Dow Ends Higher After EU Reaches Stimulus Pact - Nasdaq Drops

Stocks finish mixed as European leaders reach a coronavirus relief package. The tech-heavy Nasdaq Composite slows.
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Stocks finished mixed Tuesday after European leaders reached an agreement on a €1.8 trillion ($2.1 trillion) budget and coronavirus relief package.

The Nasdaq Composite wobbled throughout the day and finished lower.

The EU relief fund - which amounts to €750 billion ($857 billion) - will be sent as loans and grants to the hardest-hit countries in the euro bloc. 

The pandemic has killed more 135,000 people within the 27 countries that make up the European Union.

“Extraordinary events, and this is the pandemic that has reached us all, also require extraordinary new methods,” said German Chancellor Angela Merkel.

Congressional Democratic Party lawmakers, meanwhile, were meeting with aides of President Donald Trump Tuesday to hammer out details on a potential compromise on a fifth coronavirus aid bill.

However, House Minority Leader Kevin McCarthy of California told CNBC he doesn't see a bill getting passed by the end of July, instead saying "probably in the first week of August.”

"Because of the massive amount of stimulus thrown at financial markets by central banks and governments around the world, as well as record low cost of capital for publicly traded companies, we continue to believe the most likely scenario for markets is a melt up, with all-time highs being reached prior to the election," said Brett F. Ewing, chief market strategist at First Franklin Financial Services.

The Dow Jones Industrial Average finished up 159 points, or 0.6%, to 26,840, and the S&P 500 edged up 0.17%, with both indexes paring gains in the last half hour of trading. The Nasdaq Composite ended down 0.81% after setting an intraday record.

Amazon.com  (AMZN) - Get Report declined, ending down 1.8% to $3,138, after saying it would be postponing Prime Day, its biggest shopping event of the year.

International Business Machines  (IBM) - Get Report, a Dow component, posted earnings and sales that topped analysts' estimates, finishing off 0.3% to $126.06.

Coca-Cola  (KO) - Get Report, another stock in the blue-chip Dow, posted stronger-than-expected second-quarter earnings but saw a steep decline in revenue as stadiums, restaurants and movie theaters remained closed during the coronavirus pandemic. The stock finished 2.3% higher at $47.20.

Coca-Cola said the revenue decline was "primarily driven by pressure in away-from-home channels, which represent approximately half of the company’s revenues" and include clients such as sports stadiums and restaurants.