* Nonfarm payrolls report due on Friday
* S&P bank index set for worst day since September
* Department store stocks fall on Macy's, Kohl's reports
* Dow down 0.29 pct, S&P down 0.17 pct, Nasdaq up 0.07 pct
(Updates to afternoon)
By Noel Randewich
Jan 5 Major U.S. stock indexes were poised for
their first loss of the year on Thursday as investors dumped
Macy's and Kohl's after the department stores reported dismal
U.S. stocks have wavered over the past three weeks following
a strong surge in the wake of the November election, with
investors expecting President-elect Donald Trump to stimulate
the economy through tax cuts and infrastructure spending.
Many on Wall Street want evidence that his campaign-trail
promises will be approved by Republican lawmakers and come to
"The market is consolidating, waiting for first-quarter
earnings and then waiting for the Trump agenda and the rhetoric
in Washington and how much of that will go forward," said Jeff
Zipper, managing director for investments at Private Client
Reserve at U.S. Bank in Palm Beach, Florida.
Department stores Macy's dropped 14 percent while
Kohl's slumped 19 percent after the companies said their
holiday sales fell more than expected.
The warnings swept up other department stores in their wake
- Nordstrom fell 7.9 percent and J.C. Penney
fell 6.2 percent.
Online retailer Amazon.com, which has been eating
into the sales of brick-and-mortar retailers, rose 2.8 percent.
The stock provided the biggest boost to the Nasdaq.
The S&P 500 financial index fell 1.3 percent and
was set for its worst day since September, pulled lower by
JPMorgan, Wells Fargo and Bank of America
The index has risen about 17 percent since President-elect
Donald Trump won the election as investors bet on his proposals
aimed at reducing banking regulations.
At 2:43 p.m. ET, the Dow Jones Industrial Average was
down 0.29 percent at 19,884.52 points, while the S&P 500
had lost 0.17 percent to 2,266.82.
The Nasdaq Composite added 0.07 percent to
Adding to the downbeat sentiment was the ADP National
Employment report, which showed fewer-than-expected jobs were
added in the private sector in December.
The report was seen as a hint ahead of Friday's more
comprehensive nonfarm payrolls report that includes both private
and public sector hiring.
While the S&P 500 was down, just five of the 11 major S&P
500 sectors fell, with financials and industrials
weighing the most on the broader index.
Declining issues outnumbered advancing ones on the NYSE by a
1.29-to-1 ratio; on Nasdaq, a 1.43-to-1 ratio favored decliners.
The S&P 500 posted 17 new 52-week highs and no new lows; the
Nasdaq Composite recorded 82 new highs and 15 new lows.
(Additional reporting by Yashaswini Swamynathan in Bengaluru;
Editing by Nick Zieminski)