* Goldman Sachs falls with earnings, caution ahead
* Johnson & Johnson tops Dow gainers after results
* Steel makers lead materials sector higher
* Dow up 0.5 pct, S&P up 0.6 pct, Nasdaq up 0.4 pct
* For up-to-the-minute market news see []
(Updates to close)
By Ryan Vlastelica
NEW YORK, April 19 (Reuters) - Encouraging results from
health care and materials companies lifted U.S. stocks on
Tuesday, but weak earnings from Goldman Sachs limited gains in
a market skeptical of the growth outlook.
Investors were reluctant to make big bets as the market
readied for a spate of high-profile earnings. Volume was
extremely low, with 6.56 billion shares traded on the New York
Stock Exchange, the American Stock Exchange and Nasdaq, below
last year's daily average of 8.47 billion.
Johnson & Johnson <JNJ.N> was one of the first major names
to rally following results this season, rising 3.7 percent to
$62.69 after it raised its profit outlook. The health care
giant was the Dow's top percentage gainer. For details, see
[]
Offsetting that was Goldman Sachs Group Inc <GS.N>, which
fell 1.2 percent to $151.89 after posting a steep profit drop
as trading revenue fell, the latest in a number of
underwhelming reports from banks. The investment bank also
warned that there were fewer opportunities to make money in
the current environment. []
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
To see a graphic on J&J results, see:
http://r.reuters.com/qex98r
To see a graphic on Goldman results, see:
http://r.reuters.com/quw98r
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
"Unless the performance of financials and tech stocks
improves, then I think the market could be in store for a
correction," said Marshall Front, chairman and chief
investment officer oft Front Barnett Associates in Chicago.
"These are important groups that point towards future economic
activity."
The S&P Financial Index<.GSPF> is down 3.8 percent from a
recent high reached on April 7, while the S&P Information
Technology Index <.GSPT> is down 2 percent over the same
period.
Materials were the S&P's top percentage gainers a day
after Steel Dynamics <STLD.O> forecast strong growth, lifting
other steelmakers. The stock rose 5.7 percent to $18.46 while
U.S. Steel Corp <X.N> climbed 4.5 percent to $52.74. The S&P
Materials Index <.GSPM> rose 1.8 percent. []
The Dow Jones industrial average <> gained 65.16
points, or 0.53 percent, to 12,266.75 at the close. The
Standard & Poor's 500 Index <.SPX> added 7.48 points, or 0.57
percent, to 1,312.62. The Nasdaq Composite Index <>
advanced 9.59 points, or 0.35 percent, to 2,744.97.
The market seemed to have moved past Monday's surprising
announcement that Standard & Poor's was revising its outlook
downward on the United States credit rating.
"People are acknowledging that it is still very unlikely
that there could be a downgrade of the U.S., but still there
are a lot of concerns about what could happen with all these
government debt problems," said Charles Bobrinskoy, vice
chairman of Ariel Investments LLC in Chicago, which oversees
about $5.5 billion.
Home builders' shares also rose after government data
showed U.S. housing starts and permits for future home
construction rose more than expected in March.
The Dow Jones U.S. home construction index <.DJUSHB> rose
2.2 percent. PulteGroup <PHM.N> rose 5.1 percent to $8.24 and
KB Home <KBH.N> added 3.2 percent to $11.66. []
Texas Instruments Inc <TXN.N> warned late Monday of
slower-than-usual quarterly sales growth, citing damage to its
factories in Japan after the huge earthquake there in March.
The chipmaker's stock fell 0.7 percent to $34.54.
[]
About two stocks rose for every one that fell on the New
York Stock Exchange, while on the Nasdaq, the number of
advancers only slightly exceeded the number of decliners.
(Reporting by Ryan Vlastelica; Editing by Jan Paschal)
