Market mixed on uneven earnings reports
NEW YORK — Uneven corporate earnings news left the stock market mixed on Tuesday.
Most major indexes closed slightly lower, except for the Dow Jones industrial average. Yet even there the gain was tied to the increase in one stock, United Technologies.
Better earnings from big banks, health insurers and other companies have helped drive the stock market higher this month. On Tuesday, however, the encouraging and the discouraging seemed evenly matched. Wendy's and United Technologies surged after posting stronger results than financial analysts expected. Netflix and Altria Group, maker of Marlboro cigarettes, sank when their results fell short.
“In the absence of major economic news, the focus is on earnings this week,” said David Joy, chief market strategist at Ameriprise Financial. “And there's nothing today to drive the market dramatically one way or another.”
The Dow rose 22.19 points, or 0.1 percent, to 15,567.74. If not for a 3 percent gain in United Technologies, the Dow would have closed down a point.
United Technologies rose $3.01 to $105.12. The conglomerate said strong orders for commercial airline parts and elevators helped lift its profit.
The Standard & Poor's 500 index fell 3.14 points, or 0.2 percent, to 1,692.39. The Nasdaq composite fell 21.11 points, or 0.6 percent, to 3,579.27.
It was a busy day for earnings as 35 companies in the S&P 500 were scheduled to turn in results. The second-quarter scorecard looks good so far. More than six out of every 10 companies have posted earnings that surpassed Wall Street's expectations, according to S&P Capital IQ.
Analysts forecast that second-quarter earnings for companies in the S&P 500 increased 3.8 percent over the same period last year.
“The bar has been set pretty low,” said Joel Huffman, senior portfolio manager at U.S. Bank Wealth Management. So, it's hardly a surprise that many companies are able to jump over it, he said.
Sales are another story. Analysts expect revenue to shrink 0.7 percent in the second quarter. Huffman said he's encouraged that many banks and makers of consumer-discretionary goods have reported stronger U.S. sales. “It's an indication of the underlying growth in the U.S. economy versus other parts of the world,” he said.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- How to cover work history gaps
- Financial planning for disabled people a little-tapped field
- AT&T evolves beyond phones
- This robot is cute, artificially intelligent and employed
- Developer hopes to make Allegheny Center a tech hub
- Murray Energy expects to lay off as many as 1,800 more
- FAA: Cockpit email system reduces delays
- Home sales slipped in April on tight supply, high prices
- Taxes matter in fund investing, even when there’s no bill
- Parent of Lane Bryant, Justice to buy owner of Ann Taylor for $2B
- American Eagle posts improved first-quarter results