Inventories increase but collapse at UnitedHealth

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Here are 3 things to know about stocks right now

  • The Dow Jones Industrial Average rose on Tuesday with the support of Johnson & Johnson (JNJ – Get Report), which posted solid first quarter results, but its gains were limited by the fall in UnitedHealth group shares (UNH – Get Report).
  • UnitedHealth, the health sector giant, beat Wall Street's targets in the first quarter.
  • Bank of America (BAC – Get Report) declined after the second-largest US bank said that this year's credit revenues would be lower than predicted by Wall Street analysts.

Wall Street: overview

Shares were up on Tuesday, but gains were limited by a sharp decline in UnitedHealth Group shares (UNH – Get Report).

The Dow Jones Industrial Average rose 33 points, or 0.13%, to 26,418. At the highest level of the session, the Dow Jones had gained 145 points. The closing record of the Blue Chip Index, established October 3, 2018, is 26 828. The S & P 500, meanwhile, rose 0.11% Tuesday and the Nasdaq 0.37%.

Johnson & Johnson (JNJ – Get the report) climbed 1.8% to $ 139.02 after beating the first-quarter earnings forecast for Wall Street. The company reported net profit of $ 3.75 billion in the first quarter, or $ 2.10 per adjusted share, compared to $ 4.37 billion, or $ 1.39 per share, a year earlier. Analysts surveyed by FactSet were expecting earnings per share of 2.04 USD. Sales stagnated around $ 20 billion year-over-year.

UnitedHealth Group (UNH – Get Report) lost $ 219.72, down 4.6%, as New York's health insurer beat earnings forecasts for the first quarter of Wall Street. The company said it earned $ 35.6 billion, or $ 3.73 a share on an adjusted basis, from $ 29.2 billion, or $ 3.04 a share, a year ago. Analysts surveyed by FactSet were expecting earnings per share of $ 3.60 per share. Revenues reached $ 60.3 billion, up from $ 55.2 billion a year earlier. The health insurance sector experienced a sharp drop in share prices due to concerns over proposed changes to the rebate system for insurers.

"Cumulative earnings growth in the first quarter for the five largest US public companies is expected to decline 10.1% year-over-year, which is significantly lower than the growth rate of the United States." market overall (-4.3%), "said Jason Pride, director of investments. of private wealth for Glenmede. "This fact has not seemed to count since the beginning of the year, with the top five having returned 22.6%, far ahead of the S & P 500's 15.9% gain. underlines the current trend that investors are still willing to invest in the prospects for future growth. "

Netflix (NFLX – Get Report) and International Business Machines (IBM – Get Report) are due to post their results after the closing bell on Tuesday.

The Federal Reserve reported that industrial production fell 0.1% in March, missing economists' expectations for a gain of 0.1%.

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