By Sara Sjolin, MarketWatch
Goldman Sachs rises after earnings
U.S. stocks were under pressure on Thursday, struggling to trade
higher as investors shake off a stream of better-than-expected
earnings, amid a mixed batch of economic reports and a retreat in
crude-oil prices.
"Oil prices are down just a little bit down and we've had a
mixed bag of earnings," noted Randy Frederick, managing director of
trading and derivatives at the Schwab Center for Financial
Research.
The Dow Jones Industrial Average (DJI) briefly turned positive
had been switching between losses and gains until pushing down
about 15 points, 0.1%, at 18,097. About two-thirds of the blue-chip
indexes's 30 components were trading in the red, led by Exxon Mobil
Corp.(XOM).
The S&P 500 index (SPX) was basically flat at 2,104, with
six out of the indexes 10 major sectors showing losses, led by
energy and utilities. Consumer staples and health care proved
bright spots.
Meanwhile, the tech-heavy Nasdaq Composite (RIXF) was down about
5 points, or 0.1%, at 5,005. A soaring Netflix, which was up nearly
15%, helped boost the index.
Choppy trading in stocks on Thursday came after 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 missed its record by 1%.
Part of the drag on stocks Thursday was due to a mixed bag of
economic indicators. That included construction on new homes, which
were weaker than expected, and a manufacturing report that was
better 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.
A rearing of manufacturing also looked strong, with the
Philadelphia Fed's manufacturing index rising to a reading of 7.5
in April, better than MarketWatch estimates of 6. Any reading above
zero signals improving conditions for manufacturing.
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.
Netflix Inc. (NFLX) was trading at a record high of $541.43
after the video-streaming and DVD-rental company, after the close
of trading on Wednesday, said that added 4.88 million subscribers
in the first quarter
(http://www.marketwatch.com/story/netflix-adds-more-users-than-expected-shares-leap-2015-04-15).
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.
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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