Shrugging off positive trading sessions from their foreign counterparts, U.S. stocks pared early solid gains to finish mixed, as initial support from a rally in China on optimism of further stimulus measures from the government eroded. Pressure on energy stocks continued, as early gains in crude oil prices dissipated. Meanwhile, news on the equity front was mixed, with Morgan Stanley (MS) and Dow member UnitedHealth Group (UNH) both topping estimates, but Bank of America (BAC) and Tiffany & Co. (TIF) warned of future growth. Treasuries were nearly unchanged, the U.S. dollar was modestly higher, while gold was lower.

The Dow Jones Industrial Average (DIA) rose 28 points (0.2%) to 16,016, the S&P 500 Index (SPY) added a point (0.1%) to 1,881, while the Nasdaq Composite (QQQ) fell 11 points (0.3%) to 4,477. In heavy volume, 1.2 billion shares were traded on the NYSE and 2.4 billion shares changed hands on the Nasdaq. WTI crude oil fell $0.82 to $29.57 per barrel, but wholesale gasoline gained $0.01 to $1.03 per gallon, while the Bloomberg gold spot price declined $2.25 to $1,087.43 per ounce. Elsewhere, the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was 0.1% higher at 99.09. 

Bank of America Corp. (BAC $14) reported 4Q earnings-per-share (EPS) $0.28, one penny above the FactSet estimate, as revenues rose 4.3% year-over-year (y/y) to $19.5 billion, versus the expected $20.0 billion. The company saw solid growth in trading revenue, with fixed income coming in stronger than projected, while the company also saw lower expenses. Shares gave up early gains and were solidly lower as the company’s Chief Financial Officer warned on a call with analysts that revenue growth will be “challenging,” even as the economy improves, per Bloomberg. 

Morgan Stanley (MS $26) posted 4Q EPS ex-items of $0.43, north of the estimated $0.33, with revenues growing 4.3% y/y to $7.9 billion, compared to the forecasted $7.6 billion. Equity trading revenues topped expectations, while fixed-income trading fell more than projected. Shares of MS were slightly lower.  

Dow member UnitedHealth Group Inc. (UNH $113) announced 4Q profits ex-items of $1.40, exceeding the $1.25 that was expected, as revenues rose 30.5% y/y to $43.6 billion, topping the projected $43.2 billion. The company reaffirmed its full-year 2016 guidance. Shares were higher. 

Tiffany & Co. (TIF $64) reported a 5.0% y/y decline in same-store sales over the two-month holiday period that ended December 31, negatively impacted by the strong U.S. dollar and weak tourist spending in a number of markets. TIF lowered its 2015 guidance and warned that 2016 will likely see “minimal growth” due to the aforementioned challenges. Shares of TIF were decisively lower. 

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