Stocks Move Higher As Earnings Season Kicks Off

The Dow Jones industrial average was up 1.9%, over 400 points, on Tuesday, while the S&P 500 rose 1.9% and the Nasdaq Composite gained 2.1%.

Wall Street has become more optimistic about the coronavirus outlook, with the number of new cases in the U.S. starting to level off—switching the point of focus to when the economy can re-open again. 

Investors have also been bracing themselves for the start of corporate earnings—with profit and loss estimates expected to be murky—as companies indicate how much of an impact the coronavirus crisis has had on their businesses.

Earnings season kicked off with JPMorgan on Tuesday posting a big profit decline but also record trading revenue, which sent the bank’s stock 1.5% higher. Wells Fargo, on the other hand, reported expectations well below estimates and set aside money for credit losses due to the coronavirus pandemic.

Shares of drugmaker and consumer goods company Johnson & Johnson rose over 3.5% after the company beat revenue and profit estimates, raising its dividend by 6% even as it slashed its full-year forecast.

Roku stock was up over 11% on Tuesday after it reported solid preliminary first quarter estimates, with revenue slated to beat expectations amid a 49% increase in streaming hours due to widespread stay-at-home orders.