Wall Street nudged to another all-time high on Tuesday, even as major U.S. companies revealed just how much they’re feeling the heat from ongoing trade tariffs.
The S&P 500 crept up 0.1%, extending its record from Monday. The Dow Jones Industrial Average gained 179 points (0.4%), while the Nasdaq composite dipped 0.4% from its own previous high.
GM Stumbles Despite Strong Profits
General Motors was in the spotlight, but not for the right reasons. Its stock tumbled 8.1% even after beating analysts' profit expectations for the spring quarter. GM warned that tariffs could shave off between $4 billion and $5 billion from its 2025 earnings, with only 30% of that possibly being recovered. The company also expects more pain from tariffs in the current quarter than it experienced earlier this year.
Homebuilders Surged on Strong Numbers
On the brighter side, homebuilders like D.R. Horton and PulteGroup delivered stronger-than-expected profits. D.R. Horton jumped 17%, and PulteGroup soared 11.5%. Still, both companies noted that homebuyers are struggling with high mortgage rates and economic uncertainty.
The Tariff Timeline and Trade Talks
The U.S. economy appears to be weathering the ongoing trade battles. Many of the tariffs proposed by President Donald Trump remain paused for now, with the next deadline looming on August 1. Negotiations with other countries are ongoing in hopes of reducing the proposed import taxes before they’re implemented.
President Trump also announced a new trade agreement with the Philippines on Tuesday. Under the deal, the U.S. will lower some tariffs on goods from the Philippines, and in return, the Philippines won't impose taxes on American products.
Other Companies Feel the Pressure
Atlanta-based Genuine Parts, which sells auto and industrial replacement parts globally, lowered its profit outlook for the rest of the year. The company is adjusting to existing U.S. tariffs and anticipating tough business conditions ahead. Still, its stock rose 7.6% after beating earnings expectations for the quarter.
RTX’s stock slipped 1.6% after the company revised its 2025 outlook—lowering profit projections but raising revenue forecasts. CEO Chris Calio cited tariffs and recent U.S. tax policy changes as reasons for the shift.
Coca-Cola’s stock fell 0.6% despite delivering a stronger profit. The beverage giant’s revenue slightly beat expectations, thanks to price increases that helped offset a dip in sales volume during spring.
Meme Stock Opendoor Slips After Surge
Opendoor Technologies, a favorite among meme stock traders, fell 10.3% to $2.88 after peaking at $3.99 earlier in the day. Just two weeks ago, the stock was trading at only 78 cents.
The Market Wrap
- S&P 500: Rose 4.02 points to 6,309.62
- Dow Jones: Gained 179.37 points to 44,502.44
- Nasdaq: Fell 81.49 points to 20,892.68
Bond Yields and Fed Watch
Treasury yields fell as investors bet the Federal Reserve will hold off on cutting interest rates until at least September. Fed Chair Jerome Powell remains cautious, saying more economic data is needed before making another move—particularly around how tariffs are influencing inflation. The yield on the 10-year Treasury slipped to 4.34% from 4.38%.
Overseas Markets Mixed
Japan’s markets were unsettled after a holiday closure. The Nikkei 225 dipped 0.1% following the ruling coalition’s loss in the upper house elections. Prime Minister Shigeru Ishiba’s vow to stay in office temporarily steadied the market, but political uncertainty still hangs heavy. Meanwhile, other markets across Asia and Europe showed mixed results.
