Dow Ends Up Slightly; S&P 500 and Nasdaq Fall on Report China Tariffs to Remain Through Election

The Dow Jones Industrial Average ends slightly higher Tuesday but gives up most of its gains after a report that tariffs on billions of dollars of Chinese-made goods will remain in place until after the 2020 presidential election.
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  1. The Dow Jones Industrial Average ended slightly higher Tuesday but Trimmed gains on a report that said existing tariffs on billions of dollars of Chinese-made goods will remain in place until after the 2020 presidential election. The three major benchmark indexes set all-time intraday highs earlier in the session.
  2. JPMorgan Chase is Real Money's Stock of the Day. The bank posted stronger-than-expected fourth-quarter earnings, thanks in part to a surge in fixed income trading.
  3. Citigroup also benefited from an uptick in fixed-income trading, earning $1.90 a share in the fourth quarter and beating Wall Street forecasts.

The Dow Jones Industrial Average ended up slightly Tuesday after paring earlier gains on a report that tariffs on billions of dollars of Chinese-made goods will remain in place until after the 2020 presidential election. 

Bloomberg reported Tuesday that any moves to reduce the tariffs on Chinese goods coming in the U.S. will hinge on Beijing’s compliance with the terms of
a phase-one trade accord, which is expected to be signed Wednesday.

The Dow Jones Industrial Average ended up 32.62 points, or 0.11%, to 28,939.67, the S&P 500 slipped 0.15% and the Nasdaq fell 0.24%.

The three major benchmark indexes set all-time intraday highs earlier in the session.

JPMorgan Chase led the Dow higher after posting stronger-than-expected fourth-quarter earnings, thanks in part to a surge in fixed income trading, and said the U.S. consumer continues to be in a strong position heading into 2020.

Citigroup (C) - Get Report also benefited from an uptick in fixed-income trading, earning $1.90 a share in the fourth quarter, topping Wall Street forecasts by 9 cents.

Wells Fargo's (WFC) - Get Report fourth-quarter earnings missed forecasts, complicating the turnaround plans of new CEO Charles Scharf.

"We’re seeing a mixed bag of results from big banks to start earnings season with JPM and Citi coming in very strong but Wells missing expectations," said Mike Loewengart, vice president of investment strategy at E*Trade. " There is a lot to live up to this earnings season since Q3 was so robust. That said, growth expectations for the beginning of 2020 are tepid at best. Inflation has been climbing slowly but steadily since September, but really it’s not enough to force the (Federal Reserve's) hand for any action."

Delta Air Lines (DAL) - Get Report beat earnings forecasts in its fourth quarter and said it was continuing to take customers from rivals thanks to the grounding of Boeing's (BA) - Get Report 737 MAX aircraft.

Boeing, meanwhile, reported its final sales numbers for the year, showing that the plane maker delivered less than half the number of planes  in 2019 as it did in 2018 amid the ongoing fallout from the grounding of the 737 MAX.

Consumer prices in the U.S. in December rose 0.2%, less than economists' forecasts for an increase of 0.3%. The core Consumer Price Index, which excludes volatile food and energy costs, rose 0.1% and came in below forecasts of 0.2%.

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