Stocks held in nicely by midday Tuesday, as oil stocks outperformed. The S&P 500 rose even as tech stocks took a breather.
The S&P 500 rose 0.1%, with the tech-heavy Nasdaq down 0.2% as of 12:25 EDT. The 10-Year Treasury yield, bearishly, fell to 0.52%, as the current economic recovery potentially slows.
Bond investors largely expect the Federal Reserve to increase the size of its asset purchasing program if yields rise, in an effort to provide economic support. This is keeping risk-averse investors engaged in the treasury market.
Although tech was faltering, many cyclical areas of the market were up slightly, including consumer discretionary, industrials and materials.
Crude oil rose 1.3% to $41 a barrel. BP Oil posted a more than $6 billion net loss, in line with expectations, as oil prices are still too low for most companies to turn a profit. But BP shares spiked, as management said it is moving to a net zero-carbon business model, reaching that level progressively, by 2050.
Plus, the company cut its dividend in half. The stock was down 21% since June 8 into earnings, as the virus spread and states paused reopenings. Plus, the dividend was yielding 10%. BP’s decision to shore up liquidity into an evolving overall strategy is a positive for the stock. The combination of low oil prices and a hint at what other oil majors may do is boosting oil stocks.
Here were the 5 biggest Dow Jones gainers Tuesday as of 12:25:
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