Johnson & Johnson raised its full-year sales and earnings outlook after revenue rose 5.6% in the first quarter, lifted by demand for everything from Tylenol and Imodium to the company’s pharmaceutical products. The New Brunswick, N.J., healthcare-products company also said Tuesday that first-quarter earnings were wiped out by a $6.9 billion charge tied to litigation and other costs from its Covid-19 vaccine commitments. Costs tied to the separation of its consumer-health business also weighed on results. Stripping out those charges, adjusted earnings came to $2.68 a share, topping the $2.50 a share expected by Wall Street analysts. Sales rose to $24.75 billion in the first quarter, above the $23.60 billion expected by analysts, according to FactSet. J&J, whose financial results are considered a bellwether for many health sectors, also raised its full-year guidance, saying it expects sales to rise about 6% to between $97.9 billion and $98.9 billion. In January, the company guided for sales to rise about 5% to between $96.9 billion and $97.9 billion in 2023. The company raised its full-year outlook for adjusted earnings to a range of $10.60 a share to $10.70 a share, up from $10.45 a share to $10.65 a share.

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The Switzerland stock market ended on a firm note on Tuesday after staying positive right through the day's session, amid optimism about earnings. The benchmark SMI ended with a gain of 47.22 points or 0.42% at 11,358.98, after moving in a tight range between 11,320.82 and 11,392.73. Swiss Re and Sika surged 3.7% and 3.57%, respectively. Sonova climbed 2.86%. Richemont and Geberit gained 1.67% and 1.61%, respectively. Swiss Life Holding, Credit Suisse, Partners Group and Alcon gained 0.98% to 1.2%. Lonza Group, Roche Holding and Novartis lost 0.4 to 0.6%. In the Mid Price Index, Julius Baer, AMS and Temenos Group gained 2 to 2.5%. Straumann Holding, Belimo Holding, Swatch Group and VAT Group ended higher by 1.2 to 1.8%. Adecco tumbled more than 6%. Swiss Prime Site and PSP Swiss Property ended lower by 1.26% and 1.06%, respectively.

European stocks closed higher on Tuesday with upbeat economic data from China, some stronger-than-expected earnings updates from U.S. companies, and a couple of acquisition news help underpinning sentiment. Markets shrugged off data showing a drop in the ZEW economic sentiment index in the Euro area as well as Germany in the month of April. The pan European Stoxx 600 gained 0.38%. Germany's DAX climbed 0.59%, France's CAC 40 surged 0.47%, hitting a record high, and the U.K.'s FTSE 100 ended 0.38% up, while Switzerland's SMI gained 0.42%. Among other markets in Europe, Austria, Greece, Iceland, Ireland, Netherlands, Poland, Russia, Spain and Sweden ended higher. Belgium, Denmark, Finland and Turkey closed weak, while Czech Republic, Norway and Portugal ended flat. In the UK market, Entain soared 7.3% after reporting higher gaming revenues. Anglo American, Rolls-Royce Holdings, Fresenillo, Flutter Entertainment, Prudential, Johnson Matthey, Endeavour Mining and M&G gained 2 to 3.3%. Admiral Group, AstraZeneca, Antofagasta, Ocado Group, Beazley, IHG, Standard Chartered and Legal & General also posted strong gains. Unite Group, GSK, Airtel Africa, B&M European Value Retail, Centrica, British Land and Compass Group lost 1 to 2.2%.

The Dow industrials rode out Tuesday's batch of corporate earnings to finish near-flat despite pressure from shares of Goldman Sachs Group and Johnson & Johnson. The blue-chip Dow Jones Industrial Average fell 10.6 points, or less than 0.1%, to 33976.63. The S&P 500 advanced 3.6 points, or 0.1%, to 4154.87. The Nasdaq Composite slipped 4.3 points, or less than 0.1%, to 12153.41, posting an eight loss in 11 trading days. Earnings continue to put banks' efforts to weather recent industry strains and tightening from the Federal Reserve on display. Goldman Sachs stock slipped $5.77, or 1.7%, to $333.91 after a slowdown in deal making and a loss on its Marcus loan book hit profits and revenues. Shares of Bank of America rose $0.20, or 0.6%, to $30.56, and Bank of New York Mellon added $0.66, or 1.5%, to $44.89. Both lenders reported rising revenues. Despite a improved outlook for the rest of the year and earnings that beat analysts' expectations, shares of healthcare-products giant Johnson & Johnson shed $4.66, or 2.8%, to $161.01. Growth stocks, which offer the promise of windfall profits far in the future, benefit from low interest rates. Despite the Fed's record pace of tightening, investors haven't given up on such companies. Supply-chain snarls are still hindering efforts by weapons makers to produce more arms for Ukraine and refill stocks for the U.S. and its allies. Lockheed Martin Corp. said Tuesday that sales of its long-range missiles known as the Guided Multiple Launch Rocket System, or GMLRS, fell in the latest quarter from a year ago.

At midweek, no consistent trend can be discerned on the stock exchanges in East Asia and Australia. However, the price fluctuations are usually quite small. Traders speak of uncertainty about the course of the just starting balance sheet season and the future course of the US Federal Reserve. And even the surprisingly strong Chinese gross domestic product (GDP) reported on Tuesday was not convincing in all respects at second glance. This is because the manufacturing sector is still lagging behind, even after the pandemic-related restrictions in China were lifted.

The yield on the U.S. benchmark 10-year Treasury note fell to 3.571%, from 3.590% at Monday's close.

UBS raises the National Grid target to 1,120 (1,050) p – Neutral

JPM lowers the Delivery Hero target to EUR63 (65)/Overw. – Trader

Dt. Bank raises the Hugo Boss target to EUR 70 (68) – Hold

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