US stocks sink at open amid earnings, Covid worries

Wall Street opened in a bad mood Tuesday, with major indices sinking as traders assessed worrying Covid-19 developments and third quarter earnings.

About 30 minutes into the session, the benchmark Dow Jones Industrial Average had sunk 0.2% to 28 789.65, while the broad-based S&P 500 was also down 0.1% at 3 529.42.

The tech-rich Nasdaq shot up 2.6% on Monday ahead of Apple's expected new iPhone launch, but was flat on Tuesday at 11 880.58.

The shift in sentiment came as "investors look over some results out of the financial sector to unofficially kick off third quarter earnings season, as well as news that Johnson & Johnson has temporarily halted its Covid-19 vaccine study," Charles Schwab investment bank said.

Vaccines are seen as key to restoring normalcy following the pandemic, and the disappointing news from Johnson & Johnson sent the pharmaceutical giant's stock down 1.6%.

Apple's stock, which on Monday shot up 6.4% ahead of a much-anticipated event where the tech giant is expected to unveil its 5G-capable iPhone 12 line-up, was also down 1.1%.

JPMorgan Chase fell 0.3% despite reporting higher third-quarter earnings behind the strength in investment banking.

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