US STOCKS-After rally, earnings gloom takes hold on Wall Street

martes 5 de abril de 2016 19:03 GYT

* Goldman Sachs biggest drag on Dow

* Allergan sinks after new tax inversion rules

* Indexes end down: Dow 0.75 pct, S&P 1.01 pct, Nasdaq 0.98 pct (Repeats to additional subscribers)

By Noel Randewich

April 5 (Reuters) - Wall Street fell sharply on Tuesday as investors took gains off the table following a recent rally and ahead of an upcoming quarterly reporting season that is expected to reveal sharply lower earnings.

Following a 13-percent surge over the past seven weeks, the S&P 500 declined 1.01 percent, with all 10 sectors down and a sharp drop in pharmaceutical company Allergan.

It was the S&P's first decline in six sessions, leaving the index flat for 2016.

As S&P 500 companies hand in their first-quarter reports over the next several weeks, average earnings are expected to fall 7.1 percent from the year-ago period, with the energy sector weighing most heavily, according to Thomson Reuters data.

"General consensus is that we're going to see declining earnings," said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois. "The big question is how big are those declines going to be?"   Continuación...