Investing.com — U.S. stock markets opened mixed on Tuesday, as problems with another Covid-19 drug trial dented sentiment toward cyclicals, while the first bank earnings of the quarter both pointed to a slowdown in consumer spending.
By 9:35 AM ET (1335 GMT), the Dow Jones Industrial Average was down 57 points, or 0.2%, at 28,781 points. The S&P 500 was down 0.1% and the Nasdaq Composite was up 0.1%, with megacaps Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) supporting as the two giants prepare for their biggest marketing events of the year later.
Apple stock fell 1.8% after its biggest one-day gain in months on Monday, while Amazon stock was down 0.3%, after rising over 10% in the last week.
Earlier, JPMorgan (NYSE:JPM) had reported much better-than-expected results for the third quarter, as its provisions against credit losses fell to only $611 million from $8.9 billion three months earlier, a suggestion that the worst has already been priced in, as regards the fate of the bank’s loan book. JPMorgan stock still fell 0.5%, as investors zeroed in on falling revenue, especially at its consumer division, where revenue fell 9%. Similar concerns also hit Citigroup (NYSE:C) stock, which fell 1.2% after the bank reported a 34% drop in profit for the quarter.
By contrast, BlackRock (NYSE:BLK) stock rose 3.7% to a new all-time high after the asset manager’s results comfortably surpassed expectations.
There was little reaction earlier to figures showing U.S. consumer inflation still running below 2.0%, both in headline and in underlying terms.
Sentiment had been hurt overnight by the news that Johnson & Johnson had paused its stage 3 trial of its experimental drug for treating Covid-19, due to an unexplained illness in one of the study participants. It’s the second of the more promising experimental drugs to experence such a setback, after the AstraZeneca-Oxford University drug