US Stocks gain on improving coronavirus outlook

The US equity market finished session solidly higher on Tuesday, 14 April 2020, as investors embraced progress in cutting the number of new coronavirus cases in some of the hardest-hit areas, even as earnings reports from big banks indicated that the coronavirus is taking a toll. At closing bell, the Dow Jones Industrial Average rose 558.99 points, or 2.4%, to 23,949.76. The S&P 500 gained 84.43 points, or 3.1%, to 2,846.06. The Nasdaq Composite advanced 323.32 points, or 4%, to 8,515.74.

Stocks have charged higher on signs that the coronavirus pandemic is slowing in hard-hit locations so much so that two groups of governors began discussing this week how they would gradually ease social-distancing guidelines and on prospects of the economy reopening soon. Ten U.S. states that account for nearly 38% of the U.S. economy began working on plans to reopen for business, as parts of the U.S. saw signs of a leveling-off in the number of COVID-19 cases.

More than 16 million people have filed for unemployment in the past three weeks, a number that is expected to swell as businesses that once seemed insulated from the virus now have to tighten budgets. Additionally, the International Monetary Fund's chief economist warned on Tuesday that global efforts to contain the coronavirus could result in the loss of $9 trillion in economic activity through 2021, making it the worst recession since the Great Depression.

St. Louis Federal Reserve President James Bullard said quarantining could exact a $25 billion daily toll on the U.S. economy and reiterated his call for more testing, rather than quarantining, while speaking at a regional COVID-19 Briefing Series.

The start of earnings season Tuesday revealed the growing damage already seen from the coronavirus. JPMorgan Chase and Wells Fargo reported steep declines in first-quarter profits as they set aside billions of dollars for potential losses on loans to consumers and companies.

Tuesday's gains were broad, with 10 of the S&P 500's 11 sectors gaining. Only the energy sector fell. In financials, Wells Fargo and JPMorgan shares initially climbed but swung lower, off 4% and 2.8%, respectively. Citigroup, which is scheduled to report Wednesday, fell 2.7%.

Johnson & Johnson propelled the Dow higher, rising more than 4%, after it reported better-than-expected quarterly earnings and boosted its dividend as the coronavirus drove demand for over-the-counter medicine.

A jump for Apple Inc helped to put the Nasdaq on course for a fourth straight day of gains as data showed iPhone shipments to China rebounded slightly in March after crashing in February. Tesla Inc surged more than 9% after brokerage Credit Suisse upgraded the electric car maker's stock to "neutral."

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