Dow pulls out 150-point gain as Big Tech leaders drag Nasdaq down; European markets close higher after EU leaders reach recovery fund deal; BELEX15 up 0.78%; Fiscal Council sees 3% GDP drop in 2020, with 7% of GDP government deficit
The Dow Jones Industrial Average and S&P 500 closed higher on Tuesday as traders booked profits from the major tech names and added to positions in the more beaten-down value stocks. The 30-stock Dow gained 159.53 points, or 0.6%, to close at 26,840.40. The S&P 500 climbed 0.2% to 3,257.30. Both the Dow and S&P 500 cut their gains in the final 30 minutes of trading. The Nasdaq Composite, meanwhile, dropped 0.8% to 10,680.36 after hitting an intraday record earlier in the day.
IBM reported better-than-expected second-quarter earnings. Notably, IBM improved gross margins in three of its five units in the past quarter. The Dow component rose as much as 4.6% before closing 0.3% lower. 
Coca-Cola — another Dow component — said its profit fell 33% in the second quarter, but the company expressed optimism on demand as lockdown measures associated with the coronavirus were lifted. Shares rose 2.3%.

European stocks advanced on Tuesday after European Union leaders reached a deal on a 750 billion euro ($862 billion) recovery fund to help the region recover from the coronavirus crisis.
The pan-European Stoxx 600 closed 0.3% higher provisionally, paring back gains somewhat from earlier in the session. Most sectors and major bourses were in positive territory by the market close.
Major corporate earnings came thick and fast Tuesday morning, with UBS announcing a net profit of $1.23 billion for the second quarter of 2020, down 11% from the same period last year ($1.4 billion). Analysts polled by the Swiss lender had expected a net profit of $973 million.
Swiss drugmaker Novartis cut its 2020 sales outlook after reporting a fall in second-quarter profit and sales, with net income dropping 4% to $1.9 billion from $2.1 billion during the same period in 2019.
Swedish automaker Volvo swung to a first-half operating loss but said it expects businesses to recover as countries emerge from lockdown measures, having seen a strong rebound in China since the economy reopened.

Serbian BELEX15 was up 0.78% as Komercijana advanced 4.5%, while Belgrade Airport added 1.3%. The most active stock was NIS, with RSD 1.4m in volume. All other names were far less traded. We still do not have any earnings announcements.
The Fiscal Council believes that, in the upcoming period, the state should focus on reducing the deficit in 2021 to around 2% of the GDP, to the end of recovering fiscal stability, disrupted, as they say, by the COVID-19 health crisis. Furthermore, the Fiscal Council recommends an increase in state spending on infrastructure, as well as a control of the growth of pensions and salaries in the public sector in 2021. The Fiscal Council believes that a full freezing of the salaries would be justified as well. According to the council's estimate, Serbia's GDP will drop by 3% in the current year, the budget deficit will be 7% of the GDP, and the public debt at the end of the year would be at slightly over 60% of the GDP, all due to the negative effects of the coronavirus crisis.
Source: CNBC, Ilirika