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S&P 500 Ends at Record as Earnings Outweigh Worry About COVID, China Clampdown

Stocks end higher as earnings reports outweigh jitters about the spread of COVID-19's delta variant and China's clampdown on its gaming and technology sectors.

Stocks finished higher Tuesday as earnings reports outweighed jitters about the spread of COVID-19's delta variant and China's clampdown on its gaming and technology sectors.

The S&P 500 finished up 0.82% to close at a record 4,423. The Dow Jones Industrial Average climbed 278 points, or 0.8%, to 35,116, while the Nasdaq gained 0.55%.

The yield on the benchmark 10-year Treasury rose Tuesday to 1.176%, but had declined to as low as 1.15%.

Stocks on Monday ended mostly to the downside, giving up gains on worries the spread of COVID 19's delta variant could stall the economic recovery.

“It is clear that COVID delta variant risks have not been put to bed,” said Mizuho Bank in a report. 

Even with the Centers for Disease Control and Prevention reporting that 165 million Americans have been fully vaccinated - and that President Joe Biden's target of having 70% of the adult population at least partly vaccinated has been met - the delta variant has increased the nation's infection rate to the highest in more than a year. There were 86,000 new cases reported on Monday.

In San Francisco, all individuals, whether vaccinated or not, will be required to wear masks in indoor spaces. New York City will require proof of vaccination for indoor dining and gyms, the mayor announced.

China, meanwhile, has been confronting its broadest coronavirus outbreak since the virus emerged in late 2019, according to Bloomberg.

Investors will be looking to U.S. jobs data on Friday for signs of a continued rebound in the employment sector. The ISM Manufacturing survey slowed for a second consecutive month in July largely as a result of supply-chain constraints.

Market on Eggshells, Masking Up, ISM, Pfizer and Moderna Just Getting Started

In China, state media criticized the “spiritual opium” of games, leading Tencent Holdings to consider a ban for kids, Bloomberg reported.

Under Armour  (UAA) - Get Free Report shares finished up 7.5% on Tuesday. The sports apparel company posted stronger-than-expected second-quarter earnings and boosted its 2021 sales forecast as shoppers returned to brick-and-mortar stores with pandemic restrictions being lifted across the world. 

Eli Lilly  (LLY) - Get Free Report posted weaker-than-expected second-quarter earnings and trimmed its full-year profit guidance but noted a solid gain in sales of its blockbuster diabetes treatment. The stock added 3.8%.