* BofA, Wells Fargo, JPMorgan post profit above estimates
* Consumer stocks drop as Dec. retail sales fall short
* Facebook jumps on upgrade, pushes Nasdaq to record
* Dow down 0.14 pct, S&P up 0.10 pct, Nasdaq up 0.39 pct
(Updates to afternoon)
By Noel Randewich
Jan 13 (Reuters) - The S&P 500 rose on Friday after major
U.S. banks kicked off the fourth-quarter earnings season with
strong results, helping fuel confidence about a recent market
Wall Street has surged since President-elect Trump's
unexpected election victory on optimism he will cut corporate
taxes, spend on infrastructure and deregulate banks.
With stocks trading at valuations well above historic
averages, many investors believe further gains will depend on
S&P 500 companies handing in strong report cards over the next
Major banks on Friday did not disappoint: Bank of America
, JPMorgan and Wells Fargo all posted
quarterly profits above analysts' expectations. They also
expressed optimism about 2017 in their first public comments
about earnings since Trump won the election in November.
Their shares surged over 2 percent but later gave up most of
those gains. Wells Fargo was 1.04-percent higher and JPMorgan
added 0.43 percent.
The S&P financial sector has jumped about 17 percent since
the election, outpacing the S&P 500's 6.1 percent rise.
"Earnings are key going forward, and we're off to a decent
start," said Mike Baele, managing director with the Private
Client Reserve of U.S. Bank in Portland, Oregon.
The Dow declined, with McDonald's and other consumer
stocks down after a report showed U.S. retail sales and core
retail sales increased less than expected in December.
Trading volumes were light ahead of a three-day weekend.
At 2:42 pm ET, the Dow Jones Industrial Average was
down 0.14 percent at 19,863.26 points, while the S&P 500
had gained 0.10 percent to 2,272.67.
The Nasdaq Composite added 0.39 percent to
The biggest boost to the S&P 500 and the Nasdaq was from
Facebook, which jumped 1.6 percent after Raymond James
upgraded the stock.
The combined profit of S&P 500 companies is expected to
have risen 6.2 percent in the fourth quarter, according to
Thomson Reuters I/B/E/S.
"We've come a long way very quickly so there's scope for a
pullback, but overall the outlook for 2017 is relatively
positive," said Jon Adams, senior investment strategist at BMO
Global Asset Management.
Advancing issues outnumbered declining ones on the NYSE by a
1.49-to-1 ratio; on Nasdaq, a 2.06-to-1 ratio favored advancers.
The S&P 500 posted 30 new 52-week highs and 3 new lows; the
Nasdaq Composite recorded 113 new highs and 10 new lows.
(Additional reporting by Tanya Agrawal; Editing by Nick