AIM IP specialist Tekcapital to sell or float all four portfolio companies 'within 2 years'. Watch the full video here

Less Ads, More Data, More Tools Register for FREE

US close: Stocks end session lower as Q3 earnings season begins

Tue, 13th Oct 2020 21:26

(Sharecast News) - US stocks closed lower on Tuesday as market participants digested some key corporate earnings and news of a pause in Johnson & Johnson's Covid-19 vaccine study.
At the close, the Dow Jones Industrial Average was down 0.55% at 28,679.81, while the S&P 500 was 0.63% weaker at 3,511.93 and the Nasdaq Composite saw out the session 0.10% softer at 11,863.90.

The Dow Jones closed 157.71 points lower on Tuesday, cutting into gains recorded in the previous session as stimulus talks remained in focus.

Tuesday's main focus was the beginning of third-quarter earnings season, with several major US banks being the first cabs off the rank.

Investment manager Blackrock saw assets under management hit a new record in the third quarter of the year as a broad stock market rally helped the firm top both revenue and profit guidance, while banking giant Citigroup posted its largest quarterly profit of the Covid-19 pandemic as trading bonds afforded the firm another windfall.

JPMorgan Chase also recorded a 4% jump in third-quarter income thanks to the continued rebound in global financial markets.

Going the other way, Delta Air Lines posted a $5.4bn quarterly loss as the Covid-19 pandemic continued to ravage the travel industry, leading the group to warn it could take more than two years to recover from the outbreak.

Elsewhere in the corporate space, Johnson & Johnson, which also posted earnings on Tuesday, revealed that it had paused its Covid-19 vaccine study after one of the trial's participants had come down with an "unexplained illness". The pharma giant did not make it immediately clear if the patient had been administered with a placebo or the experimental vaccine itself.

Amazon was in focus as its "Prime Day" event kicked off, while investors also had a keen eye trained on Apple after the tech behemoth announced the iPhone 12, its first 5G-enabled iPhone handset.

On the macro front, consumer price inflation rose as expected last month but was unchanged at the core level amid falling prices for apparel and transportation services. According to the Department of Labor, headline CPI advanced at a month-on-month clip of 0.2% in September, pushing the annual rate of increase from 1.3% in August to 1.4%, in line with expectations.

However, at the core level, which excludes food and energy prices, the year-on-year rate of change was steady at 1.7%, just shy of consensus estimates for a print of 1.8%.

More News

UK officials admit some markets to be subject to duties under post-Brexit deal terms - FT

May 9 (Reuters) - Companies in freeports in Britain will not get to enjoy the full benefits of the new tax-efficient zones if they are exporting to certain countries including Canada, Norway, Switzerland and Singapore, the Financial Times reported...

Today 23:09

WRAPUP 1-Soccer-Man Utd delay Man City's party, West Brom relegated

* Man Utd come from behind to beat Villa* Man City title celebrations delayed until at least Tuesday* Allardyce suffers first Premier League relegation as West Brom lose* Calvert-Lewin dents West Ham's Champions League hopesBy Martyn HermanMay 9 (Reu...

Today 22:57

England to ease COVID restrictions further on May 17

LONDON, May 9 (Reuters) - England will press ahead with plans to ease COVID-19 restrictions further on May 17, including allowing people to meet indoors, thanks to favourable data on infections and vaccines, the government said on Sunday.The count...

Today 22:30

Soccer-Premier League talking points

May 9 (Reuters) - Talking Points from the Premier League weekend:HAVE CHELSEA GAINED A PSYCHOLOGICAL EDGEChelsea's 2-1 victory over Manchester City made sure City's title celebrations remained on hold but perhaps more importantly sent out a message t...

Today 22:16

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.