FOX Business’ Stuart Varney says American companies like Amazon, Apple, Microsoft, Google and Tesla are helping lead recent market rallies.
U.S. equity markets slipped Tuesday as investors assessed the first round of bank earnings as well as the impact of California backtracking on its reopening from COVID-19 lockdowns.
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The S&P 500 and the Nasdaq Composite dropped 0.47 percent and 0.7 percent, respectively, while the Dow Jones Industrial Average swung between losses and gains. The major averages were hammered by a sharp selloff on Monday afternoon following California’s decision to shut bars and indoor dining back down amid a surge in new COVID-19 infections.
Looking at stocks, JPMorgan Chase & Co.’s second-quarter profit was cut in half from a year ago, but the lender reported better-than-expected earnings amid double-digit growth in stock and bond trading as COVID-19 whipped up market volatility.
Citigroup Inc. also outpaced estimates as strong trading results more than offset weakness in the consumer banking business.
Wells Fargo & Co. lost $2.4 billion and said it would cut its quarterly dividend to 10 cents per share, down from 51 cents.
Elsewhere on the earnings front, Delta Air Lines Inc. recorded $3.2 billion in charges related to the COVID-19 pandemic as traffic slid 85 percent.
Meanwhile, aerospace giant Boeing Co. was awarded a $22.8 billion contract to manufacture F-15EX advanced fighter jets.
Defense contractor Lockheed Martin Corp. faces Chinese sanctions after the U.S. approved the sale of $620 million of missile parts to Taiwan.
Tesla shares were given a $2,322 price target — a Wall Street high — at Piper Sandler, which cited recent share gains and an improving margin outlook due to its software.
On the economic data front, the consumer price index rose 0.6 percent month-over-month in June, slightly ahead of the 0.5 percent gain that was expected. Meanwhile core prices, which exclude food and energy, jumped 0.2 percent from the previous month, above the 0.1 percent increase that analysts were anticipating.
Looking at commodities, West Texas Intermediate crude oil fell 28 cents to $39.82 a barrel while gold dropped $15.20 to $1798.90 an ounce.
U.S. Treasurys ticked higher, pushing the yield on the 10-year note down by 1 basis point to 0.63 percent.
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European markets were under pressure, with France’s CAC down 1.65 percent, Germany’s DAX off 1.43 percent and Britain’s FTSE slipping 0.24 percent.
Markets were lower across the board in Asia as Hong Kong’s Hang Seng lost 1.14 percent, Japan’s Nikkei slid 0.87 percent and China’s Shanghai Composite slid 0.83 percent.
