US stocks edge lower amid earnings reports and a new vaccine hiccup

Lucas Jackson/Reuters

  • US stocks slipped on Tuesday as the third-quarter earnings season officially kicked off.
  • JPMorgan and Citigroup reported quarterly results as investors watched for further signs of stimulus progress.
  • A temporary pause in Johnson & Johnson’s COVID-19 vaccine trial spooked investors as they eagerly await a successful vaccine or therapy to help stifle the pandemic.
  • Watch major indexes update live here.

US stocks slid on Tuesday as third-quarter earnings season officially kicked off with reports from banks like JPMorgan and Citigroup.

Major indexes also faced pressure as a temporary pause in Johnson & Johnson’s COVID-19 vaccine trial due to an unexpected illness in a participant sent shares lower and dented near-term hopes for a virus treatment.

JPMorgan reported better than expected third quarter earnings, in part helped by a surge in trading revenue that was buoyed by a rise in global stocks. Citigroup also benefited from a jump in trading revenue, which helped it report third quarter earnings that beat analyst expectations. 

Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Tuesday:

  • S&P 500: 3,525.94, down 0.2%
  • Dow Jones industrial average: 28,791.63, down 0.2% (46 points)
  • Nasdaq composite: 11,857.35, down 0.2%

Read more: MORGAN STANLEY: Buy these 44 cheap stocks poised to surge as the economy continues to recover and reopening expands.

Aside from its vaccine hiccup, Johnson & Johnson reported third quarter earnings that beat analyst estimates, and raised its fiscal year 2020 revenue and earnings guidance.

Shares of Disney climbed after it announced it would reorganize its media and entertainment business to focus on its streaming ambitions with its Disney+ service.

Gold fell as much as 1.5%, to $1,893.26 per ounce.

Oil traded higher. West Texas Intermediate crude jumped as much as 2.6%, to $40.44 per barrel. Brent crude, oil’s international benchmark, rose 2.3%, to $42.68 per barrel, at intraday highs.

Read more: Morgan Stanley lays out its 5 favorite trades for investors looking to dominate a looming V-shaped recovery, even if a stimulus deal takes until 2021

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