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Nasdaq notches record high close amid bullish earnings

Published 07/18/2017, 04:29 PM
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Investing.com – U.S. stocks closed mostly higher on Tuesday, as investors cheered bullish corporate quarterly reports indicating that the current upward momentum in equities is poised to continue.

Revenues and earnings from Netflix Inc (NASDAQ:NFLX), Goldman Sachs Group Inc (NYSE:GS) and Bank of America Corp (NYSE:BAC) that topped expectations helped set the tone for a positive start to the session.

Netflix said it added 5.2 million subscribers during its second-quarter, confounding Wall Street estimates of a 3.23 million subscribers, boosting shares of the streaming-giant to a record high close.

Despite better-than-expected earnings, Goldman Sachs fell more than 2%, after the investment bank revealed a 40% dip in trading in fixed income, currencies and commodities (FICC).

The raft of corporate quarterly reports offset investor fears that tax-reform could be further delayed, after a key healthcare bill aimed at replacing Obamacare failed to garner enough support, after two Republicans said they would oppose the bill.

Following the announcement, Senate Majority Leader Mitch McConnell called for a vote to repeal Obamacare without an immediate replacement.

In corporate earnings, International Business Machines (NYSE:IBM) reported second-quarter earnings that beat expectations but revenues fell short of Wall Street estimates. Revenue was down year-over-year for the 21st quarter in a row.

The Dow Jones Industrial Average closed lower at 21,574.73. The S&P 500 closed 0.06% higher while the Nasdaq Composite closed at 6344.31, up 0.47%.

‘Bulls and Bears’ on Wall Street

The top Dow gainers for the session: Johnson & Johnson (NYSE:JNJ) up 1.7%, Procter & Gamble Company (NYSE:PG) up 1.2% and Walt Disney Company (NYSE:DIS) up 0.9%

Goldman Sachs Group Inc (NYSE:GS) down 2.6%, Home Depot Inc (NYSE:HD) down 1.1% and Caterpillar Inc (NYSE:CAT) down 0.9%, were among the worst Dow performers of the session.

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