset optimism about U.S. President-elect
Barack Obama's huge economic stimulus plan, which includes a
proposal for up to $310 billion in tax cuts. Obama is currently
on Capitol Hill to drum up support for the plan from both
political parties. For details see [].
"The experience of last year is still fresh in people's
minds," said Michael James, senior trader at regional
investment bank Wedbush Morgan in Los Angeles, adding that some
investors and traders "ended up regretting not selling to
strength."
The Dow Jones industrial average <> was down 31.62
points, or 0.35 percent, at 9,003.07. The Standard & Poor's 500
Index <.SPX> slipped 3.28 points, or 0.35 percent, at 928.52.
The Nasdaq Composite Index <> lost 4.28 points, or 0.26
percent, at 1,627.93.
After their worst year since the Great Depression, stocks
ended a holiday-shortened week with more than a 6 percent gain
on hopes of a pending recovery last week. The S&P 500 index is
up about 20 percent since its Nov. 20 low.
The S&P index of telecom stocks <.GSPL> fell 4.5 percent
after Bernstein Research cut its ratings and price targets for
AT&T and Verizon. Verizon fell 7 percent to $32.20, while AT&T
lost 4.2 percent to $28.19 on the New York Stock Exchange.
Financial stocks fell after Deutsche Bank said loan losses
for U.S. commercial banks could rise 3 percent by the end of
2010, hurt by a greater percentage of bad loans, greater
consumer leverage and faster problem recognition by banks. That
compares to loan losses of 1.5 percent in the third quarter of
2008. []
The KBW Banks Index <.BKX> fell 1.9 percent, while the S&P
index of financial shares <.GSPF> shed 0.8 percent. JPMorgan
lost 3.8 percent to $30.18.
On the upside, shares of Apple Inc <AAPL.O> rose 4.3
percent to $94.68 after Chief Executive Steve Jobs dispelled
fears about his health. Apple was among the leaders of the
Nasdaq.
The S&P index of energy stocks <.GSPE> also rose nearly 2
percent as crude oil climbed $1 as geopolitical concerns in the
Middle East and Russia heightened supply fears.
[]
Homebuilder shares jumped after the U.S. Commerce
Department released a report on U.S. construction spending that
showed building at the end of the 2008 was stronger than Wall
Street had expected. []
The Dow Jones U.S. Homebuilders <.DJUSHB> index was up 4.7
percent, led by Pulte Homes <PHM.N>, which was up 5.8 percent
to $11.82.
Investors are also looking for a report on monthly vehicle
sales to gain insight into the outlook for the embattled auto
industry.
Still the week's major piece of economic data -- December
U.S. nonfarm payrolls -- will come on Friday. During a visit to
Capitol Hill on Monday, Obama said he expected the report to be
"sobering."
(Editing by Leslie Adler)
