Investing.com -- U.S. stocks closed slightly lower on Tuesday as a dip in Health Care and biotechnology stocks partially offset steady gains by several prominent companies resulting from strong third quarter results over the previous three months.
The Dow Jones Industrial Average ticked down during a relatively flat session, while the NASDAQ Composite index and S&P 500 Composite index inched lower on a choppy day of trading. The Dow lost 13.43 or 0.08% to 17,217.11 in spite of strong performances from United Technologies Corporation (N:UTX) and Verizon Communications Inc (N:VZ), while the NASDAQ fell 24.50 or 0.50% to close Tuesday's session at 4,880.97.
The S&P 500, meanwhile, dropped 2.89 or 0.14% to 2,030.77, even as six of its 10 sectors closed in the green. Stocks in the Telecommunications, Industrials and Financials industries led, while stocks in the Health Care and Technology industries lagged. Health Care stocks fell by more than 1.5% on the session.
Shares in United Technologies (N:UTX) rose sharply on Tuesday after one of the nation's largest defense contractors reported net income of $1.4 billion or earnings per share of 1.67 during its third quarter, considerably higher than analysts' forecasts of 1.55 per share. The Farmington, Conn. based multinational conglomerate also said Tuesday that it expects to complete the divestiture of its Sikorsky helicopter arm at some point in the fourth quarter of this year. United Technologies, however, missed analysts' revenue expectations by approximately $1 billion, amid a stronger dollar and delays in engine deliveries at its Pratt & Whitney division. Verizon shares also rose by more than 1.2% to 45.24, after the largest wireless provider in the U.S. reported stronger than expected revenues and earnings last quarter.
United Technologies, the top performer on the Dow, surged 3.57 or 3.88% on Tuesday to close at 95.62. Shares in United Technologies are still down by approximately 6% over the last year. The worst performer was IBM (N:IBM), which fell 8.58 or 5.75% to 140.64, one day after reporting a larger than expected decline in quarterly earnings. At one point in Tuesday's session, IBM shares slumped to a fresh five-year low.
The biggest gainer on the NASDAQ was Monster Beverage 1990 Corp (O:MNST), after an analyst from Evercore said McDonald`s Corporation (N:MCD) is testing the energy beverage at some of its restaurants nationwide. Shares in Monster Beverage (O:MNST) soared 6.91 or 5.21% to 139.61. The worst performer was Micron Technology Inc (O:MU), which plummeted 2.07 or 10.80% to 17.09. Shares in Micron Technologies are down by more than 35% over the last year.
The top performer on the S&P 500 was Dover Corporation (N:DOV), which jumped 3.78 or 6.55% to 61.49, after the Chicago-based industrial equipment manufacturer beat analysts' expectations with its quarterly earnings. The worst performer was Harley-Davidson Inc (N:HOG), as the motorcycle manufacturer slashed its full-year shipment forecasts on Tuesday, following weaker than expected earnings. Shares in Harley-Davidson plummeted 7.80 or 13.92% to 48.25, at one point dropping to its lowest level in two years.
A slew of health care and pharmaceutical stocks finished among the worst performers on the S&P 500 including: Vertex Pharmaceuticals Inc (O:VRTX), Varian Medical Systems Inc (N:VAR), Allergan (N:AGN_pa) and Eli Lilly and Company (N:LLY). Health care stocks have fallen precipitously over the last month since U.S. presidential candidate Hillary Clinton warned in late-September that she will crack down on price gouging in the pharmaceutical industry, amid escalating prices for prescription drugs.
On the New York Stock Exchange, advancing issues outnumbered declining ones by a 1,889 to 1,205 margin.