Austin American-Statesman

Dow crosses 23,000 for first time, ends slightly lower

- By Alex Veiga

Gains by health care companies led U.S. stock indexes mostly higher Tuesday, pushing the market further into record territory.

The Dow Jones industrial average briefly climbed above the 23,000 mark for the first time, settling just below the milestone. Slight gains nudged the Dow and Standard & Poor’s 500 indexes to new highs for the second straight day this week.

Health care companies posted some of the biggest gains following strong earnings from UnitedHeal­th Group and Johnson & Johnson. News of a plan backed by the White House that would extend federal payments to health insurers also gave the sector a boost. Banks and other financial stocks declined the most. Packaged food and beverage companies were also big laggards.

Trading was mostly listless as investors sized up the latest company earnings news and looked ahead to a full slate of corporate report cards later this week.

“Expectatio­ns of ongoing earnings growth are reasonably strong, but there may be a bit of a wait-and-see at this point in time given the run in the equity markets,” said Jason Pride, director of investment strategy at Glenmede.

The S&P 500 index added 1.72 points, or 0.1 percent, to 2,559.36. The Dow picked up 40.48 points, or 0.2 percent, to 22,997.44. The Nasdaq composite slipped 0.35 points, or 0.01 percent, to 6,623.66. The Russell 2000 index of smaller-company stocks fell 5.18 points, or 0.3 percent, to 1,497.50.

More stocks fell than rose on the New York Stock Exchange.

The major stock indexes drifted between small gains and losses for much of the day.

Health insurers, hospitals and other health care companies also rose as two leading lawmakers reached a deal on a plan that would extend federal payments to health insurers that President Donald Trump had blocked last week. Trump said Tuesday afternoon that the White House has been involved in the plan, which he called a “short-term deal.” Biogen gained $8.799, or 2.6 percent, to $344.47, while Anthem added $3.50, or 1.9 percent, to $187.26.

Morgan Stanley posted quarterly results above Wall Street’s expectatio­ns. Its shares rose 18 cents, or 0.4 percent, to $49.12.

Traders took a dimmer view of Goldman Sachs’ results. The bank also posted results that beat financial analysts’ estimates, but its trading desks, which are weighted toward bonds, currencies and commoditie­s, struggled during the quarter. Goldman slid $6.32, or 2.6 percent, to $239.09.

Netflix fell 1.6 percent after the streaming video company said its debt and programmin­g costs continue to rise as it gained subscriber­s last quarter. Its shares lost $3.20 to $199.48.

While only a few companies have reported results so far, earnings are mostly looking good, noted Erik Davidson, chief investment officer for Wells Fargo Private Bank.

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