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US stocks slide as stimulus stalemate continues

A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, New York, U.S., March 3, 2020.

Andrew Kelly/Reuters

  • US stocks slipped on Tuesday as a stalemate in fiscal stimulus negotiations continued.
  • Initial results of the third-quarter earnings season kick off also failed to impress investors.
  • JPMorgan and Citigroup reported quarterly results that beat expectations but were met with falling stock prices.
  • A temporary pause in Johnson & Johnson’s COVID-19 vaccine trial and Eli Lilly’s COVID-19 antibody treatment trial spooked investors awaiting successful vaccines and therapeutics to help stifle the pandemic.
  • Watch major indexes update live here.

US stocks slid on Tuesday as a stalemate in fiscal stimulus negotiations continued and third-quarter earnings season kicked off with reports from banks like JPMorgan and Citigroup.

Major indexes also faced pressure as Johnson & Johnson said it would pause its COVID-19 vaccine trial because of an unexpected illness in a participant.

On top of that, Eli Lilly said it would pause its trial of a COVID-19 antibody treatment over safety concerns. The announcements sent shares of both healthcare companies lower and dented near-term hopes for a vaccine or therapeutic.

JPMorgan reported better-than-expected earnings, helped partly by a surge in trading revenue that was buoyed by a rise in global stocks. Citigroup also benefited from a jump in trading revenue, helping it to report earnings that beat analysts’ expectations.

Here’s where US indexes stood at the 4 p.m. ET market close on Tuesday:

Read more: MORGAN STANLEY: Buy these 44 cheap stocks poised to surge as the economy continues to recover and reopening expands.

Aside from its vaccine hiccup, Johnson & Johnson also reported earnings that beat analysts’ estimates and raised its fiscal 2020 revenue and earnings guidance.

Shares of Disney climbed after it announced it would reorganize its media-and-entertainment business to focus on its streaming ambitions with its Disney Plus service.

The IMF raised its global GDP outlook but said the stock market could face a sharp correction if the COVID-19 pandemic persists for longer than investors expect.

Read more: Goldman Sachs says buy these 35 stocks for big gains right now as they offer double-digit sales growth and explosive margin expansion

Despite the stalemate in fiscal negotiations, a breakthrough could be just around the corner after Mitch McConnell signaled support for passing a stimulus deal prior to the upcoming election. 

Apple slid on Tuesday as it announced its new iPhone 12 lineup, representing the first major redesign to its flagship product in over 3 years. 

Gold fell as much as 1.9%, to $1,886.54 per ounce.

Oil traded higher. West Texas Intermediate crude jumped as much as 2.8%, to $40.53 per barrel. Brent crude, oil’s international benchmark, rose 2.3%, to $42.68 per barrel, at intraday highs.

Read more: Morgan Stanley lays out its 5 favorite trades for investors looking to dominate a looming V-shaped recovery, even if a stimulus deal takes until 2021

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