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Overnight Markets: Wall Street falls as Goldman, J&J earnings disappoint

Healthcare, down 1%, and financials, off 0.8%, were the two worst-performing of the 11 major S&P sectors.

 
Overnight Markets: Wall Street falls as Goldman, J&J earnings disappoint

Wall Street declined on Tuesday, with the S&P 500 falling for the fourth time in five sessions, following poor quarterly results from Goldman Sachs and Johnson & Johnson, while geopolitical tensions added to investor caution.

The Dow Jones Industrial Average fell 114 points, or 0.55%, to 20,523, the S&P 500 lost seven points, or 0.29%, to 2,342 and the Nasdaq Composite fell seven points, or 0.12%, to 5,849.

Goldman Sachs shed 4.7%, shaving more than 70 points off the Dow industrials. The bank posted earnings that missed expectations as trading revenue dropped.

Johnson & Johnson slumped 3.1% for its worst day in 14 months after quarterly revenue fell short of analysts' expectations.

Healthcare, down 1%, and financials, off 0.8%, were the two worst-performing of the 11 major S&P sectors.

Cardinal Health, down 11.5%, 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.

Netflix Inc. slumped 2.64%, as investors grew concerned about the streaming-video company’s ability to attract and retain subscribers. The firm reported late Monday that it had added fewer subscribers than expected during the first quarter.

Shares of United Continental Holdings Inc. reversed gains to drop more than 4% after the United Airlines’s parent company late Monday reported adjusted earnings that beat expectations.

Safe-havens continued to be in favour, with gold and US 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.

In Asia, share markets fell on Wednesday, tracking Wall Street's negative close overnight, with resources and financial shares losing ground.

Stocks in Japan fell, with the Nikkei off 0.18% and the Topix slipping 0.18%. Australia's shares were also lower, with the S&P/ASX 200 down 0.43%.

Hong Kong's Hang Seng Index shed 0.47%, while on the mainland, the Shanghai Composite was off 0.37% and the Shenzhen Composite lost 0.34%. In South Korea, the Kospi shed 0.36%.

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