Dow rises for a third straight day, rallies more than 500 points as Caterpillar leads; European markets close lower as coronavirus spike weighs on sentiment; BT up 4%; BELEX15 up 1.5%, Annual inflation in June at 1.6%
Stocks rose on Tuesday as investors added exposure to some of the more cyclical names in the market while Big Tech underperformed. The Dow Jones Industrial Average closed 556.79 points higher, or 2.1%, at 26,642.59. It was the 30-stock average’s best day since June 29. The S&P 500 climbed 1.3% to 3,197.52 while the Nasdaq Composite was up nearly 1% at 10,488.58.
Caterpillar was the best-performing Dow stock, rising more than 4%. Exxon Mobil and Chevron were up more than 3% each as well. Boeing closed 2.5% higher. At the S&P 500 sector level, energy jumped 3.6% while materials and industrials each gained more than 2%.
JPMorgan Chase reported better-than-expected results for the second quarter on the back of a massive surge in trading revenue. Citigroup’s second-quarter earnings were also driven in part by a sharp uptick in trading revenue. JPMorgan shares closed 0.6% higher while Citigroup lost 3.9%.
Wells Fargo struggled, falling 4.6% after reporting a $2.4 billion loss and slashing its dividend to 10 cents per share from 51 cents per share.

European stocks closed lower on Tuesday as a spike in coronavirus cases started to weigh on global market sentiment. The pan-European Stoxx 600 closed down by 1% provisionally, with tech stocks shedding almost 2.8% to lead losses as most sectors and major bourses slipped into negative territory.
BT stock meanwhile was one of the top performers, climbing 4% after the U.K. announced plans to strip out Huawei from its 5G networks. The firm’s shares likely got a boost from the government’s commitment to a seven-year transition period for removing Huawei equipment, a move major telecom operators had been lobbying for.

BELEX15 was up 1.5%, as Belgrade Airport jumped 7.5%, while NIS added 0.37%. NIS was the most active name, with RSD 1.4m in volume, which is in absolute terms pretty low. Tehnogas was active with RSD 0.6m in volume, while its stock price was flat.
According to the data of the Statistical Office of the Republic of Serbia (SORS), y-o-y inflation in June was 1.6%, i.e. within the target tolerance band (3±1.5%), consistent with NBS expectations stated in the May Inflation Report.
At the monthly level, consumer prices edged up 0.6%, reflecting higher prices of fruit, vegetables and travel packages. Core inflation (CPI excluding the prices of food, energy, alcohol and cigarettes) stayed stable, amounting to 1.4% y-o-y.
Source: CNBC, Ilirika