The actions of the USA UU They advanced higher on Tuesday, initially boosted by financial results after higher than expected earnings from Bank of America. Johnson and Johnson also won in the top and bottom line, but their actions shot up but closing session highs. Chip sectors continue to reach new highs after news that Apple and Qualcomm settled their royalty dispute. The SMH Semiconductor ETF increased more than 2%. The sectors were mixed led by an increase in finance. Health and public services opposed the trend. The three main averages were established in the black, with the Nasdaq outperforming. Energy stocks were positive led by a rebound in oil prices. 1.2%
Bank of American Beat on the bottom line
Bank of America Corp.'s first-quarter earnings led to a solid performance in its consumer business. Earnings increased to $ 7.31 billion, compared to $ 6.92 billion the previous year. Earnings per share were $ 0.70 compared to expectations that the second largest bank in the US. UU It would earn $ 0.66 per share. The first quarter revenue was $ 23 billion, year after year. The driver of solid returns was the consumer banking business, which increased by 25% due to higher interest rates and loan growth. Earnings increased 14% in its wealth management unit, which added new clients in the quarter.
Apple and Qualcomm resolved their dispute
Apple and Qualcomm announced that they had resolved their royalty dispute. The agreement includes an Apple payment to Qualcomm, as well as a chipset supply agreement, which suggests that Apple will buy the Qualcomm chips for future iPhones. Qualcomm shares rose more than 20% after the news was released, which increased its market capitalization by around $ 14.5 billion. The company announced it expects incremental earnings per share of $ 2. The two companies started proceedings in a federal court hearing in San Diego on Monday, which is expected to last until May.
The FDA ordered Boston Scientific to stop selling surgical mesh
The Food and Drug Administration ordered Boston Scientific and Coloplast to stop selling the surgical mesh used for some pelvic operations. The agency said the companies did not reasonably show that their products were safe. The companies have 10 days to present their plans to withdraw the products from the market. The shares of Boston Scientific and Coloplast fell by around 4%.
Netflix falls in the earnings release
Netflix reported financial results after the closing bell. The company reported earnings of 0.76 per share at 4.528 billion dollars in revenue. The company outperformed the top line, but declined with a softer orientation than expected. Netflix forecasts 5 million new subscribers in the second quarter compared to expectations of 5.5 million. The company also reported a guide to lower-than-expected earnings in the second quarter. On the other hand, IBM reported earnings that were better than expected, but lost in the top line. IBM reported earnings of $ 2.25 per share compared to expectations of $ 2.22 per share. The income was 18.18 billion compared to the expectations of 18.40 billion. The share fell 3% in the secondary market.