(Recasts to reflect preliminary close of trading, adds analyst

comment)

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Delta Air Lines ( DAL ) shares rise on Q4 profit forecast

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Albemarle advances on PT hike, China's rare earth export

controls

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Costco gains after September sales data

By Stephen Culp

NEW YORK, Oct 9 (Reuters) - U.S. stocks ended in

negative territory on Thursday as investors, left with no

economic data or any sentiment-swaying catalysts, took the

opportunity to consolidate ahead of third-quarter earnings

season.

The S&P 500 and the Nasdaq eased back from Wednesday's

record closing highs, but the blue-chip Dow closed with the

deepest percentage decline.

"The earnings cycle is upon us and there's a wait-and-see in

terms of whether we'll see the same level of consistency of

earnings growth in the coming quarter that we've seen in the

last two quarters," said Matthew Keator, managing partner in the

Keator Group, a wealth management firm in Lenox, Massachusetts.

"Couple that with the uncertainty surrounding the lack of data

coming out of Washington and how the Fed navigates that, it's

natural to see a bit of a pullback."

The stock market's pause comes amid a steep rally that has been

largely driven by the rise of artificial intelligence

technology. The runup has prompted concerns that a bubble is

forming, which could be a harbinger of an impending correction.

Sunday will mark the current bull market's third anniversary;

the benchmark S&P 500 touched the nadir of its current market

cycle on October 12, 2022 on the heels of monetary tightening

from the Fed. Over that time period, while tech and

tech-adjacent megastocks have driven the index nearly 90%

higher, history suggests the current bull market has more gas in

its tank.

The U.S. government shutdown entered its ninth day, with few

signs of progress. Consequently, market participants continue to

be deprived of essential economic data. And with the start of

third-quarter earnings season just days away, the scarcity of

market-moving catalysts is focusing investors' attention on

remarks from monetary policymakers for clues regarding the

central bank's rate cut intentions through the end of the year.

New York Federal Reserve President John Williams favors more

interest rate reductions before year-end due to risks facing the

weakening labor market, he said in an interview with the New

York Times published on Thursday.

According to preliminary data, the S&P 500 lost 18.50

points, or 0.27%, to end at 6,735.22 points, while the Nasdaq

Composite lost 18.75 points, or 0.08%, to 23,023.95. The

Dow Jones Industrial Average fell 238.58 points, or

0.51%, to 46,363.20.

On Tuesday of next week, JPMorgan Chase ( JPM ), Goldman

Sachs ( GS ), Citigroup ( C/PN ) and Wells Fargo ( WFC ) are slated

to report quarterly results, marking the unofficial launch of

third-quarter earnings season.

Analysts currently predict year-on-year S&P 500 earnings

growth of 8.8% in the July-September period, weaker than the

second quarter's 13.8% and the year-ago quarter's 9.1% annual

growth, according to the most recent data from LSEG.

Delta Air Lines ( DAL ) advanced after it provided an upbeat

forecast for the current quarter, after posting

stronger-than-expected third-quarter earnings.

Other U.S. carriers also gained, boosting the S&P 1500

Airlines index.

U.S. retailer Costco Wholesale ( COST ) rose after reporting

September sales data.

Shares of Albemarle gained ground after brokerage TD

Cowen raised its price target on the lithium producer and as

China tightened export controls on rare earths.