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US stocks rise as consumer data offsets climbing coronavirus cases

Carmen Reinicke   

US stocks rise as consumer data offsets climbing coronavirus cases
Stock Market2 min read
  • US stocks rose on Tuesday as investors weighed climbing coronavirus cases with positive economic data.
  • Coronavirus cases continue to climb in multiple US states, leading to new restrictions and rollbacks of reopening phases.
  • US consumer confidence jumped in June the most since 2011, exceeding economist expectations.
  • Federal Reserve Chairman Jerome Powell and Treasury Secretary Steve Mnuchin are set to testify before the House Financial Services Committee at 12:30 p.m.
  • Read more on Business Insider.

US stocks rose on Tuesday as positive economic data offset increasing coronavirus cases in some states.

All three major US indexes pared earlier losses when US consumer confidence jumped in June, according to a Tuesday report from The Conference Board. The organization's consumer confidence index surged to 98.1 from 85.9 in May, the biggest jump since 2011.

Still, states such as Texas, California, Florida, and Arizona have rolled back reopening plans and imposed new restrictions as local COVID-19 cases have spiked. On Monday, New Jersey delayed allowing indoor dining in its phased reopening, and New York said it would also consider postponing the phase.

Here's where US indexes stood at 12:30 p.m. ET on Tuesday:

Read more: Goldman Sachs has formulated a strategy that could triple the market's return within a year as volatility remains higher than normal — including 11 new stock picks for the months ahead

Shares of Uber rose on reports that it was considering purchasing Postmates for about $2.6 billion. Tesla surged more than 7% after CEO Elon Musk sent an email to employees Monday night saying "breaking even is looking super tight" for the second quarter.

Wells Fargo declined after saying it would likely slash its dividend in the third quarter to comply with the Federal Reserve's stress test. Bank of America, Citigroup, Goldman Sachs, and JPMorgan said their dividends would remain the same.

Shares of Boeing slumped after Norwegian Air Shuttle canceled a deal for its jets. Inovio Pharmaceuticals slipped more than 12% following a report that the company hasn't provided data needed to determine if its coronavirus vaccine is working.

Federal Reserve Chairman Jerome Powell and Treasury Secretary Steve Mnuchin are set to testify before the House Financial Services Committee at 12:30 p.m. In prepared remarks released on Monday ahead of the event, Powell warned that failing to contain the virus could be a problem for the economy going forward.

Read more: BANK OF AMERICA: Buy these 8 retail stocks as they rake in revenues from an unprecedented surge in home-improvement spending

In global news, Chinese President Xi Jinping signed a national-security law for Hong Kong that's set to go into effect on Tuesday. The law could spark tensions between the US and China and threaten Hong Kong's standing as a financial hub.

Still, China's economy has shown signs of a rebound from the coronavirus pandemic. The country's purchasing managers' index climbed to a three-month high in June, surpassing economists' estimates.

Oil prices slid. West Texas Intermediate crude as much as 2.1%, to $38.85 per barrel. Brent crude, oil's international benchmark, fell 1.9%, to $40.90 per barrel, at intraday lows.

Read more: Real-estate investor Joe Fairless breaks down how he went from 4 single-family rentals to overseeing 7,000 units worth $900 million — and outlines the epiphany that turbocharged his career

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