* Wall Street flat to lower in early trading
* Samsung helps lift Asian shares to 7-week highs
* Dollar gains vs euro, Swiss franc
* BOJ's Kuroda holds off on fresh stimulus
(Updates to New York market openings)
By Caroline Valetkevitch
NEW YORK, Oct 7 (Reuters) - Wall Street and other stock
indexes gave up earlier gains on Wednesday as concern grew about
the outlook for U.S. earnings and oil prices reversed direction
after an early surge.
U.S. stocks turned lower in late morning trading, led by
declines in tech shares. Reduced profit forecasts from Adobe
ADBE.O , Yum Brands YUM.N , Rexel RXL.PA and Kloeckner
KCOGn.DE added to gloom about the earnings picture.
"Tech investors are very worried heading into earnings
season and this has been an overhang with many of the tech
stalwarts having a bullseye on their back. Worries about
earnings into the back half is a major issue for the Street,"
said Daniel Ives, senior analyst at FBR Capital.
Oil prices initially extended recent gains as data showed
the market was beginning to tighten, but prices turned lower in
late U.S. morning trading.
The Dow Jones industrial average .DJI fell 14.83 points,
or 0.09 percent, to 16,775.36, the S&P 500 .SPX lost 2.64
points, or 0.13 percent, to 1,977.28 and the Nasdaq Composite
.IXIC dropped 16.14 points, or 0.34 percent, to 4,732.22.
The pan-European FTSEurofirst 300 .FTEU3 was down 0.1
percent, while MSCI's all-country world stock index
.MIWD00000PUS was up 0.4 percent.
Asian shares reached a seven-week high. South Korea's
Samsung Electronics (KS:005930) 005930.SS helped sentiment when it issued
a better-than-expected profit guidance.
Crude had jumped earlier after a U.S. government report said
global oil demand should increase by its fastest rate in six
years in 2016.
Brent LCOc1 was down 1 percent at $51.35 after rising to a
high of $52.99 a barrel. It jumped as much as $3 on Tuesday to
close above $50 for the first time in a month. U.S. light crude
CLc1 was down 66 cents at $47.89.
The U.S. dollar rose against the euro and Swiss franc, while
the yen gained against the dollar after the Bank of Japan left
monetary policy unchanged. ID:nL1N12713A
Although the Bank of Japan held off on expanding stimulus on
Wednesday, expectations of more support rather than less are
growing as worries mount over a global economic slowdown. This
week, the International Monetary Fund again cut its growth
forecast.
The potential for more stimulus from the European Central
Bank and Bank of Japan has contributed to a backdrop of
accommodative central bank policy, along with expectations that
a Federal Reserve rate increase will remain on hold until 2016.
"Investors are a bit more confident about the global recovery
and the fact that central banks aren't going to get in the way
of the global recovery," said Chris Gaffney, president of
EverBank World Markets in St. Louis.
Analysts have been cutting forecasts for U.S. third-quarter
earnings since the start of the quarter.
While Citi strategists have warned that analyst earnings
forecasts are too optimistic, they have also backed the view
that the bull market has yet to die, predicting global equities
will still rise 20 percent through to the end of 2016. The
market is "already pricing in" a gloomier scenario, they argue.
U.S. Treasuries prices fell. Benchmark 10-year Treasuries
US10YT=RR were down 9/32 in price to yield 2.067 percent, up 3
basis points from late Tuesday.