After spending time in negative territory during Tuesday's session, stocks rose to their highest levels of the day in the final minutes of trading, before pulling back slightly at the closing bell. The Dow closed 557 points higher for a gain of 2.14%, while the S&P 500 and Nasdaq Composite rose 1.34% and 0.94%, respectively. Tech names clawed back earlier losses and Facebook, Alphabet, Microsoft and Apple all closed in the green. Industrial names also showed signs of strength, with Caterpillar jumping 5% to lead the Dow higher. - Pippa Stevens
Wells Fargo chief financial officer John Shrewsberry said on "Closing Bell" that the asset cap imposed on the bank by the Federal Reserve is potentially costing the firm billions in revenue and earnings. He said working to satisfy the central bank enough to have the cap lifted is "the most important work that we're doing."
"We've had to do a few things that have definitely cost us interest income at the margins to be able to navigate through that, and we'll continue to as long as the cap is in place," Shrewsberry said. "It's hard to put a number on it, but if our balance sheet as 10% bigger — call it $2.2 trillion versus of just under $2 trillion — there's a few billion dollars worth of revenue, most of which probably falls to the bottom line."
Shrewsberry also said that the credit lines that major companies drew down on at the beginning of the pandemic are "substantially all paid down now," crediting the improvement in the credit markets after support from the Federal Reserve.The bank's shares dropped 4.4% after it reported its second quarter results and dividend cut. — Jesse Pound
The Wilmington, North Carolina-based firm is a provider of cloud-based software for financial institutions. It counts more than 1,100 financial institutions as customers, according to a Securities and Exchange Commission filing.
And the work-from-home shift as a result of the coronavirus pandemic has been a boon for its business, nCino CEO Pierre Naude told CNBC.
"This whole new paradigm of working from home is allowing our banks to continue on without any interruptions, compared to banks not moved to the cloud, who really have to cycle people through offices," Naude said. "I'm not only bullish, I'm extremely optimistic. ... We address the four pillars that banks need: revenue increases, cost savings, efficiency as well as compliance. This is the trend of the future." - Kevin Stankiewicz
The major averages rose broadly as investors turned to the more cyclical parts of the market while taking profit from the big tech names. The Dow gained more than 400 points, or 1.7%. The S&P 500 climbed 0.9% and the Nasdaq Composite advanced 0.3%. Tuesday's performance comes in stark contrast to Monday's session, which featured a late-day sell-off. —Fred Imbert
The U.S. economy is showing signs of slowing down after a slight recovery, signaling the need for more monetary support, according to Federal Reserve Governor Lael Brainard. "Rolling flare-ups or a broad second wave of the virus may lead to widespread social distancing—whether mandatory or voluntary—which could weigh on the pace of the recovery and could even presage a second dip in activity," Brainard said in a speech. "Some high-frequency indicators tracked by Federal Reserve Board staff ... suggest that the strong pace of improvement in May and the first half of June may not be sustained." —Fred Imbert
President Donald Trump will hold a press conference at 5 p.m. ET on Tuesday in the Rose Garden. Bloomberg News reported the conference will be regarding China. — Maggie Fitzgerald
RBOB gasoline futures fell 1.6% Tuesday, on concern state efforts to halt the spread of the coronavirus by restricting activities will result in less driving and less demand for fuel. In particular, traders are watching Texas to see if Houston and the state more broadly locks down, after California closed indoor dining and other activities Monday.
"While we saw gasoline sales spike prior to the (July 4) holiday, now we're seeing the impact of states reversing course and closing their economies, which is resulting in a decline in demand again," said Andy Lipow, president of Lipow Oil Associates.
On Wednesday, the government will release the latest gasoline demand figures. For the week ended July 3, the U.S. consumed 8.8 million barrels a day, about 1 million less than the same time last year. – Patti Domm
The Dow traded more than 200 points higher, or 0.9%, as the market tried to recover from Monday's late-day swoon amid the start of the corporate earnings season. The S&P 500 gained 0.3%. The Nasdaq Composite, however, slid 0.3% as Big Tech continues to struggle. —Fred Imbert
Netflix — Alongside the rest of Big Tech, Netflix ticked 3% lower, dragged down by a downgrade to neutral from buy from UBS.
Ford — Shares jumped nearly 4% after Ford unveiled its new Bronco SUVs. The revived brand, positioned as a competitor to Fiat Chrysler's Jeep Wrangler, has a starting price just under $30,000.
Check out more midday movers here. —Maggie Fitzgerald
Biotech firm Moderna said Tuesday it will begin its phase 3 coronavirus vaccine trial on July 27. The trial will enroll 30,000 people that are at high infection risk. Shares of Moderna jumped nearly 4% following the news. — Yun Li
Citi initiated Teledoc and Livongo Health as buy on Tuesday, and analyst Daniel Grosslight wrote "we believe that a new era of healthcare technology investing has emerged, with a concatenate increase in innovation and disruption. Legacy technology underinvestment and pain points have boiled over (accelerated by COVID-19), and in our view, the healthcare ecosystem is on the verge of its 'Netflix moment.'" Both stocks are down almost 2% in early trading. — Michael Bloom
After a brief bounce in the opening minutes, tech stocks are once again heading south. Shares of Amazon dropped 2.7%, while Netflix lost 2.9%. Facebook and Microsoft both slid more than 1%. — Jesse Pound
CNBC's Jim Cramer urged investors to be cautious after yesterday afternoon's steep reversal, particularly in large tech stocks.
