* Wells Fargo results weigh on financials
* AMD drops after revenue warning
* Univ. of Michigan consumer sentiment tops expectations
* Dow off 0.1 pct, S&P 500 off 0.4 pct, Nasdaq down 0.2 pct
By Atossa Araxia Abrahamian
NEW YORK, Oct 12 (Reuters) - U.S. stocks fell on Friday
after revenue from Wells Fargo disappointed investors,
offsetting a jump in consumer sentiment to a five-year high.
Wells Fargo, the biggest U.S. home lender, lost 3.3
percent to $34.03 after its total quarterly revenue of $21.2
billion missed analysts' forecasts.That shortfall prompted
investors to sell other bank shares, in spite of a record
quarterly profit reported on Friday by JPMorgan Chase & Co
. Shares of JPMorgan slid 1 percent to $41.68.
The KBW Bank index lost 2.5 percent.
As a group, S&P 500 companies' quarterly earnings are
expected to fall 3 percent from a year ago, according to Thomson
Reuters data, compared with a forecast calling for a 2.1 percent
decline estimated at the beginning of the month.
"Ultimately, what's going to drive profits will be corporate
earnings that come out over the next three weeks and how these
earnings match up with expectations," said Chuck Carlson, chief
executive officer of Horizon Investment Services in Hammond,
The benchmark S&P index is down 2.2 percent so far this
week, putting it on track for its worst weekly performance since
a 3 percent drop in the week that ended on June 1.
"Expectations are low, and the hurdle has been set lower so
from that standpoint, it shouldn't be too difficult for
companies to surpass."
The Thomson Reuters/University of Michigan's preliminary
October reading on consumer sentiment rose to 83.1, well above
the forecast for a reading of 78.
Advanced Micro Devices Inc fell 10.2 percent to
$2.87 a day after the chipmaker said its third-quarter revenue
probably fell 10 percent from the previous quarter as a weak
global economy and a growing preference for tablets slams the PC
The Dow Jones industrial average dropped 12.54
points, or 0.09 percent, to 13,313.85. The Standard & Poor's 500
Index shed 5.40 points, or 0.38 percent, to 1,427.44. The
Nasdaq Composite Index slipped 5.24 points, or 0.17
percent, to 3,044.17.
Apple recouped some of its losses from Thursday
afternoon and added 0.5 percent to $631.38 on reports that it
would unveil the much anticipated mini iPad on Oct. 23.
U.S.-listed shares of STMicroelectronics
shot up 7.6 percent to $6.07 after Bloomberg reported Europe's
top semiconductor maker was considering a breakup that could
lead to the sale of its struggling mobile-phone chip business.
J.B. Hunt Transport Services jumped 7.4 percent to
$58.84 after posting quarterly earnings, pushingthe Dow Jones
Transportation average up 0.8 percent. Analysts have
noted the divergence between the transports and the industrials
as a troubling sign for the markets.
In another look at the U.S. economy, the U.S. Commerce
Department said its core Producer Price Index, which excludes
volatile food and energy costs, was flat in September, compared