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Dow climbs 320 points amid historic European stimulus package

Jul 21, 2020, 21:56 IST
Business Insider
Henry Nicholls/Reuters
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US stocks rose on Tuesday, as investors reacted to historic European economic stimulus.

The European Union on Tuesday agreed to a historic 750 billion euro ($860 billion) stimulus package to aid the region's economic recovery from the shock of the coronavirus pandemic. Stocks in Europe rose to a four-month high on the news.

Shares of technology companies slumped following Monday's gains, which sent the S&P 500 to its highest level since February and the Nasdaq to another record. Shares of Amazon erased gains from early Tuesday, falling more than 2% midday.

Here's where US indexes stood at 11:40 a.m. ET on Tuesday:

Read more: GOLDMAN SACHS: These 17 trades can help investors maximize their gains from the stocks most affected by the US elections in November

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Shares of IBM rose early in the session before paring some of its gains after the company reported earnings results on Monday that beat Wall Street's expectations for earnings per share, even though revenue fell on the year.

Coca-Cola gained after reporting profits that beat analysts' expectations. Lockheed Martin also climbed after reporting profits and sales that beat expectations and lifting its full-year outlook.

Oil prices rose, hitting the highest levels since March. West Texas Intermediate crude gained as much as 3.3%, to $42.16 per barrel. Brent crude, the international benchmark, rose 3.4%, to $44.75 per barrel, at intraday highs.

Read more: Morgan Stanley warns tech stocks are unusually vulnerable to earnings disasters over the next few weeks — and shares its strategy for profiting regardless of the outcomes

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