Stocks Opened Flat despite Upbeat Bank Earnings

U.S. stocks opened flat on Tuesday as upbeat earnings from big investment banks Goldman Sachs and Morgan Stanley failed to fuel the optimism that has led the major indexes to record highs. The Dow Jones Industrial Average lately rose 8.87 points, or 0.04%, to 22,965.83. The S&P 500 lost 0.03 points, to 2,557.61. The Nasdaq Composite dropped 4.48 points, or 0.07%, to 6,619.52.

Oil prices continued to climb Tuesday amid fighting in Iraq that threatened production from northern Iraq and as the relationship between the United States and Iran risked more strain. November West Texas Intermediate crude was up 29 cents, or 0.6%, to $52.16 a barrel. Brent crude for December gained 28 cents, or 0.5%, to $58.09 a barrel.

Goldman Sachs Group Inc. reported earnings of $5.02 per share on $8.3 billion in revenue, compared to the consensus estimates of $4.17 per share in earnings on $7.5 billion in revenue. In last year’s third quarter, Goldman Sachs reported $4.88 per share in earnings on $7.9 billion in revenue.

Morgan Stanley said its third-quarter profit rose to $1.78 billion as the firm’s giant wealth-management business continues to churn out reliable profits. The firm reported earnings of 93 cents a share versus analyst expectations of 81 cents a share. Revenue of $9.2 billion was up from $8.91 billion a year ago and beat analyst expectations of $9.02 billion.

Johnson & Johnson (JNJ) beat third-quarter earnings expectations and raised its full-year outlook. Net income fell to $3.76 billion, or $1.37 a share, from $4.27 billion, or $1.53 a share, in the same period a year ago. Revenue rose to $19.65 billion from $17.82 billion.

U.S. factory production rose last month for the first time since June, a sign the industry is starting to regain its footing after the damage from hurricanes Harvey and Irma, Federal Reserve data showed Tuesday. Factory output increased 0.1% (est. 0.2% gain) after falling 0.2%.