Dow climbs 300 points as investors look past turbulent oil to blue-chip earnings reports
- US stocks rose Tuesday, continuing gains from Monday, as investors looked past volatile oil prices to corporate earnings reports.
- Google parent company Alphabet will report Tuesday, as well as Ford and Starbucks.
- WTI crude oil tumbled as much as 21% before paring those losses to roughly 2%.
- Read more on Business Insider.
US stocks rose Tuesday, building on Monday's gains, as investors looked past volatile oil prices to corporate earnings reports. Alphabet, Ford, and Starbucks are among the companies set to report.
Investor optimism was also boosted by continued economic reopening efforts across the globe.
Here's where major US indexes stood shortly after the 9:30 a.m. ET market open on Tuesday:
- S&P 500: 2,912.77, up 1.2%
- Dow Jones industrial average: 24,435.31, up 1.3% (302 points)
- Nasdaq composite: 8,806.43, up 0.9%
Shares of Caterpillar rose slightly, even after the company withdrew its forecast for the rest of the year. HSBC slumped after announcing profits fell 51% in the quarter, due to the coronavirus pandemic.
Oil continued to slumped Tuesday, extending historic rout after the commodity fell into negative territory for the first time ever last week. Now, fears that storage may soon be exhausted are again weighing on prices. WTI crude futures slipped as much as 21%, to $10.07, before paring those losses. The commodity traded roughly 1.6% lower at 9:30 a.m. in New York.
"It looks like fear is kicking into investor sentiment following the insane shock just one week ago that eventually led to negative U.S oil prices and nobody wants to see the next contract expiry date follow the path of the May contract," Jameel Ahmad, global head of market research and currency strategy at FXTM, told Business Insider.
He continued: "As a result it appears that upcoming contracts are becoming very liquid, and investors can expect to see continued volatility."