Stocks flat as companies report quarterly losses

Stocks flat as companies report quarterly losses
© Greg Nash

Stocks erased minor losses after the opening bell Tuesday as companies began reporting losses for the second quarter, giving traders a deeper understanding of how the COVID-19 pandemic affected the economy.

The Dow Jones Industrial Average was up 26 points or 0.1 percent, and the S&P 500 increased 0.7 points, or zero percent.

Wells Fargo announced a $2.4 billion net loss in the second quarter, and cut its quarterly dividend by more than expected, while Delta Airlines lost $5.7 billion, its worst loss since the financial crisis in 2008.

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JPMorgan Chase, on the other hand, reported $4.7 billion in earnings, a 51 percent drop from last year, but still positive.

The bank's CEO Jamie Dimon noted that the economic path ahead remained uncertain.

"Despite some recent positive macroeconomic data and significant, decisive government action, we still face much uncertainty regarding the future path of the economy," Dimon said in a statement.

Markets are expecting a 44 percent drop in earnings for the second quarter.