US STOCKS-Wall St set to drop on Goldman charges

* Goldman fraud charges rattle investors

* Halliburton off as net falls, Lilly down after warning

* Shanghai shares tumble as China moves to curb mortgages

* Futures off: Dow 49 pts; S&P 500 5 pts; Nasdaq 4.5 pts

* For up-to-the-minute market news see [STXNEWS/US]
(Adds company results, China mortgage crackdown)

By Rodrigo Campos

NEW YORK, April 19 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) were set to open
lower on Monday as lingering concerns over fraud charges
against Goldman Sachs weighed on investor sentiment.

Bank stocks will be in focus following a steep decline
Friday after U.S. regulators charged Goldman Sachs Group Inc
(GS.N: ) with fraud related to the sale of investments tied to
subprime mortgages. For details see [ID:nN16131161].

Goldman shares fell 1.7 percent to $158 in premarket
trading after dropping nearly 13 percent Friday. The Select
Sector SPDR Financial ETF (XLF.P: ) was off 1.2 percent early
Monday.

“The market was priced for perfection heading into earnings
season, and given the Goldman news and the fact earnings have
been strong but not ahead of whisper numbers, we’re probably
going to get a 5 to 8 percent correction,” said Burt White,
chief investment officer at LPL Financial in Boston.

Questions surrounding Goldman were increasing chances of
tougher financial reforms as politicians in the United States
and Europe called for closer scrutiny and tighter rules for
banks, which could hurt their profits. [ID:nN18153952]

S&P 500 futures (SPc1: ) fell 5 points and were below fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures (DJc1: ) lost 49
points, and Nasdaq 100 futures (NDc1: ) dropped 4.5 points.

Citigroup Inc (C.N: ) shares seesawed premarket after the
bank posted better-than-expected quarterly results.

“Initial results came out pretty good, but I think
(investors are) beginning to put that in the context of an
overbought market and the possibility of financial reform,”
White said.

The Chinese State Council told banks they would be expected
to raise mortgage rates and down payment requirements in an
attempt to cool down real estate speculation. The move rattled
local markets, with Shanghai shares (.SSEC: ) off nearly 5
percent, while Hong Kong’s Hang Seng (.HSI: ) shed 2.1 percent.
[ID:nTOE63G016]

“If we get runaway inflation in China and they decide to
cool down, that would mean a loss of one of the big drivers of
the global economic recovery,” LPL Financial’s White said.

Hasbro Inc (HAS.N: ) added 1.1 percent at $40.30 premarket
after the toymaker reported a better-than-expected quarterly
profit. [ID:nN19229386]

Halliburton Co (HAL.N: ) dropped 1.1 percent to $31.30 after
the oilfield services company reported a 46 percent drop in
first-quarter profit (Read more your timing to make a profit.). [ID:nN19173881]

Eli Lilly and Co (LLY.N: ) was off 2.3 percent to $35.70
after the drugmaker posted better-than-expected first-quarter
profit but warned that costs from the newly passed health
reform law would crimp results for the year.

International Business Machines Corp (IBM.N: ) and Zions
Bancorp (ZION.O: ) are due to report results later Monday.

Airlines will be in the spotlight as widespread disruptions
swept across European and U.S. airports due to a volcanic ash
cloud that forced the cancellation of tens of thousands of
flights.

Investor risk aversion stemming from the Goldman charges
also hit the euro in favor of the low-yielding yen, while the
U.S. dollar index (Read more about the global trade. ) (.DXY: ), a gauge of the greenback against a
basket of currencies, rose 0.5 percent.

U.S. data set for release Monday include the Conference
Board’s Leading Indicators for March, due at 10 a.m. EDT (1400
GMT).

Investment Tools
(Editing by Jeffrey Benkoe)

US STOCKS-Wall St set to drop on Goldman charges