US stocks slide as stimulus stalemate continues
- US stocks slipped on Tuesday as a stalemate in fiscal stimulus negotiations continued.
- Initial results of the third-quarter earnings season kick off also failed to impress investors.
- JPMorgan and Citigroup reported quarterly results that beat expectations but were met with falling stock prices.
- A temporary pause in Johnson & Johnson's COVID-19 vaccine trial and Eli Lilly's COVID-19 antibody treatment trial spooked investors awaiting successful vaccines and therapeutics to help stifle the pandemic.
- Watch major indexes update live here.
US stocks slid on Tuesday as a stalemate in fiscal stimulus negotiations continued and third-quarter earnings season kicked off with reports from banks like JPMorgan and Citigroup.
Major indexes also faced pressure as Johnson & Johnson said it would pause its COVID-19 vaccine trial because of an unexpected illness in a participant.
On top of that, Eli Lilly said it would pause its trial of a COVID-19 antibody treatment over safety concerns. The announcements sent shares of both healthcare companies lower and dented near-term hopes for a vaccine or therapeutic.
JPMorgan reported better-than-expected earnings, helped partly by a surge in trading revenue that was buoyed by a rise in global stocks. Citigroup also benefited from a jump in trading revenue, helping it to report earnings that beat analysts' expectations.
Here's where US indexes stood at the 4 p.m. ET market close on Tuesday:
- S&P 500: 3,511.93, down 0.6%
- Dow Jones industrial average: 28,679.81, down 0.6% (158 points)
- Nasdaq composite: 11,863.90, down 0.1%
Aside from its vaccine hiccup, Johnson & Johnson also reported earnings that beat analysts' estimates and raised its fiscal 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 Plus service.
The IMF raised its global GDP outlook but said the stock market could face a sharp correction if the COVID-19 pandemic persists for longer than investors expect.
Despite the stalemate in fiscal negotiations, a breakthrough could be just around the corner after Mitch McConnell signaled support for passing a stimulus deal prior to the upcoming election.
Apple slid on Tuesday as it announced its new iPhone 12 lineup, representing the first major redesign to its flagship product in over 3 years.
Gold fell as much as 1.9%, to $1,886.54 per ounce.
Oil traded higher. West Texas Intermediate crude jumped as much as 2.8%, to $40.53 per barrel. Brent crude, oil's international benchmark, rose 2.3%, to $42.68 per barrel, at intraday highs.