(Updates to market close)
* Goldman has worst day since June Brexit vote results
* J&J top drag on S&P after revenue misses expectations
* Indexes down: Dow 0.55 pct, S&P 0.29 pct, Nasdaq 0.12 pct
By Chuck Mikolajczak
NEW YORK, April 18 The S&P 500 fell for the
fourth time in five sessions on Tuesday, weighed down by a drop
in Goldman Sachs and Johnson & Johnson following their quarterly
results, while geopolitical tensions added to investor caution.
Goldman Sachs lost 4.7 percent to $215.59, after hitting its
lowest intraday level since Nov. 29. The bank posted earnings
that missed expectations as trading revenue dropped.
Goldman shares suffered their biggest daily percentage drop
since June 24, a day after Britain voted to leave the European
Johnson & Johnson slumped 3.1 percent for its worst
day in 14 months after quarterly revenue fell short of analysts'
"The Goldman numbers today were disappointing to the market,
in what hasn’t been a bad group of numbers for most of the
banks," said Rick Meckler, president of LibertyView Capital
Management in Jersey City, New Jersey.
"There was some optimism for greater top-line growth and we
have seen in the early numbers that have come out that companies
have certainly learned how to cost cut and manage the bottom
line but they really are having trouble growing the top line."
Healthcare, down 1 percent, and financials, off 0.8
percent, were the two worst-performing of the 11 major S&P
Cardinal Health, down 11.5 percent, also weighed on
healthcare after a disappointing profit forecast overshadowed a
deal to buy medical supplies businesses from Medtronic
for $6.1 billion.
Although Bank of America reported a
better-than-expected profit, its shares reversed course to close
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 113.64 points,
or 0.55 percent, to 20,523.28, the S&P 500 lost 6.83
points, or 0.29 percent, to 2,342.18 and the Nasdaq Composite
dropped 7.32 points, or 0.12 percent, to 5,849.47.
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 calling of early elections in Britain.
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
1.11-to-1 ratio; on Nasdaq, a 1.27-to-1 ratio favored decliners.
The S&P 500 posted 17 new 52-week highs and 2 new lows; the
Nasdaq Composite recorded 40 new highs and 59 new lows.
About 6.07 billion shares changed hands in U.S. exchanges,
compared with the 6.41 billion daily average over the last 20
(Reporting by Chuck Mikolajczak; Editing by Cynthia Osterman
and Nick Zieminski)