0
0
0
Outstanding Service    Fair Treatment    Competitive Pricing  
Strong Capital Base      Rebate of Profits  
 

 
Printable Page Headline News   Return to Menu - Page 1 2 3 5 6 7 8 13
 
 
Wall Street Rebounds Tuesday           07/14 16:04

   Wall Street rebounded on Tuesday, and the S&P 500 more than made up all its 
losses from the day before, after stocks pinballed through another day of 
erratic trading.

   NEW YORK (AP) -- Wall Street rebounded on Tuesday, and the S&P 500 more than 
made up all its losses from the day before, after stocks pinballed through 
another day of erratic trading.

   The S&P 500 climbed 1.3%, led by energy producers and other companies whose 
profits would benefit greatly from a strengthening economy. It was a sharp 
turnaround from the morning, when the index was down 0.9%, and from Monday's 
last-hour slide after California shut bars and reinstated other restrictions 
amid a jump in coronavirus counts.

   The Dow Jones Industrial Average also erased an early loss to end the day at 
26,642.59, up 556.79 points, or 2.1%. Big tech-oriented stocks lagged behind, 
though, in a turnaround from their remarkably resilient run through the 
pandemic. That held the Nasdaq composite to a more modest gain of 97.73, or 
0.9%, to 10,488.58.

   The S&P 500 added 42.30 points to 3,197.52, and six out of seven stocks in 
the index were higher. The move left it 0.4% higher for the week after two 
yo-yo days.

   The market's latest unsettled moves came as earnings reporting season kicked 
off. Three of the nation's biggest banks painted a mixed picture of how badly 
the coronavirus pandemic is ripping through their businesses.

   "The earnings season is off to a very guarded start," said J.J. Kinahan, 
chief market strategist at TD Ameritrade.

   He pointed to cautious forecasts from companies that see the economy 
possibly taking a step back because of worsening COVID-19 trends, or at least 
taking longer to recover than expected.

   "The fact that they are prepared for bad scenarios is helping to give the 
market a little confidence," he said.

   Like the broader market, financial stocks drifted between gains and losses 
for much of the day before turning higher in the afternoon. JPMorgan Chase, 
Wells Fargo and Citigroup said they collectively set aside nearly $27 billion 
during the second quarter to cover loans potentially going bad due to the 
recession.

   But investors took very different approaches to each of them. JPMorgan Chase 
rose 0.6% after it said it made a record amount of revenue from April through 
June. Its profit for the latest quarter also beat analysts' forecasts, even 
though it roughly halved from a year ago.

   Wells Fargo, though, dropped 4.6% after it said it expects to cut its 
dividend. "Our view of the length and severity of the economic downturn has 
deteriorated considerably," CEO Charlie Scharf said.

   Citigroup fell 3.9% after CEO Michael Corbat said its overall business 
performance was strong last quarter, though net income dropped 73% from a year 
ago largely due to the $7.9 billion it set aside for loans potentially going 
bad.

   Delta Air Lines lost 2.6% after its earnings and revenue for the latest 
quarter fell short of Wall Street's already very low expectations. The pandemic 
is keeping fliers on the ground, and Delta's passenger count plunged 93% during 
the quarter from a year earlier. CEO Ed Bastian said it could be two years 
before the airline sees a sustainable recovery.

   Stocks have been mostly churning in place since early June. That's when the 
S&P 500 pulled back within 4.5% of its record high set in February, after 
earlier being down nearly 34%. The index is now 5.6% below its record.

   Pulling stocks higher has been a budding economic recovery, with the job 
market, retail sales and other measures of the economy halting their plunge and 
beginning to resume growth. Underlying it all is massive aid for the economy 
from central banks and governments around the world.

   But pushing stocks down are accelerating coronavirus counts in hot spots 
around the world, which threatens to halt the recovery just as it got going. 
California demonstrated on Monday how dangerous that can be when the governor 
of the country's largest state economy ordered indoor dining and other economic 
activity closed.

   The worry is that the continuing pandemic could push states across the Sun 
Belt to roll back reopenings of their economies.

   That's why COVID-19 trends --- along with the potential for more aid for the 
economy from Congress --- will matter much more for markets in upcoming weeks 
than what companies say about their second-quarter results, said Keith 
Buchanan, portfolio manager at Globalt Investments.

   "The progression of the virus should still be front and center for what is 
dictating and going to continue to dictate our prospects for economic growth 
going forward," he said.

   In Europe, France's CAC 40 fell 1%, and Germany's DAX lost 0.8%. The FTSE 
100 in London added 0.1%.

   In Asia, Japan's Nikkei 225 fell 0.9%, South Korea's Kospi slipped 0.1% and 
Hong Kong's Hang Seng dropped 1.1%.

   The yield on the 10-year Treasury held at 0.62% after rallying back from a 
morning dip to 0.60%. It tends to move with investors' expectations of the 
economy and inflation.

   Benchmark U.S. crude oil rose 19 cents to settle at $40.29 per barrel. Brent 
oil, the international standard, rose 18 cents to $42.90 a barrel.

 
Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN