Stocks were little changed in early trading Tuesday as investors sized up corporate earnings and new government data showing that retail sales inched up last month. Earnings from JPMorgan Chase and Goldman Sachs trumped Wall Street’s expectations. Tobacco companies fell as investors got a look at the details of Reynolds American’s takeover of rival Lorillard.
KEEPING SCORE: The Standard & Poor’s 500 index fell a fraction of a point to 1,976 in the first 45 minutes of trading. The Dow Jones industrial average rose 16 points, or 0.1 percent, to 17,072. The Nasdaq composite fell 11 points, or 0.3 percent, to 4,428.
BANKS BEAT: Shares in JPMorgan Chase and Goldman Sachs surged after the investment banks reported better-than-expected financial results. JPMorgan, the nation’s largest bank by assets, said second-quarter earnings fell 9 percent as revenue at its investment banking and mortgage businesses dropped. The stock gained $1.95, or 3.5 percent, to $58.23. Goldman’s profit rose 5 percent, helped by record results from investment banking. Goldman gained $2, or 1.2 percent, to $169.
WHAT A DRAG: Cigarette maker Reynolds American said Tuesday it plans to buy rival Lorillard for about $25 billion in a deal to combine two of the nation’s oldest and biggest tobacco companies. Reynolds fell $2.47, or 3.9 percent, to $60.71, while Lorillard sank $5.11, or 7.6 percent, to $62.11. Other tobacco stocks also declined: Altria Group slipped 75 cents, or 1.7 percent, to $42.60, while Philip Morris International fell $1.18, or 1.4 percent, to $84.77.
SECTOR WATCH: Six of the 10 sectors in the S&P 500 rose, led by financials. Consumer staples lagged the most.