Stocks Negative on Stimulus Suspense

Stocks were mixed on Tuesday as investors looked for updates on a stimulus package and digested the first batch of corporate earnings.

The Dow Jones Industrial Average faded 107.36 points over noon hour to 28,730.16.

The S&P 500 retreated 11.2 points to 3,523.10.

The NASDAQ gained 15.98 points to 11,892.24, as Facebook, Amazon, Netflix, Alphabet and Microsoft all rose.

Investors also weighed the possibility of a second coronavirus relief package from Washington. Over the weekend, the Trump administration called on Congress to pass a smaller $1.8-billion coronavirus relief bill as negotiations on a bigger package continue to run into roadblocks.

However, House Speaker Nancy Pelosi told fellow lawmakers in a letter that the White House proposal for new coronavirus aid has insufficient offers on health-care issues.

JPMorgan Chase reported better-than-expected results for the third quarter. Johnson & Johnson, another Dow component, posted earnings that beat analyst expectations and raised its full-year profit guidance. However, J&J shares were down 2% after the company paused its coronavirus vaccine trial after an “adverse event” was reported.

Asset-management giant BlackRock saw its shares gain 2.8% after the company reported earnings that beat analyst expectations.

BlackRock also said its assets under management grew to $7.81 trillion from $7.32 trillion in the previous quarter. Shares of Citigroup also rose after beating estimates for revenue and earnings.

Delta Air Lines, however, reported a wider-than-expected loss for the quarter and revenues down 75% compared with the same quarter last year. Shares fell 1.9%. Third-quarter results overall are expected to decline significantly; however, traders are hoping for surprise to the upside.

On Monday, investors rotated out of cyclicals and into technology names after little updates on a fiscal aid package were revealed. The Dow Jones Industrial Average climbed 250 points and the S&P 500 gained 1.64%, both helped by a 6.4% jump in Apple’s stock. With technology stocks leading the way, the Nasdaq Composite gained 2.56% on Monday, for its best day since September 9.

Apple’s long awaited iPhone launch, which was pushed to October due to Covid-19, occurs on Tuesday and the company is expected to launch its first ever 5G iPhone. It will be “the most significant iPhone event in years,” Morgan Stanley’s Katy Huberty told clients. The stock fell more than 1% on Tuesday.

Amazon’s Prime Day starts on Tuesday and the two-day event could mark the biggest online shopping day of the year, according to NPD, with 57% of consumers planning to do some if not all of their holiday shopping this week. Amazon shares dipped 0.2% Tuesday following a 4.8% pop on Monday.

Disney rallied more than 3% after announcing a major company reorganization with streaming at the forefront of its business. Disney said it centralizing its media businesses into a single organization that will be responsible for content distribution, ad sales and Disney+.

The U.S. Labor Department also released its consumer price index for September. The measure met expectations with an increase of 0.2%, though prices for used cars rising sharply.

Prices for the 10-Year Treasury gained sharply, lowering yields to 0.73% from Monday’s 0.77%. Treasury prices and yields move in opposite directions.

Oil prices were up 88 cents at $40.31 U.S. a barrel.

Gold prices slid $32.60 to $1,896.30 U.S. an ounce.

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