Big Profits Can't Push Stocks Higher Today

Earnings season is in high gear, but generally solid earnings reports haven't given investors enough reason to bid stocks up today. The Dow Jones Industrial Average (DJINDICES: ^DJI  ) has fallen 0.3% late in trading, and the S&P 500 (SNPINDEX: ^GSPC  ) is down 0.48%.

The biggest loser on the Dow today is Coca-Cola (NYSE: KO  ) , which has dropped 2.1% after reporting a 4% decline in earnings to $2.68 billion, or $0.59 per share. Adjusted earnings of $0.63 per share met estimates, but investors were surprised to see that revenue fell 2.6%, and there's growing concern that the soft-drink business is in a long-term decline. 

Dow component Johnson & Johnson (NYSE: JNJ  ) reported results that were well ahead of estimates, but the stock is flat as I write. The company said adjusted earnings rose 14% to $1.48, which was $0.09 ahead of estimates, while revenue rose 8.5% to $17.88 billion. Medical companies have struggled against the cost pressures on the industry, so it was especially encouraging that Johnson & Johnson's pharmaceutical business saw 12% growth to lead the company. The medical industry is volatile right now, but Johnson & Johnson is big and diverse enough to navigate these waters, just as it did during the second quarter.  

Finally, more financial earnings are pouring in, and it was a blockbuster quarter for the industry. Goldman Sachs (NYSE: GS  ) said net income doubled to $1.93 billion on the back of strong trading and investment-banking activities. But shares have fallen 1.7% today because investors are concerned that huge trading gains won't come easily as the Federal Reserve slows down its bond-buying program. Revenue from fixed income, currency, and commodity trading fell from $3.22 billion in the first quarter to $2.82 billion last quarter, and we could see that slowdown continue as rates rise. All in all, it was still a great quarter, investors aren't gobbling it up today.  

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