By Sara Sjolin and Anora Mahmudova, MarketWatch
Procter & Gamble, Boeing earnings disappoint
U.S. stocks switched between small gains and losses in Wednesday
morning trade as investors waited for an announcement from
President Donald Trump's administration's on taxes.
Slight gains, however, were enough to help the Nasdaq Composite
Index score an intraday high at 6,037.22, but it was most recently
trading at break-even levels, a day after the tech-laden index
surpassed the psychologically important level of 6,000 for the
first time ever.
The S&P 500 index was up less than a point at 2,389, but
hovering near its record of 2,395.96 set March 1. Health-care and
consumer-discretionary shares were leading gains, while real estate
and energy shares were among the worst performers.
The Dow Jones Industrial Average inched 24 points, or 0.1%,
higher to 21,019, despite disappointing first-quarter earnings from
Dow components, Procter & Gamble Co
(http://www.marketwatch.com/story/pg-earnings-beat-expectations-but-revenue-misses-2017-04-26).(PG)
and Boeing Co
(http://www.marketwatch.com/story/boeing-shares-fall-premarket-after-revenue-falls-short-of-estimates-2017-04-26).(BA),
which fell around 0.8% and 1.2% respectively after each missed on
revenue forecasts.
The tepid moves come after stocks on Tuesday climbed sharply
higher
(http://www.marketwatch.com/story/us-stocks-poised-to-build-on-rally-with-flood-of-earnings-ahead-2017-04-25),
as investors welcomed upbeat earnings and the possibility of
significant corporate tax cuts
(http://www.marketwatch.com/story/trumps-15-corporate-tax-rate-could-cost-the-government-2-trillion-2017-04-25).
"Given the failure in the first 100 days to get anything
accomplished legislatively, I doubt Wall Street is going to go out
and party on the assumption that Republicans will be able to
translate today's wish list into tomorrow's legislation," wrote
James Meyer, chief investment officer at Tower Bridge Advisors in a
note.
The Trump administration is due to reveal a "massive" tax
package later on Wednesday that will deliver reductions bigger than
"any tax cut ever," the president has said.
Trump won't present the tax announcement himself, but will leave
it to Treasury Steven Mnuchin and National Economic Director Gary
Cohn, according to media reports
(http://thehill.com/policy/finance/330588-mnuchin-cohn-expected-to-roll-out-trump-tax-plan).
The press briefing at the White House is scheduled for 1:30 p.m.
Eastern Time.
Mnuchin, on CNBC before the market open confirmed that the White
House tax plan will include a 15% corporate tax rate, saying that
it would be the biggest tax cut in history.
Read:Trump's tax reform could lift the stock-market to new
heights
(http://www.marketwatch.com/story/trumps-tax-reform-could-lift-the-stock-market-to-new-heights-2017-04-26)
"The tax reform bill will still need Congress's approval to
pass. If Trump is unable to get enough support, it will likely lead
to substantial market disappointment likely to initiate a dollar
and equity sell off," said Devata Tseng, technical analyst at
FXPro, in a note.
Promises of a tax overhaul have been one of the linchpins of
recent gains for risk assets and is likely to be a significant
driver of trading action across asset classes when the blueprint of
the plan is released later.
The dollar traded mostly higher against other major currencies
ahead of the announcement on Wednesday, with the ICE Dollar Index
up 0.4% at 99.177.
Also in focus was a potential government shutdown this weekend.
Some of those concerns, however, may have eased after Trump backed
off on a demand for funding for a wall between the U.S.-Mexico
border
(http://www.marketwatch.com/story/trump-backs-off-demand-for-immediate-border-wall-funding-2017-04-24).
See:Should Wall Street fear a government shutdown? Here's how
stocks fared in the past
(http://www.marketwatch.com/story/should-wall-street-fear-a-government-shutdown-heres-how-stocks-fared-during-past-closures-2017-04-21)
Earnings season: The season continues in full swing, with a
deluge of results. Shares of PepsiCo Inc.(PEP) fell 1.8% even as
earnings beat analyst forecast.
Anthem Inc.(ANTM) shares rose 2.8% after results topped
expectations.
Twitter Inc. (TWTR) soared 10%
(http://www.marketwatch.com/story/twitter-shares-soar-after-first-quarter-earnings-beat-2017-04-26),
after the social media company beat first-quarter earnings
expectations.
Shares of Chipotle Mexican Grill Inc.(CMG) rose 4.9% after the
casual restaurant chain reported first-quarter earnings ahead of
forecasts late Tuesday
(http://www.marketwatch.com/story/chipotle-shares-rally-6-after-companys-earnings-beat-2017-04-25).
Arconic Inc. (ARNC) shares rallied 2.3% after the aerospace and
car maker supplier's earnings out late Tuesday topped Wall Street
estimates
(http://www.marketwatch.com/story/arconic-shares-rally-as-quarterly-earnings-beat-street-view-2017-04-25).
After the market closes, earnings from Amgen Inc.(AMGN), Tractor
Supply Co.(TSCO) and PayPal Holdings Inc.(PYPL) are on tap.
Other markets:Stocks in Asia closed mainly higher
(http://www.marketwatch.com/story/asia-pacific-markets-continue-to-ride-wave-of-gains-2017-04-25),
propelled by optimism over the prospect of a U.S. tax overhaul.
European markets were slightly lower
(http://www.marketwatch.com/story/european-stocks-struggle-to-hold-onto-20-month-high-ahead-of-trump-tax-unveiling-2017-04-26),
after surging to historic highs following the first round of the
French presidential election on Sunday. Centrist Emmanuel Macron
came out on top and will battle against far-right Marine Le Pen in
the second round on May 7--a vote Macron is expected to win.
Read:Emmanuel Macron: 5 things to know about the man poised to
be France's president
(http://www.marketwatch.com/story/emmanuel-macron-5-things-to-know-about-the-man-poised-to-be-frances-president-2017-04-24)
Oil prices
(http://www.marketwatch.com/story/oil-prices-slip-again-as-us-supply-worries-resurface-2017-04-26-11033520)
were lower ahead of the U.S. Energy Information Administration's
supply data out later on Wednesday.
Metals were mixed, with gold prices down 0.3%. The yield on the
10-year Treasury note was flat at 2.33%.
(END) Dow Jones Newswires
April 26, 2017 10:08 ET (14:08 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.