Investors Shrug off Strong Earnings, Markets Dwindle - InvestingChannel

Investors Shrug off Strong Earnings, Markets Dwindle



U.S. stocks fell for a second day on Tuesday as strong corporate earnings failed to boost a market already near record highs.

The Dow Jones Industrial resumed their downward momentum, tossing off 168.79 points to open Tuesday at 33,908.84,

The S&P 500 subtracted 13.74 points to 4,148.52.

The NASDAQ Composite faded 42.49 points to 13,872.28.

Procter & Gamble shares were flat even after the consumer giant reported quarterly earnings that beat expectations with pandemic home-care trends lingering and beauty sales picking up.

Johnson & Johnson shares gained 1% following better-than-expected earnings and revenue. The company also reported $100 million in first-quarter sales of its COVID-19 vaccine that’s on hold in the U.S. while health regulators investigate a rare blood-clotting issue.

Another Dow component, Travelers Companies, rose slightly after quarterly results that topped Wall Street’s estimates. The company also raised its quarterly cash dividend and approved an additional $5 billion of share buybacks.

The first-quarter earnings season got off to a strong start last week as the major U.S. banks reported blowout numbers. Financials earnings have topped expectations by 38%, while others in the S&P 500 have surprised to the upside by 12%, according to data from Credit Suisse.

Tesla rebounded 1.7% after dropping more than 3% in the previous session as bitcoin — which makes up some of Tesla’s balance sheet— tanked over the weekend after hitting an all-time high of $64,841 Wednesday morning, according to data from Coin Metrics.

Streaming giant Netflix is slated to release numbers after the bell. Wall Street analysts expected Netflix to remain a winner in the streaming space even as the pandemic recovery improves.

Prices for 10-Year Treasurys gained, lowering yields to 1.58% from Monday’s 1.61%. Treasury prices and yields move in opposite directions.

Oil prices slumped four cents to $63.34 U.S. a barrel.

Gold prices recovered five dollars to $1,775.60 U.S. an ounce.