Wall Street closed Tuesday in negative territory after Goldman Sachs' (GS) - Get Goldman Sachs Group Inc. (The) Report first-quarter earnings came up short and Johnson & Johnson's (JNJ) - Get Johnson & Johnson Report revenue missed forecasts.
The S&P 500 fell 0.36%, the Dow Jones Industrial Average dropped 0.61%, and the Nasdaq fell 0.26%.
The financial and health care sectors dragged markets lower.
Goldman Sachs reported first-quarter profit and revenue that came in below Wall Street's expectations. The stock declined more than 5%, the drag taking more than 60 points off the Dow. A decline in stock trading revenue hurt the bank as it reported earnings of $5.15 a share on revenue of $8.03 billion. Analysts expected the company to report earnings of $5.31 a share on revenue of $8.45 billion.
Bank of America's (BAC) - Get Bank of America Corporation Reportfirst-quarter profit topped analysts' forecasts. The bank's shares fell 0.42% after the bank posted earnings of 41 cents a share, beating estimates of 35 cents. Revenue of $22.25 billion topped analysts' estimates of $21.61 billion and was higher than a year earlier. Results at the bank were buoyed by rising interest rates.
J&J shares fell 3.3% after the company reported earnings of $1.83 a share, beating Wall Street estimates, but revenue of $17.77 billion came in below expectations.
"We do think the trend is upwards for the markets for the year," Lisa Kopp, senior vice president, U.S. Bank Wealth traditional investments group, said in a phone interview. "We would expect some volatility on the way to that upward finish line."
Kopp added that equity valuations have been slightly elevated since the election of Donald Trump.
"It's really natural to have a little bit of a volatility period after that kind of enthusiastic market," she said. "Overall we are still positive on equities, but we do think that there's going to be fits and starts. Some of this action you are seeing (Tuesday) is really just part of a natural pullback in that context."
U.S. housing starts in March fell 6.8% to a seasonally adjusted annual rate of 1.22 million, which came in below FactSet estimates of 1.246 million. Housing permits rose 3.6% to a 1.26 million rate.
Industrial production increased 0.5% in March, matching estimates. The increase from 0.1% in February was mostly due to an 8.6% rise in output of utilities as the weather adjusted to more normal, colder temperatures, the Federal Reserve said.
Stocks in London fell 2.5% Tuesday after U.K. Prime Minister Theresa May called for an early general election in order establish a solid mandate for the country's exit from the European Union.
West Texas Intermediate crude settled down 0.5% to $52.41 a barrel.
Netflix (NFLX) - Get Netflix Inc. Report shares fell 3.1% after the streaming company reported earnings of 40 cents a share, beating estimates. Revenue of $2.64 billion matched analysts' forecasts. About 1.4 million U.S. subscribers and 3.5 million international subscribers were added in the first quarter, bringing Netflix's total bases to 50.9 million and 47.9 million, respectively. Analysts expected 1.5 million U.S. additions and 3.7 million international streaming adds. For the second quarter, Netflix forecast it would add 600,000 U.S. subscribers in the second quarter and 2.6 million international subscribers, topping forecasts.
Shares of United Continental (UAL) - Get United Airlines Holdings Inc. Report dropped 4% on Tuesday after the airline reported first-quarter earnings of 41 cents a share, beating estimates of 38 cents, while revenue of $8.4 billion matched expectations. The company said first-quarter earnings fell about 70% from a year earlier.
In United's earnings release, CEO Oscar Munoz continued to apologize for an incident more than a week ago when a passenger was forcibly dragged off a United flight. "It is obvious from recent experiences that we need to do a much better job serving our customers," Munoz said.
UnitedHealth Group (UNH) - Get UnitedHealth Group Incorporated (DE) Report shares rose almost 1% after the health insurer reported first-quarter revenue of $48.7 billion and adjusted earnings of $2.37 a share. It also raised its annual revenue outlook to $200 billion.
Harley-Davidson (HOG) - Get Harley-Davidson Inc. Report reported first-quarter earnings Tuesday of $1.05 a share, surpassing Wall Street forecasts of $1.02. Revenue came in at $1.33 billion, slightly missing analysts' projections of $1.35 billion. Shares fell 4.3% as Harley-Davidson only reaffirmed its shipment guidance for the year of flat to down modestly.
GNC (GNC) - Get GNC Holdings, Inc. Class A Report shares jumped more than 28.8% after the company reported earnings of 35 cents a share, beating FactSet estimates of 35 cents. Revenue of $644.8 million also came in above expectations.
Shares of Cabela's (CAB) climbed 7.2% after Capital One Financial (COF) - Get Capital One Financial Corporation Report said it would purchase the company's credit card portfolio. Synovus Financial (SNV) - Get Synovus Financial Corp. Report said it will buy Cabela's banking assets, thus allowing the company to move forward with its purchase of Bass Pro Shops.
Cardinal Health (CAH) - Get Cardinal Health Inc. Report shares dropped 11.6% after announcing it plans to purchase Medtronic's Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency businesses in a $6.1 billion cash deal.
Wall Street continued to monitor tensions between the U.S. and North Korea. U.S. Vice President Mike Pence assured Japanese Prime Minister Shinzo Abe on Tuesday that the U.S. stands "100%" behind its anchor ally in Asia in working to defuse risks from North Korea's nuclear program, the Associated Press reported.