Daily summary:

  • The Dow Jones (Symbol: DIA) and S&P 500 (Symbol: SPY) closed higher on Tuesday as traders booked profits from the major tech names and added to positions in the more beaten-down value stocks.
  • The 30-stock Dow gained 0.6%. The S&P 500 climbed 0.2%. Both the Dow and S&P 500 cut their gains in the final 30 minutes of trading. The Nasdaq (Symbol: QQQ), meanwhile, dropped 0.8% after hitting an intraday record earlier in the day.
  • Coca-Cola (Symbol: KO)— Coca-Cola gained 2.3% after the beverage giant gave an optimistic view about its future. The company said it expects demand to improve moving forward after states eased quarantine and lockdown measures. For the second quarter, however, Coca-Cola reported a 33% year-over-year drop.
  • IBM (Symbol: IBM) — IBM shares rose 1% but closed down 0.25% on the back of better-than-expected quarterly results. The company posted an adjusted profit of $2.18 per share on revenue of $18.12 billion. Analysts polled by Refinitiv expected earnings of $2.07 per share on overall sales of $17.72 billion. IBM also said gross margins for three of its five main units increased.
  • Devon Energy (Symbol: DVN) — Shares of the independent oil and natural gas company jumped 10.5% after Simmons Energy upgraded the stock to an overweight rating. A jump in oil prices that pushed West Texas Intermediate crude futures to the highest level since March also lifted other names in the sector. Occidental (Symbol: OXY), Apache (Symbol: APA) and Halliburton (Symbol: HAL) all gained more than 10%, while Exxon (Symbol: XOM) and Chevron (Symbol: CVX) each traded 6% higher.
  • Wells Fargo (Symbol: WFC) — Shares of the bank climbed 6.6% after it announced Mike Santomassimo would become chief financial officer, replacing the retiring John Shrewsberry. Santomassimo was previously CFO at Bank of New York Mellon.
  • Amazon (Symbol: AMZN) — Amazon stock fell 1.8% in midday trading after the e-commerce giant confirmed on Tuesday that it will delay its biggest shopping event of the year. In a statement, Amazon said it is delaying Prime Day while “ensuring the safety of employees and supporting its customers and selling products.” Amazon sent an email to its third-party sellers earlier in the summer to use the week of Oct. 5 as a “placeholder date” for coupons.
  • Tapestry (Symbol: TPR) — Shares of Tapestry jumped 4% after Jide Zeitlin resigned as the luxury retailer’s chairman and CEO after the company opened a probe into his personal behavior. Chief Financial Officer Joanne Crevoiserat, a former Abercrombie & Fitch executive, has been appointed as interim CEO of Tapestry. The company also said its fiscal fourth-quarter results have exceeded internal expectations with inventory levels falling from a year earlier.
  • Lockheed Martin (Symbol: LMT) — Shares of the industrial name gained 2.6% after the company earned $5.79 per share in the second quarter, which was 7 cents ahead of Street estimates compiled by Refinitiv. The company also beat revenue expectations, and raised its full-year forecast.
  • Philip Morris (Symbol: PM) — Shares of the tobacco company rose 4.2% after beating the top and bottom lines of its quarterly earnings. Philip Morris earned $1.29 per share on revenue of $6.65 billion. Wall Street was estimating earnings of $1.10 per share on revenue of $6.50 billion, according to Refinitiv.
  • Hibbett Sports (Symbol: HIBB) — Shares of the athletic apparel and footwear retailer soared 12.9% after the company said its second-quarter comparable sales were likely to be up by more than 70%.

Quarterly Earnings reports to look for:

  • Microsoft is expected to report earnings for Q4 2020 on Wednesday after Market close.
  • Tesla also is expected to report its earnings after Market close on Wednesday for Q2.