Stocks rose Tuesday — with the Dow Jones Industrial Average hitting a 2019 high in mid-session — as financial shares paced gainers, but concerns that possible changes to Medicare may hit private health care insurers trimmed early session advances.
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Johnson & Johnson shares gained on improved guidance for the year, but UnitedHealth, the nation’s largest insurer, fell after its CEO expressed concern that the Medicare for All bill proposed by House Democrats posed a threat to the industry.
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Johnson & Johnson, which makes Tylenol, said its first-quarter profit was down 14 percent but it beat profit and revenue expectations.
Meanwhile, profits rose by double-digits percentage points at Bank of America. in the first quarter of 2019, the firm said on Tuesday, underscored by a bustling consumer banking operation amid what its top executive called solid U.S. economic growth. However, shares fell after the bank reported that revenue in the three months through March was $23 billion, slightly less than analyst estimates.
Shares of chipmaker Qualcomm rocketed more than 20 percent higher after it settled a years-long royalty payment dispute with Apple. The global patent license agreement and chipset supply agreement, reached shortly after the two tech giants began facing off in a California courtroom, ended years of litigation between the two companies.
The settlement obliges Apple, which has accused Qualcomm of forcing customers to pay twice to gain access to its chips, to pay Qualcomm an as-yet undisclosed amount.
A Federal Aviation Administration review panel on Tuesday certified the safety of the training for Boeing’s new software update for the 737 Max jet fleet, sending shares of the Chicago-based aerospace giant higher.
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