ASX set to rise, Wall Street mixed; Trump labels Fed chief a ‘numbskull'
The S&P 500 was 0.1 per cent higher in late trading and on track to squeak to another all-time high. The Dow Jones was up 164 points, or 0.4 per cent, in late trade, and the Nasdaq composite was down 0.2 per cent after setting its own record.
The Australian sharemarket is set to rise, with futures pointing to a gain of 40 points, or 0.5 per cent, at the open. The ASX edged 0.1 per cent higher on Tuesday.
General Motors dropped 7.5 per cent despite reporting a stronger profit for the spring than analysts expected. The automaker said it's still expecting a $US4 billion-$US5 billion ($6.1 billion- $7.6 billion) hit to its results over 2025 because of tariffs and that it hopes to mitigate 30 per cent of that. GM also said it will feel more pain because of tariffs in the current quarter than it did during the spring.
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That helped to offset big gains for some homebuilders after they reported stronger profits for the spring than Wall Street had forecast. D.R. Horton rallied 16.5 per cent, and PulteGroup jumped 11.4 per cent. That was even as both companies said homebuyers are continuing to deal with challenging conditions, including higher mortgage rates and an uncertain economy.
So far, the US economy seems to be powering through all the uncertainty created by Trump's on-and-off tariffs. Many of Trump's stiff proposed taxes on imports are currently on pause, and the next big deadline is Aug. 1. Talks are underway on possible trade deals with other countries that could lower the proposed tariffs before they kick in.
Companies are already feeling effects. Genuine Parts, the Atlanta-based company that sells auto and industrial replacement parts around the world, trimmed its profit forecast for the full year in order to incorporate 'all US tariffs currently in effect,' along with its updated expectations for business conditions in the second half of the year.
Its stock rose 6.5 per cent after it reported a stronger profit for the latest quarter than analysts expected.
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