The Dow Jones Industrial Average rose on Tuesday, led by shares of JPMorgan Chase after the banking giant reported stronger-than-forecasted quarterly results. However, the broader market struggled as losses among major tech stocks mounted, CNBC writes.
The 30-stock Dow gained 210 points, or 0.8%. The Dow hit its session high after Florida reported a 3.3% increase in coronavirus cases, which is below a seven-day average of 4.6%.
JPMorgan Chase rose more than 1% after posting earnings and revenue that beat analyst expectations. The bank’s strong results were driven in part by a 79% surge in trading revenues amid the market’s volatile swings in the second quarter. Strong trading revenues also led to better-than-expected results from Citigroup, but the stock dipped 1.8%.
“What’s so influential about the banks reporting early in the earnings season in times like these is we’re really counting on banks’ management team’s view on what’s going on,” Susan Schmidt, head of U.S. equities at Aviva Investors, told CNBC. “Banks are the foundation of our U.S. economy. They are there to provide loans to small businesses and to manage the retail consumers’ deposits.”
Chevron and Exxon Mobil contributed to the Dow’s gains, jumping more than 2% each. Boeing, McDonald’s and Caterpillar were all up at least 1.9% as well.
The S&P 500 was flat, however, while the Nasdaq Composite dropped 0.7% as Big Tech added to Monday’s declines.
Facebook, Apple, Amazon and Netflix slid at least 0.7% each. Alphabet and Microsoft fell 1.1% each. Those losses added to a broad decline for Big Tech that started on Monday and evaporated a massive rally for the broader market.
The Dow gave up a 500-point gain to end the day up 10 points on Monday. Meanwhile, the Nasdaq Composite rose nearly 2% to a record before ending Monday’s session down more than 2%. Bespoke Investment Group also pointed out Monday marked the third time since 1985 that the Nasdaq hit an intraday record before ending a session down more than 1%.