Stocks flat as blue-chip earnings disappoint
Associated Press
NEW YORK
Stock indexes finished about where they started Tuesday after a round of disappointing corporate earnings and another drop in home prices. Trading was muted ahead of President Obama’s State of the Union speech, in which he was expected to outline a plan to reduce the deficit.
Four of the 30 companies in the Dow Jones industrial average reported results before the market opened: DuPont, 3M Co., Verizon Communications Inc. and Johnson & Johnson.
3M lost 2 percent after the manufacturing company’s income fell because of higher costs. Johnson & Johnson lost 1.8 percent after reporting a 12 percent drop in income. The maker of Tylenol and other drugs was hammered by costly recalls of its products.
DuPont’s income fell but still beat expectations. Its stock rose 0.3 percent. Verizon’s stock gained 1.6 percent after the phone company’s profits surged.
Another Dow member, American Express Co., fell 2.2 percent after reporting earnings late Monday that came in below analysts’ expectations.
Doug Roberts, chief investment strategist for Channel Capital Research.com, said investors were looking ahead to President Barack Obama’s State of the Union speech Tuesday night and a Federal Reserve meeting that concludes today.
The Fed’s $600 billion bond-buying plan, launched in November, was partially aimed at boosting stock prices. The S&P 500 has gained 8.9 percent in the last three months.