US STOCKS-Wall St falls as energy, financials slide ahead of first presidential debate

* First U.S. presidential debate due to start at 9 p.m. EDT
* Democratic sweep modestly positive for S&P 500 profits -
GS
* Consumer confidence rebounds in September
* Indexes down: Dow 0.57%, S&P 500 0.42%, Nasdaq 0.05%

(Updates to early afternoon)
By Devik Jain and Shreyashi Sanyal
Sept 29 (Reuters) - U.S. stocks fell in choppy trading on
Tuesday, with financials and energy stocks leading declines
after substantial gains a day earlier as attention turned to the
first presidential debate.
All of the 11 major S&P 500 sectors were lower, with the S&P
500 energy sector .SPNY plunging 3.4%, edging closer to a low
hit in early April.
President Donald Trump and Democratic challenger Joe Biden
will lock horns in their first 90-minute televised debate in
Cleveland, with the election now just five weeks away. Polls
show Biden leading Trump nationally and in a number of key
battleground states. With Trump declining to guarantee he will accept the result
on Nov. 3, speculation around the election has helped push up
volatility .VIX on Wall Street, with analysts warning of more
to come in the final weeks of the campaign.
"The markets will stay choppy between now and the end of the
year, especially with all the uncertainty surrounding the
election," said Eric Marshall, portfolio manager at Hodges
Capital in Dallas.
"Today is really just some profit taking on the heels of a
strong broadening out market rally that people were somewhat
surprised by on Monday."
Goldman Sachs analysts said a victory for Biden in the
election, along with the Democratic party controlling the Senate
and the House of Representatives, would be slightly beneficial
to profits for S&P 500 firms through 2024. Among sectors, a stronger "green energy" push under a Biden
administration could support alternative energy stocks, while a
Trump victory could spell additional relief for companies that
benefited from the president's corporate tax cuts. "The market has its eyes set on the debate ... a potential
change in tax plan could really have a significant impact on the
stock market," said Thomas Hayes, chairman at Great Hill Capital
LLC in New York.
While all three main indexes are on track for their first
monthly decline since the coronavirus-driven selloff in February
and March, the S&P 500 .SPX is still on course to rack up its
two best back-to-back quarters since 2009.
The tech-heavy Nasdaq .IXIC is on track for its biggest
two-quarter jump since the dotcom crash in 2000.
Data showed U.S. consumer confidence rebounded more than
expected in September as households' views of the labor market
improved.
Meanwhile, U.S. House Speaker Nancy Pelosi said she hoped to
have a coronavirus aid deal with the White House this week,
after speaking with Treasury Secretary Steve Mnuchin for about
50 minutes and making plans for further talks on Wednesday.
At 12:58 p.m. ET the Dow Jones Industrial Average .DJI was
down 156.62 points, or 0.57%, at 27,427.44, the S&P 500 .SPX
was down 14.07 points, or 0.42%, at 3,337.53 and the Nasdaq
Composite .IXIC was down 5.69 points, or 0.05%, at 11,111.83.
Sorrento Therapeutics SRNE.O rose 18.1% after the
drugmaker said both of its COVID-19 antibody candidates showed
potent neutralizing activities against the novel coronavirus.
Declining issues outnumbered advancers for a 2.00-to-1 ratio
on the NYSE and for a 1.29-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and no new low,
while the Nasdaq recorded 57 new highs and 27 new lows.