Latest news with #DowJonesIndustrialAverage
CNBC
20 minutes ago
- Business
- CNBC
Jim Cramer says earnings misses at these 3 companies show Trump tariffs are hitting consumers
As key companies' earnings fell short on Tuesday, CNBC's Jim Cramer said investors have begun to realize that President Donald Trump's tariffs are having an impact on consumers. "Long story short: today was a wake-up call," he said. "The tariffs, even reduced tariffs, are starting to roil things. The consumer's not spending as much as I thought. There is an acknowledged slowdown there." The indexes headed lower during Tuesday's session, with the S&P 500 closing down 0.30%, the Nasdaq Composite slipping 0.38% and the Dow Jones Industrial Average losing 0.46%. According to Cramer, three household names — UPS, Whirlpool and Stanley Black & Decker — reported "jarring quarters" that demonstrate problems caused by trade turmoil. Largely seen as a bellwether for the health of the global economy, UPS reported a revenue decline and warned of ongoing macroeconomic uncertainty. "Our sector, specifically the U.S. small package market, was unfavorably impacted by U.S. consumer sentiment that was at historic lows," management said on the conference call. The company also said manufacturing activity in the country remains soft. Consumer appliance maker Whirlpool missed estimates and gave below-consensus guidance for full-year earnings — even as management said the company still expects the new duties to eventually help domestic manufacturers like itself. Stanley Black & Decker reported tariff-related supply chain problems and a slower outdoor buying season. The company also said it would take an $800 million hit this year due to tariffs. To Cramer, these three companies' results signal that parts of the economy might be softer than many think, and he suggested the Federal Reserve might need to cut rates. He also said it's hard to dismiss their results as "one-off" after PayPal posted slower transaction growth — and management reported softer retail spending in the U.S. that was most apparent in areas likely impacted by tariffs. "These companies are experiencing the true worries we had about the tariffs while they were being slapped on earlier this year," he said. "It's entirely possible that the negative effects are one-time only and will go away as we get more trade deals, but right now we're in the thick of it and, you know what, it just doesn't feel good." Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest
The Star
29 minutes ago
- Business
- The Star
U.S. stocks close lower ahead of Fed decision
NEW YORK, July 29 (Xinhua) -- U.S. stocks finished lower on Tuesday as investors weighed a mix of corporate earnings reports and fresh economic data one day before the Federal Reserve's monetary decision. The Dow Jones Industrial Average declined 204.57 points, or 0.46 percent, to close at 44,632.99. The S&P 500 fell 18.91 points, or 0.30 percent, to 6,370.86, while the Nasdaq Composite dropped 80.29 points, or 0.38 percent, to 21,098.29. Seven of the 11 major S&P 500 sectors ended the day in negative territory, with industrials and consumer discretionary stocks leading the declines. Real estate and utilities led the gainers by going up 1.70 percent and 1.17 percent, respectively. On the economic front, the U.S. Bureau of Labor Statistics reported that job openings held steady at 7.4 million in June, while hiring figures also showed little change. Earnings played a major role in Tuesday's market moves. Boeing beat expectations with its quarterly results, while lackluster reports from Spotify, Merck, and UnitedHealth dampened sentiment. Shares of UPS plunged 10.57 percent after the company missed earnings estimates and declined to issue forward guidance. On the upside, Corning jumped 11.86 percent, leading gainers in the S&P 500 after strong results. In the tech sector, most mega-cap stocks declined. Tesla and Apple each fell more than 1 percent, while Nvidia and Amazon also traded lower. Alphabet and Broadcom bucked the trend, both rising more than 1 percent. Investors are looking ahead to earnings from Microsoft and Meta, due after Wednesday's closing bell, with Apple and Amazon set to report Thursday. The Federal Reserve began its two-day policy meeting on Tuesday, with markets broadly expecting interest rates to remain unchanged at a range of 4.25 percent to 4.5 percent. "The market has had a strong run and is now in digestion mode. Some technical indicators suggest a pullback may be coming," said Jay Woods, chief global strategist at Freedom Capital Markets. "This is a pause, a period to focus on individual names driven by earnings, while the broader market watches how the Fed's narrative evolves ... Hopefully, we'll get some clarity after Wednesday's press conference."
