* BofA, Goldman Sachs slip after quarterly results
* Harley-Davidson falls after cutting shipments forecast
* Netflix jumps on robust subscriber growth
* Indexes down: Dow 0.29 pct, S&P 0.23 pct, Nasdaq 0.26 pct
(Updates to open)
By Tanya Agrawal
July 18 (Reuters) – U.S. stocks opened lower on Tuesday,
weighed down by earnings reports from some big names and
concerns over President Donald Trump’s ability to push through
his pro-growth policies, following a setback to the healthcare
Shares of Bank of America slipped 0.8 percent, while
Goldman Sachs was down 0.9 percent after reporting
Last week, shares of JPMorgan, Wells Fargo
and Citigroup had taken a beating after their quarterly
results and forecasts failed to excite investors.
Harley-Davidson slumped 9.6 percent after the
motorcycle maker cut its 2017 shipments forecast.
The healthcare sector will be under scrutiny after the
Republican healthcare bill to replace Obamacare sank in the
Senate, with news that two Republican senators would not support
the latest version of the bill.
The healthcare bill failure spelled uncertainty for
President Donald Trump’s agenda of tax reform and an
infrastructure overhaul, leaving the president without any major
legislative accomplishments six months into his tenure.
News on the healthcare bill sent the U.S. dollar to a
10-month low against a basket of major currencies.
“Investor sentiment is pessimistic this morning,” said Naeem
Aslam, chief market analyst at Think Markets UK.
“The fiasco of the healthcare bill means that the tax
reforms or the so called infrastructure spending plan are in
UnitedHealth Group fell 0.2 percent, while Johnson
and Johnson fell 0.4 percent.
At 9:34 a.m. ET (1334 GMT), the Dow Jones Industrial Average
was down 61.69 points, or 0.29 percent, at 21,568.03, the
S&P 500 was down 5.71 points, or 0.23 percent, at
The Nasdaq Composite was down 16.48 points, or 0.26
percent, at 6,297.95.
Eight of the 11 major S&P 500 sectors were lower, with the
healthcare index’s 0.50 percent fall leading the
As the earnings season gets under way, the market will be
keeping a close eye on corporate results to see if the high
valuations are justified in the face of mixed economic data,
tepid inflation and policy gridlock in Washington.
Analysts’ are estimating an 8.2 percent rise in
second-quarter earnings for the S&P 500 companies from a year
This follows a robust first quarter when U.S. companies
posted their best earnings since 2011, according to Thomson
IBM, United Continental Holdings, CSX
and Navient are among the companies scheduled
to report results after the bell.
Netflix jumped 8.8 percent after the
streaming-television pioneer’s added more subscribers than
expected in the second quarter.
Declining issues outnumbered advancers on the NYSE by 1,552
to 899. On the Nasdaq, 1,596 issues fell and 631 advanced.
(Reporting by Tanya Agrawal; Editing by Arun Koyyur)