US Stock Market Overview – Stock Close Mixed, Energy Rises and Technology Lags

US stocks were mixed on Tuesday as the Nasdaq turned south after hitting fresh all-time highs intra-day. The Dow and the S&P 500 index finished the session in the black. Most sectors in the S&P 500 were higher led by a surge in energy shares which saw gains on the back of higher crude oil prices. Technology shares bucked the trend. The EU finally decided on a rescue package that helped buoy the Euro and weighed on the greenback. The decline in the US dollar generated gains in metal and mining along with energy. United Airlines reported huge losses in the Q2 but were better than expected on the top line. The VIX volatility index declined to fall below 24, for the first time since February but rebounded late in the session.

United Losses Pile up in the Q2

United Airlines on Tuesday said it lost $1.63 billion during the second quarter, driven by a plunge in air travel demand because of the coronavirus pandemic. During the same quarter last year, it posted a $1.05 billion profit. Revenue plunged to $1.48 billion in the three months ended June 30, an 87% drop from $11.4 billion during the same time last year. The sharp decline in sales wasn’t as bad as feared, beating analysts’ estimates of $1.32 billion.

The EU Finally Decides on a Rescue Package

The Final details showed EUR750 billion total that would consist of grants at EUR390 billion.  France and Germany had wanted this amount at EUR500 billion.  The money for the package will come out of the EU budget and loans will have to be repaid by 2058.