U.S. Stocks Mixed While Tariffs Hit Earnings/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks stayed near record highs Tuesday despite mixed corporate earnings that highlighted the growing impact of President Trump’s tariffs. General Motors warned of a multibillion-dollar hit, dragging the market, while homebuilders outperformed expectations. Markets are now bracing for the next round of potential tariff hikes on August 1.
Wall Street & Tariff Impact Quick Looks
- S&P 500 was flat, Dow Jones up 27 points, and Nasdaq slipped 0.1%.
- General Motors dropped 5.2% after citing a $4–5 billion tariff hit in 2025.
- D.R. Horton (+10.2%) and PulteGroup (+7.7%) topped earnings forecasts.
- Genuine Parts cut its full-year profit outlook due to current tariffs.
- Coca-Cola fell 1.6% despite beating quarterly earnings expectations.
- Fed Chair Powell signals wait-and-see approach on rate cuts.
- Aug. 1 deadline looms for additional Trump tariffs.
- Asian and European markets react to political uncertainty and U.S. trade moves.
Deep Look: Wall Street Clings to Record Levels as Trump’s Tariffs Start to Weigh on U.S. Companies
Wall Street remained on edge Tuesday, with key indexes hovering near record highs despite fresh evidence that President Donald Trump’s tariff policies are beginning to take a toll on U.S. corporations.
The S&P 500 was nearly flat in early trading, maintaining its all-time high set just a day earlier. The Dow Jones Industrial Average gained a modest 27 points (0.1%), while the Nasdaq composite dipped 0.1%. The moves reflect investor uncertainty as earnings season unfolds under the shadow of trade policy volatility.
General Motors: Strong Earnings, But Big Tariff Trouble
Shares of General Motors sank 5.2% after the automaker beat Wall Street’s quarterly profit expectations but issued a stark warning: it expects a $4 billion to $5 billion hit from tariffs over 2025. GM noted that its tariff-related costs would escalate further in the current quarter, emphasizing how deeply current and potential trade policies are reshaping bottom lines.
Despite plans to mitigate up to 30% of the impact, the announcement rattled markets and highlighted the uncertainty surrounding trade talks as the August 1 deadline for new tariff implementation approaches.
Homebuilders Rally Amid Housing Challenges
The downward pressure was offset by strong gains from homebuilders like D.R. Horton (+10.2%) and PulteGroup (+7.7%), both of which reported better-than-expected profits for the spring. Their results defied ongoing challenges including high mortgage rates and economic uncertainty.
Still, both companies acknowledged the difficult environment and warned that consumers remain cautious, raising questions about the sustainability of growth in the housing sector.
Genuine Parts & Coca-Cola Navigate Tariff Terrain
Genuine Parts, a major auto and industrial parts supplier, slashed its full-year profit guidance to reflect the realities of Trump’s current tariff framework. Yet, the company’s stock rose 2.5% after it exceeded Q2 earnings expectations.
Coca-Cola, meanwhile, fell 1.6% after reporting mixed results. While profits topped estimates, revenue narrowly exceeded projections, and the company acknowledged that higher prices masked weaker overall case sales during the spring.
Fed Keeps Rates Steady as Trade Uncertainty Lingers
In the bond market, Treasury yields stayed mostly flat as investors await more data before expecting any changes in Federal Reserve policy. The 10-year Treasury yield dipped to 4.36%, down from 4.38% Monday.
Fed Chair Jerome Powell reiterated that the central bank will need more clarity on the inflationary effects of tariffs before adjusting interest rates. Trump has openly pushed for rate cuts to boost the economy, but the Fed remains cautious.
Global Markets Eye Trade Talks, Japan Reacts to Election Fallout
Global indexes delivered mixed performances. In Asia, Japan’s Nikkei 225 slipped 0.1% after an initial post-holiday surge, as political uncertainty weighed on investor sentiment. Prime Minister Shigeru Ishiba vowed to stay in power despite his coalition losing its upper-house majority, and all eyes are on his next steps — including ongoing trade negotiations with the U.S..
Markets across Europe trended lower, reflecting global investor anxiety about America’s looming tariff decisions and the political instability in key economies.
Tariff Deadline Approaches: What’s Next?
With August 1 marking the next deadline for another round of proposed tariffs under Trump’s administration, companies and investors alike are closely watching Washington’s negotiations. Despite ongoing talks, the lack of a definitive trade agreement continues to cast a long shadow over corporate forecasting and stock performance.
U.S. multinationals, particularly those in automotive, consumer goods, and manufacturing sectors, are recalculating expectations and issuing cautionary guidance based on current and pending tariffs.
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