The major U.S. stock indexes inched up Tuesday morning as they looked to close out a strong second quarter.
The blue-chip Dow Jones Industrial Average fluctuated, while the S&P 500 rose 0.22 percent and the Nasdaq Composite added 0.34 percent.
The Dow and S&P 500 have gained 16.78 percent and 18.13 percent, respectively, during the three months through June and are on track to post their strongest quarters since the end of 1998. The Nasdaq, meanwhile, has rallied 28.23 percent and is set for its best quarter since the end of 2001.
Overnight, China passed national security legislation for Hong Kong, effectively ending the “One Party, Two Systems” governing principle that has been in place since the 1997 handover by Britain. The U.S. responded by revoking trade benefits that had been afforded to Hong Kong under the dual system.
In the U.S., new coronavirus cases continued to pull back from the peak reached last week, totaling 36,390 on Monday. Deaths due to the outbreak ticked up to 338, but remained near their lowest level since March 25.
Looking at stocks, Wells Fargo will cut its 51-cent quarterly dividend to help offset damage to the bank’s earnings from COVID-19. The bank will announce the amount of its payout when it releases earnings on July 14. Rivals JPMorgan Chase, Citigroup, Bank of America, Morgan Stanley and Goldman Sachs said they would maintain their dividends.
Royal Dutch Shell booked a $22 billion writedown due to declining demand for fuel as lockdowns to curb the spread of the pandemic choked off travel. The energy giant also lowered its oil price forecast to $35 a barrel for 2020 and $60 a barrel over the long term.
Athletic-apparel maker Lululemon has agreed to buy home fitness startup Mirror for $500 million. Mirror will operate as a standalone company within Lululemon after the completion of the deal, expected later this year.
Electric-vehicle producer Tesla is facing “tight” odds on breaking even in the second quarter due to the COVID-19 pandemic, according to the Associated Press, citing an e-mail CEO Elon Musk sent to employees. Musk asked employees to “go all out” to keep the company out of the red. Read more at FOX Business