US stocks trade mixed as investors weigh climbing COVID-19 cases against reopening plans

Coronavirus cases continue to climb in multiple US states, leading to rollbacks of reopening phases and new restrictions.
Federal Reserve Chairman Jerome Powell and Treasury Secretary Steve Mnuchin are set to testify before the House Financial Services committee at 12:30 p.m. on Tuesday.
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US stocks traded mixed on Tuesday amid a continued increase in coronavirus cases, which investors fear could derail or slow economic-reopening activity in some states.

States such as Texas, California, Florida, and Arizona have rolled back reopening plans and imposed new restrictions as local COVID-19 cases have spiked. On Monday, New Jersey delayed indoor dining in its phased reopening, and New York said it would also consider postponing the phase.

Here's where US indexes stood shortly after the 9:30 a.m. ET market open on Tuesday:

S&P 500 : 3,054.87, up 0.1%
: 25,547.14, down 0.2% (49 points)
Nasdaq composite : 9,894.41, up 0.2%

Wells Fargo declined after saying it would likely slash its dividend in the third quarter to comply with the Federal Reserve's stress test. Bank of America, Citigroup, Goldman Sachs, and JPMorgan said their dividends would remain the same.

Shares of Boeing slumped Tuesday after Norwegian Air Shuttle cancelled a deal for its jets. Uber rose on news that it is considering purchasing Postmates Inc for about $2.6 billion .

Meanwhile, Federal Reserve Chairman Jerome Powell and Treasury Secretary Steve Mnuchin are set to testify before the House Financial Services committee at 12:30 p.m. on Tuesday. In prepared remarks released Monday ahead of the event, Powell warned that failing to contain the virus could be a problem for the economy going forward.

In global news, Chinese President Xi Jinping signed a national security law for Hong Kong, set to go into effect on Tuesday. The law could spark tensions between the US and China, and threaten Hong Kong's standing as a financial hub.

Still, China's economy is showing signs of a rebound from the coronavirus pandemic. The country's purchasing managers index climbed to a three-month high in June, surpassing economist estimates.

Oil prices slid. West Texas Intermediate crude as much as 2.1%, to $38.85 per barrel. Brent crude, oil's international benchmark, fell 1.9%, to $40.90 per barrel, at intraday lows.

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