US STOCKS-Wall Street surges, led by energy and materials

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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 +2.13%, S&P 500 +1.34%, Nasdaq +0.94%

(Updates with market close)
By Noel Randewich
July 14 (Reuters) - Wall Street surged on Tuesday, with the
Dow Jones Industrial Average ending more than 2% higher as
investors bought energy and materials stocks and looked beyond a
recent rise in coronavirus cases.
The S&P 500 energy .SPNY , materials .SPLRCM and
industrial .SPLRCI indexes jumped more than 2%, while health
.SPXHC , technology .SPLRCT and consumer staples .SPLRCS
each rose more than 1%.
Amazon AMZN.O slipped 0.6%. It and other recently strong
performing technology and growth stocks, including Facebook
FB.O and Netflix NFLX.O , recovered from deeper losses,
giving the Nasdaq a last minute spurt.
"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
0.6% after it posted a smaller-than-expected 51% drop in
second-quarter profit.
Wells Fargo & Co WFC.N tumbled 4.6% after booking a
quarterly loss for the first time since the 2008 financial
crisis. Citigroup Inc C.N dropped 3.9% after it reported a
steep fall in quarterly profit. The S&P 500 banks index .SPXBK dropped 1.2% 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. 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.
The Dow Jones Industrial Average .DJI surged 2.13% to end
at 26,642.59 points, while the S&P 500 .SPX gained 1.34% to
3,197.52.
The Nasdaq Composite .IXIC added 0.94% to 10,488.58.
Delta Air Lines Inc DAL.N dropped 2.65% 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 4.5% 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
1.92-to-1 ratio; on Nasdaq, a 1.63-to-1 ratio favored advancers.
The S&P 500 posted seven new 52-week highs and no new lows;
the Nasdaq Composite recorded 35 new highs and 31 new lows.
Volume on U.S. exchanges was 10.7 billion shares, compared
with the 11.8 billion average for the full session over the last
20 trading days.

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