US stocks open strong virus news

US stocks opened strongly Tuesday on news that the rate of new infection has declined recently in New York, hardest hit by the outbreak, and raising hopes that the worst has past. Investors placed their bets Tuesday, sending the market higher.

Two major banks reported weaker-than-expected earnings, but a major drug company remained strong. Oil futures declined. Yield on the 10-year US Treasury bond dipped slightly.

President Donald Trump is expected to announce plans Tuesday for a team of experts who will review the economic impact of the coronavirus and develop a plan to lift the national lockdown.

In early trading, the Dow Jones Industrial Average rose 579.95 points, or 2.47 percent, to 23,970.71. The S&P 500 rose 2.55 percent. The Nasdaq composite rose 3.03 percent.

First quarter profit for New York-based JPMorgan Chase, the nation's largest bank by assets, plunged 69 percent and the company earmarked $6.8 billion to cover potential losses on consumer and business loans as many struggle to pay their debts amid the coronavirus outbreak.

The bank's profit fell to $2.87 billion, or $0.78 a share, compared with $9.18 billion, or $2.65 a share, a year earlier. The consensus Wall Street estimate was $2.16 a share.

JPMorgan Chase reported its first earnings decline in two years. Previously, earnings rose each quarter. Bank CEO James Dimon said he expects a "bad recession" as the economic disruption from the coronavirus, also called COVID-19, deepens.

In early trading, JPMorgan Chase's stock rose 0.92 percent.

But San Francisco-based Wells Fargo Bank reported profit of 1 cent per share compared with $1.20 a share a year earlier. Analysts expected the company to earn 33 cents a share. Revenue of $17.71 billion missed estimates of $19.28 billion.

In early trading, Wells Fargo's stock rose 1.45 percent.

Johnson & Johnson, a major provider of consumer health products, said first quarter profits rose as the coronavirus drove demand for over-the-count medicine such as Tylenol.

In March, the drug maker said it expects human testing of its experimental vaccine for the coronavirus to begin by September and, if successful, it could be available for emergency use early next year.

In addition, Johnson & Johnson has budgeted $1 billion for a partnership with the US Biomedical Advanced Research and Development Authority to co-fund vaccine research.

The company reported net income of $5.8 billion, or $2.17 a share, compared with $3.75 billion, or $1.39 a share, for the same quarter a year ago. Adjusted earnings were $2.30 a share, beating Wall Street's estimates of $2.01 a share. Worldwide sales increased 3.3 percent to $20.69 billion from a year ago, topping the $19.73 billion analysts had projected.

Johnson & Johnson raised its dividend to $1.01 a share from 95 cents, a 6.3 percent increase.

In early trading, Johnson & Johnson's stock rose 3.74 percent.

In addition, Johnson & Johnson has budgeted $1 billion for a partnership with the US Biomedical Advanced Research and Development Authority to co-fund vaccine research.