Procter & Gamble, Boeing earnings disappoint
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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).
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"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)