July 16, 2012 / 4:28 PM / 5 years ago

US STOCKS-Wall St dips on data but Citi, Visa provide support

* Retail sales unexpectedly dip in latest month

* Glaxo acquires Human Genome; private equity to buy Par Pharma

* Visa shares hit all-time high, Mastercard also rises

* Indexes down: Dow 0.25 pct, S&P 0.14 pct, Nasdaq 0.13 pct

By Rodrigo Campos

NEW YORK, July 16 (Reuters) - U.S. stocks dipped on Monday, weighed by tepid retail sales data, but gains in some financial shares and an oversold market gave Wall Street support.

Citigroup shares rose 1 percent after profit fell but came in above estimates, while Visa shares hit an all-time high and Mastercard also rose after a lawsuit settlement agreement last week.

The S&P 500 is up roughly 7 percent from a low hit early in June despite consistently worsening economic data. Historic low yields in bonds and expectations that the Federal Reserve could intervene to support the slowing economy have been cited as some of the reasons for investors to stick with equities.

Sentiment was soured Monday after data showed U.S. retail sales fell for a third straight month in June as demand slumped for everything from cars and electronics to building materials.

"Three months in a row of lower retail sales is pretty concerning. People are going to have to lower their GDP estimates. Given that, I'm surprised the market is holding so well," said Paul Zemsky, head of asset allocation at ING Investment Management in New York.

"It could be expectations that earnings could come out better than feared. The market did kind of take its expectations down quite a bit in the past weeks."

Negative to positive earnings guidance from S&P 500 companies for the second quarter is 3.3 to 1, the worst since 2008, Thomson Reuters data show.

The Dow Jones industrial average fell 32.58 points, or 0.25 percent, to 12,744.51. The S&P 500 Index dropped 1.96 points, or 0.14 percent, to 1,354.82. The Nasdaq Composite lost 3.86 points, or 0.13 percent, to 2,904.61.

The S&P 500 has fallen seven of the last eight days.

Retail sales unexpectedly fell 0.5 percent in June, and a separate report showed manufacturing in New York state rose in July by a bit more than forecast.

The WTO ruled in favor of the United States in a case challenging a virtual monopoly on China's electronic payments market, in a decision that may boost foreign suppliers like Visa , Mastercard and American Express.

The decision comes after last Friday's agreement by Visa, Mastercard and major banks to pay a $7.25 billion settlement with U.S. retailers, roughly in line with what the credit card companies had reported setting aside.

Citigroup reported adjusted second-quarter earnings that beat expectations, sending shares up 0.9 percent to $26.89. The results follow JPMorgan Chase & Co's on Friday, which contributed to gains of 1 percent on major indexes.

GlaxoSmithKline is to acquire its long-time partner Human Genome Sciences Inc for $3 billion, ending a three-month hostile pursuit of the U.S. biotech company on friendly terms after sweetening its offer. Shares of Human Genome rose 4.6 percent to $14.20.

In another healthcare deal, private equity firm TPG said it would buy U.S.-based Par Pharmaceutical for $1.9 billion, sending Par shares up 37 percent to $50.02.

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