Stocks Inch Higher amid Earnings

U.S. stocks inched higher in the early trading on Tuesday as investors weighed a mixed bag of earnings. The Dow Jones Industrial Average lately added 28.65 points, or 0.17%, to 16,477.90. The S&P 500 was up 2.12 points, or 0.11%, at 1,874.01. The Nasdaq Composite gained
15.65 points, or 0.38%, at 4,137.19.

McDonald’s Corp. said its profit for the first three months of the year dropped 5.2% as the fast-food giant worked to revive its U.S. sales growth following a challenging 2013. Overall, McDonald’s reported a first-quarter profit of $1.2 billion, or $1.21 a share, down from $1.27 billion, or $1.26 a share, a year earlier. The company partly attributed the decline to the impact of prior-year income tax benefits. Total revenue for the quarter edged up 1.4% to $6.7 billion, though costs rose faster, at 2.3%.

Comcast, the nation’s largest cable company, said Tuesday its first quarter net income jumped 30% from a year ago to $1.87 billion as broadcasting the Winter Olympics generated more than $1 billion in revenue and customers continue to clamor for broadband Internet. The quarterly earnings per share of 71 cents beat analysts’ consensus estimate of 64 cents, as compiled by Thomson Reuters.

United Technologies Corp. (UTX) said net profit fell 4% to $1.2 billion, or $1.32 a share, in the first quarter, as restructuring costs shaved $0.09 off earnings. Sales rose 2% to $14.75 billion, as organic growth offset the impact of divestitures and exchange-rate fluctuations.

Valeant Pharmaceuticals International Inc. (VRX) offered to buy Allergan Inc. (AGN) in a cash-and-stock deal valued at $45.7 billion that will give the Canadian company the Botox wrinkle treatment.

Novartis and GlaxoSmithKline traded over $20 billion worth of assets on Tuesday, aiming to bolster their best businesses and exit weaker ones as the drugs industry reshapes to cope with healthcare spending cuts and generic competition.

U.S. retail sales fall in early April. National chain-store sales fell 0.5% during the first two weeks of April from the comparable period in March, according to Redbook Research’s latest indicator, released Tuesday.