Wall Street Close: Bulls clinch onto bullish territory by the tops of their hooves

Wall Street rose on Tuesday, but it was a volatile two-days and for one moment, it seemed as though the bull's had finally given up the ghost.

However, stocks on Tuesday rebounded led by gains in energy and materials, as investors looked beyond a recent surge in coronavirus cases.

Instead, earnings were the main focus with Amazon and other recent strong performers helping to push the bulls along out of the danger zones.

• S&P 500 Index bull-trap set-off, drops into the bear's lair as bank's earnings get underway

The S&P 500 posted five new 52-week highs and no new lows; the Nasdaq Composite recorded 26 new highs and 28 new lows.

The main focus was on the S&P 500 banks.

The iS&P 500 banks index lost 1.6% as the three banks set aside a combined $28 billion to cover potential losses on loans to borrowers hurt by the coronavirus pandemic.

JPMorgan Chase & Co, the largest US lender, gave some impressive results, albeit jarred by pessimism in the guidance. The stock rose 0.3% after it posted a smaller-than-expected 51% drop in second-quarter profit.

Wells Fargo & Co dropped a large 5.3% after booking a quarterly loss for the first time since the 2008 financial crisis. 

Citigroup Inc also fell 3.6% as it reported a steep fall in quarterly profit.

Despite some recent positive macroeconomic data and significant, decisive government action, we still face much uncertainty regarding the future path of the economy,”

Chase CEO Jamie Dimon said in a statement. 

However, we are prepared for all eventualities as our fortress balance sheet allows us to remain a port in the storm.

However, his guidance in the following statement is probably the most alarming for investors:

This is not a normal recession. The recessionary part of this you're going to see down the road... You will see the effect of this recession. You're just not going to see it right away because of all the stimulus.

Negotiations over Phase 4 of the US fiscal response are still ongoing

Meanwhile, analysts at ANZ Bank noted that the negotiations over Phase 4 of the US fiscal response are still ongoing.

Senate Democrats are pushing Fed Chair Powell and Treasury Secretary Mnuchin for more state aid, highlighting the need for a balanced recovery. Policymakers are looking to minimise fiscal tightening in late July and early August, provide support for furloughed workers, and support the broader economy through stimulus.

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