US close: Stocks turn positive after earnings from big banks
By Josh White
Date: Tuesday 14 Jul 2020
(Sharecast News) - Wall Street stocks finished on a positive note on Tuesday, following key earnings reports from some of the country's biggest banks.
The Dow Jones Industrial Average ended the session up 2.13% at 26,642.59, the S&P 500 added 1.34% to 3,197.52, and the Nasdaq Composite was 0.94% firmer at 10,488.58.
It was a positive session throughout for the Dow, which had opened 198.83 points higher, after another record spike in new Covid-19 cases in Florida saw the blue-chip index record just a small gain during the previous session.
Tuesday's main focus was earnings from the major banks, with JPMorgan Chase reporting forecast-beating second-quarter numbers after heightened market volatility delivered record trading revenues and helped offset a weaker performance in retail banking.
Citigroup posted better-than-expected second-quarter earnings as a surge in trading revenues helped offset a slowdown in its banking unit.
Shares in JPMorgan finished up 0.57%, while Citigroup went the other direction, closing 3.93% below the waterline.
Wells Fargo was well into the red too, after the bank slashed its dividend as lower interest rates and soaring credit provisions prompted a slide into the red during the second quarter.
Although the Street expects to see corporate profits plunge 44% across the board in the second quarter, the financial sector was forecast to see a decline in profits of more than 52%.
Still on the earnings front, Delta Air Lines, which has been subject to an amount of volatility as a result of the Covid-19 pandemic, warned that bookings were declining as Covid-19 cases rose, forcing the airline to trim its schedule yet again.
Its shares descended 2.65% by the end of trading in New York.
Construction supplies distributor Fastenal, meanwhile, said it had seen sales and earnings growth throughout the quarter, as its stock rose 0.05%.
Also in focus were comments from Robert Kaplan, head of the Federal Reserve Bank of Dallas, who expressed concerns overnight in relation to the rising Covid-19 infection rate and stated the Fed may be required to do more should assistance be needed.
Rising tensions between the US and China in relation to Beijing's "unlawful" territorial claims in the South China Sea also weighed on sentiment, as did a rolling back of the reopening process in California.
In macro news, the cost of living in the US increased slightly more quickly than anticipated amid broad gains in prices by categories.
According to the Bureau of Labor Statistics, the headline consumer price index rose at a 0.6% month-on-month pace, pushing the year-on-year rate of growth from 0.1% for May to 0.6% in June.
Dow Jones - Risers
Caterpillar Inc. (CAT) $136.88 4.83%
Travelers Company Inc. (TRV) $118.55 3.77%
Chevron Corp. (CVX) $88.35 3.45%
Exxon Mobil Corp. (XOM) $44.07 3.31%
Home Depot Inc. (HD) $257.69 3.27%
McDonald's Corp. (MCD) $190.72 3.14%
Unitedhealth Group Inc. (UNH) $308.52 2.94%
Goldman Sachs Group Inc. (GS) $214.01 2.46%
Boeing Co. (BA) $179.96 2.45%
3M Co. (MMM) $158.54 2.42%
Dow Jones - Fallers
Dowdupont Inc. (DWDP) $30.52 0.00%
Pfizer Inc. (PFE) $35.23 0.06%
Nike Inc. (NKE) $96.76 0.31%
JP Morgan Chase & Co. (JPM) $98.21 0.57%
Microsoft Corp. (MSFT) $208.35 0.62%
Intel Corp. (INTC) $58.98 0.68%
Cisco Systems Inc. (CSCO) $46.26 0.72%
Procter & Gamble Co. (PG) $125.09 0.84%
Merck & Co. Inc. (MRK) $78.25 1.16%
International Business Machines Corporation (CDI) (IBM) $120.60 1.17%
S&P 500 - Risers
Align Technology Inc. (ALGN) $299.62 10.87%
Hanesbrands Inc. (HBI) $12.55 9.51%
Apache Corp. (APA) $13.51 7.91%
Edwards Lifesciences Corp. (EW) $71.22 6.00%
Lennar Corp. Class A (LEN) $66.29 5.96%
Diamondback Energy Inc. (FANG) $39.28 5.88%
Halliburton Co. (HAL) $12.48 5.85%
Schlumberger Ltd. (SLB) $18.39 5.81%
Helmerich & Payne Inc. (HP) $18.96 5.80%
Harley-Davidson Inc. (HOG) $27.36 5.56%
S&P 500 - Fallers
Ross Stores Inc. (ROST) $80.17 -5.48%
Wells Fargo & Co. (WFC) $24.25 -4.57%
Intuit Inc. (INTU) $285.37 -4.12%
Citigroup Inc. (C) $50.15 -3.93%
H&R Block Inc. (HRB) $13.61 -3.41%
M&T Bank Corp. (MTB) $98.33 -3.26%
Keycorp (KEY) $11.39 -3.15%
Mohawk Inds Inc. (MHK) $74.21 -3.12%
Comerica Inc. (CMA) $34.93 -2.97%
Fifth Third Bancorp (FITB) $18.15 -2.97%
Nasdaq 100 - Risers
Align Technology Inc. (ALGN) $299.62 10.87%
Regeneron Pharmaceuticals Inc. (REGN) $641.23 4.12%
Fiserv Inc. (FISV) $97.54 3.37%
Hologic Inc. (HOLX) $59.43 3.36%
Nvidia Corp. (NVDA) $415.08 3.23%
Henry Schein Inc. (HSIC) $59.69 3.18%
Vertex Pharmaceuticals Inc. (VRTX) $293.83 3.16%
Citrix Systems Inc. (CTXS) $153.67 3.08%
Vodafone Group Plc ADS (VOD) $15.92 2.98%
Take-Two Interactive Software Inc. (TTWO) $151.05 2.88%
Nasdaq 100 - Fallers
Ross Stores Inc. (ROST) $80.17 -5.48%
Intuit Inc. (INTU) $285.37 -4.12%
Trip.com Group Limited (TCOM) $26.10 -2.76%
Wynn Resorts Ltd. (WYNN) $79.30 -2.42%
Adobe Systems Inc. (ADBE) $433.78 -1.96%
Baidu Inc. (BIDU) $125.49 -1.84%
Mercadolibre Inc. (MELI) $972.63 -0.95%
Qurate Retail Inc. (QRTEA) $9.43 -0.74%
Amazon.Com Inc. (AMZN) $3,084.00 -0.64%
American Airlines Group (AAL) $11.57 -0.52%
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