Stocks in the U.S. registered a mixed performance on Tuesday as companies begin to release their second quarter earnings. Anxiety over the direction of crude oil prices and stimulus measures to jump-start economies in Europe and Asia are also weighing in on stocks.
The blue chip index Dow Jones Industrial Average (INDEXDJX:.DJI) was the only gainer yesterday among the U.S. top-three equity indices and remains mostly unchanged today. The Dow gained 25.96 points to climb 0.1% over its previous closing mark and is holding that level. Tuesday’s gain marked the eighth day of gains for the Dow and the sixth day of a record close.
Johnson & Johnson (NYSE:JNJ) boosted the Dow during Tuesday’s session after the company beat estimates in the latest quarter and improved its forecast for the year. The healthcare company posted adjusted EPS of $1.74, ahead of the consensus estimate of $1.68. Revenue of $18.5 billion also exceeded the estimate of $17.97 billion. Shares of Johnson & Johnson rose 1.7%.
The Dow has been quick to shake off the impact of the Brexit vote that shocked the world and rattled markets globally.
S&P 500 and Nasdaq trends downward
The S&P 500 (INDEXSP:.INX) shed 3.11 points to pull back 0.1% from its previous closing mark and is up marginally at 3 points today to gain back those losses. Netflix, Inc. (NASDAQ:NFLX) was a notable reason the S&P 500 fell on Tuesday. Shares of the streaming-video provider fell 13% after it posted its slowest subscriber growth in nearly three years.
The tech-weighted NASDAQ Composite (INDEXNASDAQ:.IXIC) was also rattled by Netflix’s weak subscriber expansion numbers. The tech index declined 0.4% relative to its previous close after it shed 19.41 points. It is rebounding today however, unlike the S&P or the Dow.
Investors on high alert
Investors can be seen trying to be cautious as earnings session rolls out. Second quarter reports so far have been mixed even among large corporations. Though Goldman Sachs Group Inc (NYSE:GS) posted second quarter results that exceeded expectations, its trading business didn’t impress as it remains subdued by rivals.
Investors are also keeping a close eye on Europe as European Central Bank officials meet this week to discuss possible bolder easing measures. Economists are also speculating that the Bank of Japan could roll out unconventional easing to keep the domestic economy out of a looming recession.