The S&P 500 pulled back from record highs, while the Dow edged up for an eighth straight day of gains. Bobbi Rebell reports.
Microsoft results coming in better than forecasts after the close on Tuesday. Growth in the company's cloud business helped offset weakness in the PC market. Earnings were the big markets driver during Tuesday trading session. Netflix shares weighing on the tech sector after reporting disappointing subscriber growth on Monday. The Dow getting a lift and hitting another new record high after strong results from Johnson and Johnson. Wells Fargo Funds' John Manley: SOUNDBITE: JOHN MANLEY, CHIEF EQUITY STRATEGIST, WELLS FARGO FUNDS MANAGEMENT (ENGLISH) SAYING: "Well, I think, what we are going to see is more and more companies sort of give you the general picture of things. Are they beating numbers are they not beating numbers. And to me what is even more important is what kind of guidance are they giving you. My theory right or wrong is that things are starting to get a little better. The earnings are starting to lift off and stock prices will follow." Goldman Sachs' quarterly profit rose 74 percent, beating forecasts, but that didn't translate into a stock bump. Analysts say the results just weren't as impressive as those of the bank's peers. More lawsuits for Volkswagen. Three states, New York, Massachusetts, and Maryland, filed separate but nearly identical lawsuits accusing the world's number two automaker of violating environmental laws. VW has already admitted using secret software to cheat exhaust emissions tests. Twitter has signed a deal with the NBA to stream exclusive non-game programming. It's part of the social media company's deeper push into sports streaming to try to attract users. Europe a mixed picture for the major indexes on mostly weak earnings reports.