Wall Street mixed; GM slumps as tariffs bite
GM (GM.N), opens new tab tumbled almost 7% after the automaker reported a $1 billion hit from tariffs to its quarterly results, adding more fuel to investor concerns about U.S. President Donald Trump's global trade policy. Shares of Ford Motor (F.N), opens new tab lost almost 1%.
Tesla (TSLA.O), opens new tab climbed 1.2% a day before its quarterly report, while Alphabet (GOOGL.O), opens new tab, also reporting on Wednesday, rose 0.3%.
Optimism about heavy spending on artificial intelligence has underpinned a rally in Wall Street's most valuable companies, with the S&P 500 hitting a record high on Monday.
"The market is consolidating recent gains and is in a bit of a holding pattern with some huge catalysts over the next week or two, including the August 1 tariff deadline and a lot of important Magnificent Seven earnings," said Ross Mayfield, an investment strategy analyst at Baird.
Other Big Tech stocks lost ground, with Meta Platforms (META.O), opens new tab down 1.3% and Microsoft (MSFT.O), opens new tab dipping 0.7%.
Shares of RTX (RTX.N), opens new tab dropped 1.3% after the aerospace and defense giant t from Trump's trade war despite strong demand for its engines and aftermarket services.
Lockheed Martin (LMT.N), opens new tab tumbled 8% after its quarterly profit plunged by about 80%.
U.S. trade policy remains a major point of uncertainty for investors and companies as Trump's self-imposed August 1 deadline for many countries to reach agreements with the White House approaches.
U.S. Treasury Secretary Scott Bessent said he would meet his Chinese counterpart next week to discuss an extension to the August 12 deadline set for tariffs on imports from China.
Other trade negotiations appeared stalled, with optimism for a breakthrough deal with India waning and EU officials weighing countermeasures against the United States.
The S&P 500 was up 0.01% at 6,306.28 points.
The Nasdaq declined 0.36% to 20,898.66 points, while the Dow Jones Industrial Average was up 0.23% at 44,425.88 points.
Nine of the 11 S&P 500 sector indexes rose, led by healthcare (.SPXHC), opens new tab, up 1.46%, followed by a 1.29% gain in real estate (.SPLRCR), opens new tab.
Philip Morris (PM.N), opens new tab slumped 7.3% after reporting second-quarter revenue below expectations, as shipments of its ZYN nicotine pouches disappointed investors.
Analysts on average expected S&P 500 companies to report a 7% increase in earnings for the second quarter, with technology heavyweights driving much of that gain, according to LSEG I/B/E/S.
After last week's mixed economic data, traders have all but ruled out an interest-rate cut from the U.S. Federal Reserve at next week's policy meeting. They now see about a 60% chance of a reduction in September, according to the CME's FedWatch tool.
Advancing issues outnumbered falling ones within the S&P 500 (.AD.SPX), opens new tab by a 3.8-to-one ratio.
The S&P 500 posted 17 new highs and one new low; the Nasdaq recorded 55 new highs and 39 new lows.
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