NEW YORK (Reuters) – U.S. shares ended barely higher on Tuesday, with the S&P 500 inching nearer to its all-time excessive following a string of largely positive earnings, whereas a drop in healthcare shares restricted the advance.
FILE PHOTO: Traders work on the ground on the New York Stock Exchange (NYSE) in New York, U.S., April eight, 2019. REUTERS/Brendan McDermid
All three main U.S. inventory indexes ended the session in positive territory, with the S&P 500 hovering inside a proportion of its document excessive reached in September.
Bank of America Corp, Johnson & Johnson, BlackRock Inc, UnitedHealth Group Inc and others posted quarterly earnings that surpassed analyst expectations.
But inventory actions following the experiences had been blended.
“You see different numbers and different drivers,” stated John Lynch, chief funding strategist for LPL Financial in Charlotte, North Carolina. “We’ve had some mixed messages from financials and healthcare.”
With reporting season in full swing, analysts now count on first quarter S&P 500 earnings to have dropped 1.eight% year-on-year, in keeping with Refinitiv information. While a stable enchancment over current estimates, it might nonetheless mark the primary earnings decline since 2016.
Of the 42 S&P 500 firms which have posted up to now, 81% have crushed consensus, in contrast with the 65% common beat price going again to 1994.
Johnson & Johnson got here in above analyst estimates, largely attributable to gross sales progress at its prescription drugs unit, driving the inventory 1.1% higher.
But UnitedHealth Group, which additionally reported better-than-anticipated first-quarter revenue and hiked its 2019 earnings forecast, fell four.zero%, doubtless on account of regulatory worries. The inventory was the most important drag on the Dow.
Rivals Anthem Inc and Cigna Corp additionally slid, dropping 6.eight% and seven.eight%, respectively.
The S&P 500 Healthcare Index closed down 2.zero%
The second greatest U.S. financial institution by property, Bank of America missed income expectations however its revenue beat forecasts on account of value chopping and mortgage will increase. Its shares edged up zero.1%.
BlackRock, the world’s largest asset supervisor, gained three.2% after blowing previous Street expectations and raking in $65 billion in new investor money within the first quarter.
The Dow Jones Industrial Average rose 67.89 factors, or zero.26%, to 26,452.66, the S&P 500 gained 1.48 factors, or zero.05%, to 2,907.06 and the Nasdaq Composite added 24.21 factors, or zero.three%, to eight,000.23.
Of the 11 main sectors within the S&P 500, seven ended the session within the black.
Financials had been the most important proportion winners, rising 1.four%.
Streaming firm Netflix Inc dipped in after-hours buying and selling after it posted first quarter outcomes.
International Business Machines Corp additionally fell post-market following the blue-chip tech firm’s earnings report.
Advancing points outnumbered declining ones on the NYSE by a 1.23-to-1 ratio; on Nasdaq, a 1.28-to-1 ratio favored advancers.
The S&P 500 posted 57 new 52-week highs and 6 new lows; the Nasdaq Composite recorded 96 new highs and 41 new lows.
Volume on U.S. exchanges was 6.57 billion shares, in comparison with the 6.87 billion common over the past 20 buying and selling days.
Reporting by Stephen Culp; Editing by Alistair Bell