After weak reports from Johnson & Johnson and Goldman Sachs in first-quarter, while U.S stocks dipped, many investors are frustrated and health care companies lost the most.
Low results from the world’s biggest health care products organization have disappointed Wall Street as it had high hopes for company earnings. More to this, Johnson & Johnson had seen its huge loss for one-day in a year.
High earning in this month were expected from Goldman Sachs and Johnson & Johnson, but had rigorous effects on stocks.
In last few weeks, stocks have been lower and bond yields have dipped to five-month lows. Johnson & Johnson saw a loss 6% from its largest-selling drug, the Crohn’s disease treatment Remicade. Slow growth is seen for various consumer health products as the payers are also demanding more rebate on treatments for various diseases.
On other hand, the Goldman Sachs’s revenue fell short as their stocks gave up 4.7 percent, which was their biggest loss since June.
‘‘The reason it’s so important is that the stronger growth is likely to support higher stock prices even in the absence of pro-growth policies from the Trump administration,’’ Kate Warne, an investment strategist for Edward Jones, said.