U.S. stocks moved higher on Tuesday as strength in bank and industrials stocks outweighed the travel names held back by COVID fears.
The Dow Jones Industrials surged 174.9 points to 35,013.06, after briefly falling more than 100 points earlier in the session.
The Dow was boosted by stocks tied to the economic recovery, including banks, Caterpillar and 3M.
However, shares of companies that would be hit hardest by new health restrictions, including airlines and cruise lines, fell on Tuesday morning, limiting upside for the market.
The S&P 500 gained 22.31 points to 4,409.47,
The NASDAQ rebounded 42.84 points to 14,723.89.
Meanwhile, the second-quarter earnings season continues with Under Armour shares rose nearly 7% after the company beat estimates on the top and bottom lines. However, Clorox’s stock fell 10% after a disappointing report.
Shares of Simon Property jumped more than 2% after the mall owner said sales bounced back to pre-pandemic levels, up 80% from a year ago. It also reported a relatively high occupancy rate.
Through Friday, 88% of S&P 500 companies had reported a positive earnings surprise for the second quarter, which will mark the highest percentage since FactSet began tracking this metric in 2008.
The spread of the delta coronavirus variant continued to keep investors on edge. The seven-day average of daily coronavirus cases in the U.S. reached 72,790 on Friday, surpassing the peak seen last summer when the nation didn’t have an authorized Covid-19 vaccine, according to data compiled by the Centers for Disease Control and Prevention.
Investors are closely monitoring progress in Washington as lawmakers move toward a bipartisan infrastructure bill that would devote $550 billion to U.S. infrastructure. Senate Majority Leader Chuck Schumer aims to rush the 2,702-page legislation through the chamber before a planned monthlong recess starting Aug. 9.
Prices for 10-Year Treasurys eked higher, thus lowering yields to 1.17% from Monday’s 1.18%. Treasury prices and yields move in opposite directions.
Oil prices subtracted 58 cents to $70.68 U.S. a barrel.
Gold prices docked $10.20 to $1,812.00 U.S. an ounce.