By Lynn Thomasson Dec. 22 (Bloomberg) -- U.S. stocks drifted between gains and losses as a deteriorating outlook for corporate earnings offset expectations that government stimulus efforts will revive the economy. Walgreen Co., the second-largest U.S. drugstore chain, tumbled 3.4 percent after first-quarter profit trailed analysts’ estimates. Monsanto Co. declined 6 percent as Goldman Sachs Group Inc. said the recession will drive down earnings at the world’s largest producer of seeds. General Motors Corp. slid 10 percent following Toyota Motor Corp.’s forecast of its first operating loss in 71 years on plummeting demand. The Standard & Poor’s 500 Index retreated 0.3 percent to 884.84 at 9:34 a.m. in New York. The Dow Jones Industrial Average slipped 4.3 points to 8,574.81. The Russell 2000 Index of small companies added less than 0.1 percent. The S&P 500 capped its second straight weekly gain after the Federal Reserve slashed interest rates to a record low and President George W. Bush granted emergency loans for GM and Chrysler LLC. President-elect Barack Obama is boosting his stimulus package with a goal of creating or saving 3 million jobs over two years after the U.S. entered a recession and the S&P 500 sank 40 percent in 2008. To contact the reporter on this story: Lynn Thomasson in New York at lthomasson@bloomberg.net.

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