(Fixes typo in headline)
* Goldman set for worst day since June Brexit vote results
* J&J top drag on S&P after revenue misses expectations
* Indexes down: Dow 0.53 pct, S&P 0.27 pct, Nasdaq 0.17 pct
By Chuck Mikolajczak
NEW YORK, April 18 U.S. stocks declined on
Tuesday, weighed down by a drop in Goldman Sachs and Johnson &
Johnson in the wake of their quarterly results, while
geopolitical tensions continued to fuel investor caution.
Goldman Sachs lost 4.7 percent to $215.58 after hitting its
lowest level since Nov. 29 following earnings that missed
expectations as trading revenue dropped.
Goldman shares were on track for their biggest daily
percentage drop since June 24, a day after Britain voted to
leave the European Union.
Johnson & Johnson slumped 3.3 percent and was on
pace for its worst day in over eight years after the company's
quarterly revenue fell short of analysts' expectations.
"Those tend to be companies who manage earnings a little
better, the fact they have missed perhaps isn’t a very good
indication," said Tim Ghriskey, chief investment officer of
Solaris Asset Management in New York.
"There is some nervousness out there about the economy,
geopolitical issues and general unpredictability as well."
Healthcare, down 1.0 percent, and financials, off
0.6 percent, were the two worst-performing of the 11 major S&P
Cardinal Health, down 11.4 percent, also weighed on
healthcare after a disappointing profit forecast overshadowed a
deal to buy medical supplies businesses from Medtronic for
Although Bank of America reported a
better-than-expected profit, its shares reversed course to trade
slightly lower, falling in line with the broader market.
A rough start to the earnings season could add to investor
concerns about market valuations, after a strong post-election
rally largely based on expectations of pro-growth policies from
President Donald Trump's administration drove major indexes to
The Dow Jones Industrial Average fell 109.25 points,
or 0.53 percent, to 20,527.67, the S&P 500 lost 6.25
points, or 0.27 percent, to 2,342.76 and the Nasdaq Composite
dropped 10.11 points, or 0.17 percent, to 5,846.68.
Safe-havens continued to be in favor, with gold and U.S.
Treasury prices climbing ahead of crucial presidential elections
in France, rising tensions between the United States and North
Korea and the early calling of elections in Britain.
Netflix, was down 2.6 percent at $143.50 after the
video-streaming services provider reported weaker-than-expected
subscriber numbers in the first quarter.
Despite the high profile earnings misses, first quarter
results have been promising overall. According to Thomson
Reuters data through Tuesday morning, of the 45 companies in the
S&P 500 that have reported results, 76 percent have topped
Declining issues outnumbered advancing ones on the NYSE by a
1.28-to-1 ratio; on Nasdaq, a 1.39-to-1 ratio favored decliners.
The S&P 500 posted 16 new 52-week highs and 2 new lows; the
Nasdaq Composite recorded 34 new highs and 50 new lows.
(Reporting by Chuck Mikolajczak; Editing by Cynthia Osterman)