US STOCKS-S&P 500 closes slightly higher as stimulus hopes lift cyclical stocks

(For a live blog on the U.S. stock market, click LIVE/ or
type LIVE/ in a news window)
(Updates to market close)
By Stephen Culp
NEW YORK, July 21 (Reuters) - The S&P 500 edged higher on
Tuesday as investors rotated into economically sensitive
cyclical stocks, optimistic that Washington will deliver a new
round of stimulus to sustain the U.S. economic recovery from a
pandemic-induced recession.
Financial, industrial and energy stocks gave the biggest
boosts to the bellwether S&P 500 and blue-chip Dow as investors
pivoted back to cyclicals. A drop in tech shares pulled the
Nasdaq lower.
"Economically sensitive areas are doing very well today,"
said Peter Tuz, president of Chase Investment Counsel in
Charlottesville, Virginia. "My guess is it's because of the
stimulus here and in Europe and decent earnings reports from a
variety of different companies."
As new infections of COVID-19 surged in the United States,
lawmakers on Capitol Hill wrestled to craft a new stimulus
package with less than two weeks until the expiry of extended
unemployment aid for millions of Americans. "A pick-up in demand is being seen throughout the economy as
things have opened up," Tuz added. "We're at the cusp of
continuing with the recovery or stagnation."
Elsewhere, the 27-member European Union reached an agreement
on a massive $857 billion pandemic recovery plan at the
conclusion of a rocky, five-day summit.
Unofficially, the Dow Jones Industrial Average .DJI rose
159.81 points, or 0.6%, to 26,840.68, the S&P 500 .SPX gained
5.47 points, or 0.17%, to 3,257.31 and the Nasdaq Composite
.IXIC dropped 86.73 points, or 0.81%, to 10,680.36.
Energy companies .SPNY enjoyed their largest daily jump
since June 5, as crude prices CLc1 climbed amid signs of
rebounding demand. O/R
Second-quarter reporting season rolled on, with 58
constituents of the S&P 500 having reported. Of those, 77.6%
have come in above consensus, according to Refinitiv data.
But expectations have set a low bar. Analysts now see
aggregate S&P 500 earnings for the April to June period having
declined by 41.8% year-on-year, per Refinitiv.
Coca-cola Co KO.N advanced after the beverage maker beat
earnings estimates and said demand is improving. Defense industrial Lockheed Martin Corp LMT.N topped
quarterly consensus estimates and raised its full-year profit
and revenue estimates, sending its shares higher. Tesla Inc TSLA.O retreated from Monday's record closing
high after JPMorgan Chase downgraded the electric car maker's
stock to "market perform." After the bell, United Airlines Holdings Inc UAL.O is
expected to post results for a quarter that was particularly
challenging for commercial air carriers.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
S&P 500 is about 4% from it's Feb.19 record close https://tmsnrt.rs/2OIutm1
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>