* Market reverses gains from energy shares
* Factory, confidence data better than expected
* McDonald's falls as Goldman drops stock from list
* Dow up 0.2 pct, S&P 500 up 0.3 pct, Nasdaq flat
(Updates to late afternoon, changes byline)
By Chuck Mikolajczak
NEW YORK, May 1 (Reuters) - U.S. stocks turned lower on
Friday in volatile trading as banks fell on concern over what
the government's stress tests will show after the release of
the results was delayed.
Shares of JPMorgan Chase & Co <JPM.N> fell 1.6 percent to
$32.47, making it a top drag on the KBW bank index <.BKX>,
which was down 1 percent.
The results from stress tests of the 19 largest U.S. banks
are expected to be released on May 7, a government source said
Friday, and are expected to show how much capital the weakest
firms will need to raise should the economy weaken further.
[]
"There's some apprehension about the stress tests next week
and the fact that (the results) were pushed back I think is
more of a negative sign," said Michael James, a senior trader
at Wedbush Morgan in Los Angeles.
Economic reports showed the U.S. factory sector shrank
further in April but at a slower pace and consumers felt more
confident about the economy last month than at any time since
September. For details, see []
Energy shares helped stocks to make gains in the afternoon.
Exxon Mobil Corp <XOM.N> was up 1.3 percent at $67.55, and the
S&P energy index gained more than 2 percent after crude oil
futures rose 3 percent to $52.90 a barrel.
"The energy stocks, if you can determine the word cheap,
are reasonably priced," said Carl Birkelbach, chairman and CEO
of Birkelbach Investment Securities in Chicago.
"If the economy is going to turn, which is what the market,
the Fed and Obama are telling us, then naturally energy prices
should go back up again."
The Dow Jones industrial average <> dropped 19.59
points, or 0.24 percent, to 8,148.53. The Standard & Poor's 500
Index <.SPX> dropped 1.00 point, or 0.11 percent, to 871.81.
The Nasdaq Composite Index <> dropped 4.64 points, or 0.27
percent, to 1,712.66.
Investors decided to book some gains after a solid April,
which limited the advance. McDonald's <MCD.N> was the top drag
on the Dow after Goldman Sachs removed the fast-food chain from
its conviction buy list, although it affirmed its positive
rating. []
Shares fell 1.5 percent to $52.49.
April marked the S&P 500's best month in nine years in
terms of percentage gains, with a 9.4 percent climb.
MasterCard Inc <MA.N>, the world's second-largest credit
card network, was also among the laggards after it said
revenues will grow less than expected in 2009. []
MasterCard shares were down 7.3 percent at $170.01.
On Nasdaq, the index was led higher by major technology
companies such as Apple <AAPL.O>, up 1.3 percent to $127.42 and
Research In Motion <RIMM.O>, up 4.8 percent to $72.86.
Shares of Celgene <CELG.O> were the biggest drag on the
index after it reported first-quarter results that were in line
with the company's forecast, but the cancer drugmaker said that
it expects its full-year earnings to come in at the low end of
its previously announced range. []
The Amex Biotechnology Index <.BTK> slipped 1.3 percent.
(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)
