US Markets

Wall Street ends higher, led by energy and materials

Credit: REUTERS/Lucas Jackson

Wall Street ended higher on Tuesday, led by a surge in the Dow Jones Industrial Average, as investors bought energy and materials stocks and looked beyond a recent surge in coronavirus cases.

By Noel Randewich

July 14 (Reuters) - Wall Street ended higher on Tuesday, led by a surge in the Dow Jones Industrial Average, as investors bought energy and materials stocks and looked beyond a recent surge in coronavirus cases.

The S&P 500 energy .SPNY, materials .SPLRCM industrial .SPLRCI, health .SPXHC and consumer staples .SPLRCS indexes all jumped.

Limiting gains in the Nasdaq and S&P 500, Amazon AMZN.O lost ground, extending a rotation that began Monday out of many big-name technology and momentum stocks that have led much of the U.S. stock market's rebound since March.

"Today is counterintuitive. We are reading about California's economy shutting down and a record spike in cases in Florida, and yet you have energy stocks leading," said Bob Shea, chief executive officer at TrimTabs Asset Management in New York. "We're seeing a mini-rotation into value."

JPMorgan Chase & Co JPM.N, the largest U.S. lender, rose after it posted a smaller-than-expected 51% drop in second-quarter profit.

Wells Fargo & Co WFC.Ntumbled after booking a quarterly loss for the first time since the 2008 financial crisis. Citigroup Inc C.N dropped 3.6% as it reported a steep fall in quarterly profit.

The S&P 500 banks index .SPXBKdropped as the three banks set aside a combined $28 billion to cover potential losses on loans to borrowers hurt by the coronavirus pandemic.

Wall Street has reclaimed most of its coronavirus-driven losses since March as a raft of monetary and fiscal stimulus and upbeat economic data raised hopes of a swift post-pandemic recovery.

But a recent record surge in COVID-19 cases and new business restrictions, particularly in California, has again raised uncertainty about how it may take for the economy to recover.

Alabama, Florida and North Carolina reported record daily increases in COVID-19 deaths on Tuesday.

Investors are bracing for what could be the sharpest drop in quarterly earnings for S&P 500 firms since the 2008 financial crisis, according to Refinitiv IBES data.

Unofficially, the Dow Jones Industrial Average .DJI rose 557.51 points, or 2.14%, to 26,643.31, the S&P 500 .SPX gained 42.37 points, or 1.34%, to 3,197.59 and the Nasdaq Composite .IXIC added 97.73 points, or 0.94%, to 10,488.58.

Delta Air Lines Inc DAL.Ndropped after it warned it will be more than two years before the industry sees a sustainable recovery from the "staggering" impact of the coronavirus pandemic, with demand largely tracking the curve of infections in different places.

Moderna Inc MRNA.Ojumped after it said it plans to start a late-stage clinical trial for its COVID-19 vaccine candidate on or around July 27.

COVID-19's growing potential economic impacthttps://tmsnrt.rs/307zCt5

(Reporting by Medha Singh and Devik Jain in Bengaluru Editing by Marguerita Choy)

((noel.randewich@tr.com; (415) 677 2542; Reuters Messaging: Twitter: @randewich))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AMZN JPM WFC C SPX DAL MRNA

Latest Markets Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More