"You don't just snap out of that in one day. There are too many people who bought at the top who are trying to figure out, 'Lord get me back to even,'" Cramer said on "Squawk on the Street." "Let this play out."
The "Mad Money" host said it's not clear which theme of stocks will emerge as the predominant trade, underscoring the need for investors to be patient. "Will it be the companies that do better because people think a vaccine is upon us? I can't buy into that theory but that was the theory yesterday afternoon," he said. — Kevin Stankiewicz
Shares of Wells Fargo plunged as much as 8% minutes after the opening bell on Tuesday. The bank posted its first quarterly loss since the Great Recession as the bank set aside $8.4 billion in loan loss reserves tied to the coronavirus pandemic. The bank had a net loss of $2.4 billion in the second quarter, or a loss of 66 cents a share, worse than the 20 cents a share loss expected by analysts surveyed by Refinitiv. Meanwhile, Wells Fargo cut its quarterly dividend to 10 cents a share from 51 cents previously. – Yun Li, Hugh Son
The drastic intraday reversal in the Nasdaq Composite on Monday raised eyebrows on Wall Street. The tech-heavy benchmark went from rising nearly 2% to hit an all-time high to finishing the day more than 2% lower. Such a reversal (when the Nasdaq swings more than 2% while hitting a record) only happened two other times, going back to 1985, according to Bespoke Investment Group. Those two days were on Jan. 24 and March 7 of 2000, right before the burst of the tech bubble, the firm said. "Although the Nasdaq was up the following day both times, you don't need us to remind you what happened over the long-term from there," Bespoke said in a note Tuesday.
Many on Wall Street have sounded the alarms that the Nasdaq's comeback rally has gone too far, too fast. It was the first major U.S. equity benchmark to reclaim a new high after the coronavirus sell-off, soaring 15% this year. "Given the nonstop rally of late in the Nasdaq and earnings season on the horizon, Monday's reversal should at least serve as a reality check that the market isn't a one-way street," Bespoke said. –Yun Li
The Nasdaq opened in the red on Tuesday as major tech stocks including Apple and Microsoft fell. The index was down 0.7% after the opening bell, while the Dow and S&P 500 registered smaller losses. — Jesse Pound
Piper Sandler raised its target on Tesla to a new Street high of $2,322, implying a 55% rally ahead for shares of the electric vehicle maker. The new target firmly establishes Piper as the Street's biggest bull, prompting CEO Elon Musk himself to respond to the call. Tesla shares jumped more than 4% during premarket trading on Tuesday.
Pro subscribers can read more here. — Michael Bloom
Shares of Citigroup gained 1.8% in premarket trading after the bank reported a surge in trading revenues for the second quarter that helped it beat Wall Street expectations. The bank reported earnings of 50 cents per share on $19.77 billion of revenue. Analysts expected earnings of 28 cents per share and $19.12 billion of revenue, according to Refinitiv. — Jesse Pound, Fred Imbert
Shares of Wells Fargo dropped more than 2% in premarket trading after the bank announced that it was cutting its dividend to 10 cents per share and reported a $2.4 billion loss for the second quarter. This was the first quarterly loss since the financial crisis. Wells Fargo previously paid a quarterly dividend of 51 cents per share. — Jesse Pound, Hugh Son
Shares of Carnival dipped 1.5% in premarket trading on Tuesday, while Norwegian Cruise Line and Royal Caribbean slid about 1% each after SunTrust downgraded these cruise line operators due to expected delays in their restarting plans. The Wall Street firm slashed its ratings on Carnival to sell and Norwegian and Royal Caribbean to hold, saying cruising in any meaningful way in North America for the major brands will not resume until at least the second quarter of 2021. –Yun Li
Shares of JPMorgan rose 2.5% in premarket trading on Tuesday after the bank reported better-than-expected second-quarter earnings bolstered by a 79% surge in trading revenue. The bank posted earnings of $4.69 billion, or $1.38 a share, exceeding the $1.04 per share estimate of analysts surveyed by Refinitiv. Revenue of $33 billion exceeded the $30.3 billion estimate. Shares of Goldman Sachs, Morgan Stanley and Bank of America climbed at least 1% each in premarket following JPMorgan's strong trading results. — Yun Li, Hugh Son
The market is set to open Tuesday's session in the green as traders digest corporate earnings from big U.S. banks. Futures on the Dow Jones Industrial Average jumped about 140 points, indicating an opening gain of 150 points. S&P 500 and Nasdaq 100 futures rose 0.3% and 0.1%, respectively. The S&P 500 will attempt to erase 2020 losses on Tuesday after briefly turning green in Monday's roller-coaster session. The equity benchmark is now down 2.3% on the year after losing 0.9% in the previous session. A big rollover in technology shares took the market down on Monday. — Yun Li