Stock Market Today: Momentum Swings the Dow's Way
Many of the Dow Jones' economically sensitive components pushed higher on Tuesday on the back of slightly better COVID-19 data from a few U.S. hotspots.
![](https://cdn.mos.cms.futurecdn.net/QahtMRmhXGxkAvUMRasYpJ-415-80.jpg)
A day after California's widespread business closings knocked the major indices down a couple rungs, investors got word of declining daily caseloads of COVID-19 in that state and hard-hit Florida and moved to prop up more cyclical sectors.
Caterpillar (CAT, +4.9%) helped lead the Dow higher Tuesday, and energy stocks such as Exxon Mobil (XOM, +3.3%) and Chevron (CVX, +3.5%) also advanced the cause.
Financial stocks were more muted, however, after Wells Fargo (WFC, -4.6%) not only reported its first quarterly loss since 2008, but became the latest marquee company to cut its dividend, hacking its payout from 31 cents quarterly to 10 cents. Indeed, financials (XLF, +0.6%) were the weakest of the 11 market sectors.
![https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png](https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-320-80.png)
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The major indices all enjoyed a flourish to finish Tuesday's trading. The Dow Jones Industrial Average led the way with a 2.1% gain to 26,642. The small-cap Russell 2000 logged a 1.6% gain to 1,426, and the S&P 500 improved 1.3% to 3,197. And the Nasdaq lagged again, up 0.9% to 10,488.
Can Emerging Markets Keep Rallying, Too?
Like the Nasdaq, red-hot emerging markets such as China, Taiwan and India have started to cool just a smidgen. But a little near-term weakness might spell opportunity for an entry into these and other high-growth markets, if their economic recoveries persist.
Consider that while the International Monetary Fund (IMF) is projecting U.S. GDP to decline 8% in 2020, China's economy could actually grow by 1% – great news for some of the country's top stocks.
Barclays analysts see at least shorter-term resilience out of China.
"We expect Q2 GDP to rebound to 3.5% y/y from -6.8%, driven by strong IP (supply side), and resilient exports and rebounding infrastructure investment (demand side)," they write. And on the coronavirus front: "The new outbreak appears to be under control in China, as no new local infection cases were reported in the past four days (6-9 July)."
Meanwhile, in 2021, the IMF is looking for 8.2% expansion from China, and 5.9% economic growth across EMs more broadly.
If you like to live a little dangerously, you can attack emerging markets via individual stocks such as these 11 rebounding picks. However, if you're a buy-and-hold investor who wants to add this 1-2 punch of geographical diversification and growth potential without sticking your neck out that far, funds might be the better route for you.
Read on as we analyze these 10 emerging markets ETFs, which provide different types of exposure for every kind of investor, whether you're looking for plain-vanilla breadth, a tech-heavy portfolio, feel-good ESG stocks or even fixed income.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.
Kyle was previously the Senior Investing Editor for Kiplinger.com, and the Managing Editor for InvestorPlace.com before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism.
You can check out his thoughts on the markets (and more) at @KyleWoodley.
-
Visa Is the Worst Dow Stock Wednesday. Here's Why
Visa stock is down sharply Wednesday after the credit card company came up short of revenue expectations for its fiscal Q3.
By Joey Solitro Published
-
Another Analyst Moves to the Sidelines on Tesla Stock After Earnings
Tesla stock is spiraling Wednesday after the EV maker's big earnings miss and Wall Street has been quick to weigh in. Here's what you need to know.
By Joey Solitro Published
-
Stock Market Today: Stocks Tumble on Disappointing Big Tech Earnings
Poorly received quarterly results from Alphabet and Tesla sparked a steep selloff in equities.
By Karee Venema Published
-
Stock Market Today: Mega-Cap Tech Rallies to Drag Markets Higher
Markets focused on upcoming earnings from Magnificent 7 stocks rather than chaos in D.C.
By Dan Burrows Published
-
Stock Market Today: Stocks Tumble After Spectacular Global Internet Crash
Market participants rushed out of risk assets to end a wild week of trading.
By Dan Burrows Published
-
Stock Market Today: Dow Sinks 533 Points as Big Banks, Mega Caps Slump
Goldman Sachs and Apple were two of the worst-performing blue chip stocks on Thursday.
By Karee Venema Published
-
Stock Market Today: Semis Get Slammed and Blue Chips Bounce
The potential for more curbs on tech sales to China set off a rotation into blue chips.
By Dan Burrows Published
-
Stock Market Today: Dow Spikes 742 Points After UnitedHealth Earnings
The S&P 500 and Nasdaq also scored wins Tuesday albeit with much smaller gains than the blue chip Dow.
By Karee Venema Published
-
Stock Market Today: Dow Adds 210 Points as Apple, Goldman Hit New Highs
A big rally in blue chips and some dovish Fed speak boosted the equities market Monday.
By Karee Venema Published
-
Stock Market Today: Markets Bounce Back on Rate-Cut Optimism
The latest readings on consumer sentiment and inflation helped lift the odds of the Fed easing in September.
By Dan Burrows Published