J&J, UnitedHealth Lifts Dow; Equities, Deals Supports Strong Profit at Goldman

Mukesh Buch
17 Oct, 2017
New York City

CSX benefited from higher freight rates. Comerica net soared on higher net interest income. Goldman Sachs bond trading revenues fell but benefitted from the healthy deals and equities markets. Omnicom beats revenue forecast. Grainger net plunged. J&J revenues soared. UnitedHealth profit surged 26%.

[R]10:45 AM New York – CSX benefited from higher freight rates. Comerica net soared on higher net interest income. Goldman Sachs bond trading revenues fell but benefitted from the healthy deals and equities markets. Omnicom beats revenue forecast. Grainger net plunged. J&J revenues soared. UnitedHealth profit surged 26%.[/R]

Tollbooth Index slid 0.52 to 12,845.77.

Earnings Review

CSX Corporation ((CSX)) increased 1.2% or 62 cents to $53.46 after the rail transportation services provider reported revenues in the third-quarter ending in September slid 1% from a year ago to $2.7 billion.

Net income in the quarter rose 1% to $459 million or 51 cents per diluted share from $455 million or 48 cents in the same quarter last year.

CSX said coal and consumer goods shipments and higher freight rates increased the revenues.

Comerica Inc ((CMA)) gained 45 cents to $75.73 after the financial services provider said net interest income in the in the third-quarter ending in September surged 21.3% from a year ago to $546 million.

Net income in the quarter soared 51.3% to $224 million or $1.26 per diluted share from $148 million or 84 cents in the same quarter last year.

The financial services provider said average total deposits in the quarter decreased $937 million to $56.5 billion and average total loans slumped $543 million to $48.7 billion.

Goldman Sachs Group Inc ((GS)) slumped 1.8% or $4.34 to $238.07 after the investment, banking and brokerage services provider reported revenues in the third-quarter ending in September increased 2% from a year ago to $8.3 billion.

Net income in the quarter dropped 3% to $2 billion or $5.02 per diluted share from $2.1 million or $4.88 in the same quarter last year.

As of September 30, Assets under supervision rose to $1.46 trillion.

Bond trading revenue declined 26% to $1.5 billion and equities trading revenue fell to $1.67 billion from $1.77 billion but investment banking revenue soared 17% to $1.8 billion and equities securities revenues surged 51% to $1.4 billion and investing and lending revenues surged 35% to $1.9 billion from a year ago.

W W Grainger Inc ((GWW)) surged 7.5% or $13.71 to $196 industrial equipment distributor said sales in the third-quarter ending in September increased 2% from a year ago to $2.6 billion.

Net income in the quarter plunged 13% to $162 million or $2.79 per diluted share from $185.9 million or $3.05 in the same quarter last year.

""Our U.S. business had strong volume in the quarter driven by our strategic pricing initiatives and an improving demand environment,” said chairman and chief executive officer DG Macpherson.

Johnson & Johnson ((JNJ)) jumped 2.4% or $3.32 to $139.34 after the healthcare products maker reported sales in the third-quarter ending in September soared 10.3% from a year ago to $19.7 billion.

Net income in the quarter declined 11.6% to $3.8 billion or $1.37 per diluted share from $4.3 billion or $1.53 in the same quarter last year.

The healthcare products maker lifted fiscal 2017 sales estimate in the range of $76.1 billion to $76.5 billion and diluted earnings per share between $7.25 and $7.30.

Omnicom Group Inc ((OMC)) advanced 2.8% or $2.10 to $76.11 after the advertising and marketing services provider said revenues in the third-quarter ending in September fell 1.9% from a year ago to $3.7 billion.

Net income in the quarter rose 3.9% to $263.6 million or $1.13 per diluted share from $253.8 million or $1.06 in the same quarter last year.

UnitedHealth Group Inc ((UNH)) jumped 5.5% or $10.59 to $203.76 after the healthcare services provider reported revenues in the third-quarter ending in September soared 9% from a year ago to $50.3 billion.

Net income in the quarter surged 26.4% to $2.5 billion or $2.51 per diluted share from $1.9 billion or $2.03 in the same quarter last year.

The healthcare services provider forecasted fiscal 2017 diluted earnings per share of about $9.45 and adjusted earnings per share of about $10.