- US stocks rose on Tuesday as investors weighed second-quarter earnings results for US banks against spiking coronavirus cases.
- JPMorgan gained after earnings beat Wall Street expectations. Wells Fargo slumped after reporting a loss and cutting its dividend.
- Coronavirus cases continue to climb in the US, forcing states to rollback reopening plans and threatening the economic recovery from the pandemic recession.
- Read more on Business Insider.
US stocks rose on Tuesday as investors weighed second-quarter earnings results for US banks against spiking coronavirus cases.
Shares of JPMorgan rose after the firm beat estimates for revenue and profit, powered by a surge in investment banking. Citigroup fell despite beating earnings forecasts. Wells Fargo slumped after reporting a $US2.4 billion loss in the quarter and announced it will slash its dividend to 10 cents.
Delta traded lower after it reported a $US5.7 billion net loss in the second quarter, its largest since the Great Recession.
Here’s where US indexes stood at the 4 p.m. ET market close on Tuesday:
- S&P 500:3,197.53, up 1.3%
- Dow Jones industrial average: 26,642.59, up 2.1% (557 points)
- Nasdaq composite:10,488.58, up 0.9%
The gains come after a wild trading session on Monday, when a mid-day rally was reversed after California rolled back part of its reopening plan. More than one third of US states reported record high new daily COVID-19 cases on Monday, while the US seven-day average of new cases surpassed 60,000 for the first time.
Surging coronavirus cases and halted or pulled back reopening plans threaten the US economic recovery from the pandemic recession. Data from the UK show that its economic rebound isn’t going as well as hoped, challenging the prospect of a V-shaped recovery. US consumer prices rose faster than expected in June, but inflation still sits near multiyear lows.
Oil rose ahead of a key meeting between OPEC and its allies scheduled for Wednesday, and amid a report from the group saying that demand for the commodity will rebound sharply in 2021.West Texas Intermediate crude gained as much as 1.2%, to $US40.57 per barrel. Brent crude, the international benchmark, rose 1.2%, to $US43.22, at intraday highs.
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