US STOCKS-Dow jumps 1.6%, leads Wall Street higher

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* Moderna to start late-stage trial of COVID-19 vaccine in
July
* JPMorgan tops estimates, Wells Fargo swings to loss
* Delta warns air travel recovery two years away
* Indexes: Dow +1.6%, S&P 500 +0.8%, Nasdaq +0.4%

(Updates with afternoon trading)
By Noel Randewich
July 14 (Reuters) - Wall Street rose on Tuesday, led by
energy and materials, as investors looked beyond a recent surge
in coronavirus cases and rotated out Amazon and other recent
strong performers.
The S&P 500 energy .SPNY , materials .SPLRCM industrial
.SPLRCI , health .SPXHC and consumer staples .SPLRCS
indexes all jumped more than 1%.
Limiting gains in the Nasdaq and S&P 500, Amazon AMZN.O
fell 1.1%, extending a rotation that began Monday out of many
big-name technology and momentum stocks that have led much of
the U.S. stock market's rebound since March.
"Today is counterintuitive. We are reading about
California's economy shutting down and a record spike in cases
in Florida, and yet you have energy stocks leading," said Bob
Shea, chief executive officer at TrimTabs Asset Management in
New York. "We're seeing a mini-rotation into value."
JPMorgan Chase & Co JPM.N , the largest U.S. lender, rose
0.3% after it posted a smaller-than-expected 51% drop in
second-quarter profit.
Wells Fargo & Co WFC.N tumbled 5.3% after booking a
quarterly loss for the first time since the 2008 financial
crisis. Citigroup Inc C.N dropped 3.6% as it reported a steep
fall in quarterly profit. The S&P 500 banks index .SPXBK slumped 1.6% as the three
banks set aside a combined $28 billion to cover potential losses
on loans to borrowers hurt by the coronavirus pandemic.
Wall Street has reclaimed most of its coronavirus-driven
losses since March as a raft of monetary and fiscal stimulus and
upbeat economic data raised hopes of a swift post-pandemic
recovery.
But a recent record surge in COVID-19 cases and new business
restrictions, particularly in California, has again raised
uncertainty about how it may take for the economy to recover.
Alabama, Florida and North Carolina reported record daily
increases in COVID-19 deaths on Tuesday. Facebook FB.O , Netflix NFLX.O and Alphabet GOOGL.O
each fell less than 1% while Apple AAPL.O climbed 1.1%.
Investors are bracing for what could be the sharpest drop in
quarterly earnings for S&P 500 firms since the 2008 financial
crisis, according to Refinitiv IBES data.
At 2:33 p.m. ET (1833 GMT), the Dow Jones Industrial Average
.DJI was up 1.61% at 26,506.74 points, while the S&P 500
.SPX gained 0.81% to 3,180.87.
The Nasdaq Composite .IXIC added 0.35% to 10,427.65.
Delta Air Lines Inc DAL.N fell 2.1% after it warned it
will be more than two years before the industry sees a
sustainable recovery from the "staggering" impact of the
coronavirus pandemic, with demand largely tracking the curve of
infections in different places. Moderna Inc MRNA.O jumped 4% after it said it plans to
start a late-stage clinical trial for its COVID-19 vaccine
candidate on or around July 27. Advancing issues outnumbered declining ones on the NYSE by a
1.55-to-1 ratio; on Nasdaq, a 1.23-to-1 ratio favored advancers.
The S&P 500 posted five new 52-week highs and no new lows;
the Nasdaq Composite recorded 26 new highs and 28 new lows.

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COVID-19's growing potential economic impact https://tmsnrt.rs/307zCt5
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