By Sara Sjolin, MarketWatch
Goldman Sachs rises after earnings
U.S. stocks were headed lower on Thursday, with investors
shaking off a stream of better-than-expected earnings, amid a mixed
batch of economic reports and a retreat in crude-oil prices.
The Dow Jones Industrial Average (DJI) was down more than 44
points, or 0.2%, to 18,068, while the S&P 500 index (SPX) was
off 6 points, or 0.3% to 2,100.
Meanwhile, the Nasdaq Composite (RIXF) was down 8 points, or
0.2%, at 5,002.
The move lower for stocks marked a pullback from Wednesday's
advances (http://www.marketwatch.com/storyno-meta-for-guid), when
better-than-expected earnings and a jump in oil prices sent the
benchmarks close to record closing levels. The S&P 500 ended
just 0.5% shy of its all-time close of 2117.39 hit Monday, March 2,
while the Dow average (DJI) missed its record by 1%.
Part of the drag on stocks was a mixed bag of economic
indicators including, construction on new homes, which were weaker
than expected.
Construction starts rose to annual rate of 926,000 in March, but
analysts polled by MarketWatch had expected a 1.04 million
(http://www.marketwatch.com/story/housing-starts-thaw-in-march-after-february-freeze-2015-04-16),
while a report of people seeking new U.S. unemployment benefits in
the second week of April. Initial jobless claims rose to 294,000
(http://www.marketwatch.com/story/jobless-claims-hit-highest-level-in-six-weeks-2015-04-16)in
the week ended April 11, from a revised 282,000 from the week
prior.
Corporate results on Thursday, however, have largely been
upbeat. Goldman Sachs Group Inc.(GS) reported profit and revenue
ahead of forecasts.
Citigroup Inc.(C) posted first-quarter results that beat
analysts expectations for profits but missed on revenues.
Also Reporting ahead of the bell, UnitedHealth Group Inc.(UNH)
raised its outlook for 2015 earnings to $6.15 to $6.30 per share.
Its prior outlook was for $6.00 to $6.25 per share. The heath-care
company's shares rose 2.8% premarket after it released
first-quarter results.
Shares of Philip Morris International Inc.(PM) picked up 4.6%
ahead of the market open after the cigarette maker reported a dip
in first-quarter profit, but raised its earnings guidance
(http://www.marketwatch.com/story/philip-morris-raises-guidance-shipment-volume-up-2015-04-16)
for the full year.
BlackRock Inc.(BLK) reported adjusted first-quarter earnings of
$4.89 a share, beating FactSet estimates.
Fed speakers: Investors will be looking ahead to a healthy
lineup of Federal Reserve speakers within a two-hour time frame on
Thursday.
The hefty Fed lineup comes after comments on Wednesday from St.
Louis Fed President James Bullard
(http://www.marketwatch.com/story/feds-bullard-says-rate-hikes-are-needed-for-coming-boom-2015-04-15)
and Richmond Fed President Jeffrey Lacker
(http://www.marketwatch.com/story/feds-lacker-strong-case-can-be-made-for-higher-rates-2015-04-15),
when each made a case for raising interest rates soon.
Economic data: Philadelphia Fed's manufacturing index is
expected at 10 a.m. Eastern. Economists polled by MarketWatch
expect the manufacturing index to rise to 6 in April from 5 in
March.
Other markets: Asian bourses closed mostly higher
(http://www.marketwatch.com/storyno-meta-for-guid), while the major
European indexes were mired in the red
(http://www.marketwatch.com/storyno-meta-for-guid).
Crude oil (CLK5) pulled back
(http://www.marketwatch.com/storyno-meta-for-guid)after Wednesday's
6% rally. Metals rose, and the dollar
(http://www.marketwatch.com/storyno-meta-for-guid) moved lower.
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