Note: Our daily “S&P 500 Outlook, Forecast, and Trading plan for Wednesday, 04/17” will be posted around 8:30am EDT, Wednesday.

THE GIST (“THE WHAT”)

As first-quarter earnings continue to trickle in, better-than-expected results lifted the S&P 500 index higher at the open. Weakness in Real Estate and Health Care stocks amid rising risk-appetite, however, overshadowed gains in Financials sector. Struggling to maintain gains, the index closed relatively unchanged at 2907.06, up only 1.48 points over previous session’s close.

THE DETAILS (The “How & Why”):

Financials sector staged a strong rebound after leading the index lower in the previous session, up 1.37%. All the components within the sector traded higher for the day. Auto insurance provider Progressive Corp. led the broader sector higher, jumping 6.92% on posting impressive first-quarterly results and lifting other auto insurance stocks.  
Among other blue-chip banks reporting earnings today, Bank of America Corp. rebounded from early session losses on missing revenue estimates, closing 0.13% higher. Meanwhile, Blackrock Inc. rose 2.83% on beating earnings expectations, despite lower revenues.
Energy, Industrials, Technology, Consumer Discretionary and Materials sectors were all modestly higher in today’s choppy session. Qualcomm Inc. surged 23.21% to be the top gainer of the session following reports of the chip maker’s settlement with Apple Inc. over patent royalties. Western Digital Corp. rose 4.69%, further fueling the rally in semiconductors stocks on receiving stock upgrades by Deutsche Bank.
Among other major companies reporting their first quarter results, Johnson & Johnson and UnitedHealth Group Inc. beat earnings estimates. While Johnsons & Johnsons rose 1.49%, UnitedHealth Group tumbled 4.12%, weighing down heavily on broader Health Care sector after the country’s largest insurer warned of severe negative impacts from ‘Medicare for all’ policy that is being pushed by Democrats.
Defensive sectors overshadowed day’s strong gains, falling sharply amid rising risk appetite in the wake of strong earnings. Real Estate was the worst hurt by rising Treasury yields that edged higher alongside increasing risk appetite.  Health Care and Utilities were the other major drag on the broader index, closing lower by 2.03% and 1.39%, respectively.