Business Recorder
an hour ago
- Business
- Business Recorder
Wall Street swings to losses as earnings weigh
NEW YORK: The S&P 500 and the Nasdaq slipped from record highs on Tuesday as a series of downbeat earnings weighed on the indexes, while investors looked ahead to the US Federal Reserve's policy meeting later in the day. At 11:36 a.m. ET, the S&P 500 lost 14.45 points, or 0.23%, to 6,374.98, and the Nasdaq Composite lost 58.64 points, or 0.28%, to 21,119.59. The Dow Jones Industrial Average fell 198.93 points, or 0.44%, to 44,638.52, about 460 points short of its record peak. Quarterly results from key Dow components UnitedHealth and Boeing failed to impress investors. Health insurer UnitedHealth fell 5.1% after a disappointing profit forecast, while Boeing lost 3.7% despite reporting a smaller second-quarter loss. UnitedHealth's stock has lost nearly half its value from the beginning of 2025. On the day, the healthcare index lost 0.4%. Meanwhile, United Parcel Service became the latest victim of US President Donald Trump's sweeping tariffs as the stock tumbled 9.3% after the company reported lower-than-expected second-quarter profit. Similarly, Whirlpool sank 10.8% after the home appliances maker slashed its annual earnings forecast and dividend, citing tariff-centric pressures. The Dow Jones Transport Average dropped 2.1% to a one-week low. Meanwhile, consumer confidence in July increased more than expected to 97.2. In June, US job openings and hiring had decreased, pointing to a further slowdown in labor market activity. The week had started on firm footing after the US-EU trade deal that halved tariffs to 15% and boosted expectations of more agreements ahead of Trump's August 1 deadline. Trump has also floated a potential 'world tariff' of 15% to 20% for non-negotiating countries. Key negotiations between the US and China entered their second day in Stockholm as the world's two leading economies aim to resolve their trade conflict and possibly produce a 90-day extension to the tariff truce brokered in May. Meanwhile, India prepared for higher US tariffs — potentially as high as 25% — on some exports as it opts to hold the line on new trade concessions ahead of Washington's deadline, according to two Indian government sources. The International Monetary Fund was examining the details of the trade agreements the United States has struck in recent days to assess their economic impact. Earnings from tech heavyweights Meta, Microsoft, Amazon and Apple are scheduled later this week and could potentially steer Wall Street in the following days. 'For the Mag 7 names, it's going to be all about that CapEx spend - that AI spend continuing to be pretty robust... the market's going to take a lot of direction from that,' said Jack Janasiewicz, lead portfolio strategist at Natixis Investment Managers. The US central bank is set to begin its two-day policy meeting later in the day. While the Fed is expected to leave rates unchanged on Wednesday, traders will closely analyze policymakers' remarks to gauge the timing of future moves. According to the CME FedWatch tool, markets are pricing in about a 61.6% chance of a rate cut in September. Declining issues outnumbered advancers by a 1.08-to-1 ratio on the NYSE and by a 2.09-to-1 ratio on the Nasdaq. The S&P 500 posted 31 new 52-week highs and nine new lows, while the Nasdaq Composite recorded 67 new highs and 56 new lows.
Business Times
an hour ago
- Business
- Business Times
US: Stocks retreat ahead of Fed decision, big tech earnings
[NEW YORK] Wall Street stocks retreated on Tuesday as markets digested major merger announcements and monitored US-China trade talks ahead of big tech earnings later in the week. Representatives from Beijing and Washington signaled further talks were likely following a round of negotiations in Stockholm. But a top US trade official stressed that President Donald Trump would make any 'final call.' Meanwhile investors digested several significant earnings reports, as well as merger announcements in the rail and energy sectors ahead of major economic news catalysts later in the week. 'After reaching all time highs, markets are going to take a wait and see attitude,' said Art Hogan of B. Riley Wealth Management. The Dow Jones Industrial Average finished down 0.5 per cent at 44,632.99. The broad-based S&P 500 shed 0.3 per cent to 6,370.86, while the tech-rich Nasdaq Composite Index declined 0.4 per cent to 21,098.29. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Both the S&P 500 and Nasdaq had finished at records on Monday. Steve Sosnick of Interactive Brokers described Tuesday's activity as a 'little bit of position squaring ahead of a potentially very volatile few days.' Besides earnings from Apple, Facebook parent Meta and other tech giants, markets will absorb a Federal Reserve interest rate decision. The central bank is expected to keep rates unchanged, but could hint that an interest rate cut will be more likely in September. Trump has lambasted Fed Chair Jerome Powell for not cutting interest rates. The market will also receive key economic reports on the labor market, inflation and US growth. Among companies reporting earnings on Tuesday, Boeing dropped 4.3 per cent, UnitedHealth Group sank 7.4 per cent and Whirlpool dived 13.4 per cent Union Pacific announced it will be acquiring Norfolk Southern for US$85 billion, creating a transcontinental railroad intended to boost freight rail efficiency. Union Pacific fell 2.3 per cent while Norfolk Southern fell 3.0 per cent. Analysts expect the deal to encounter regulatory scrutiny. Oil services company Baker Hughes said it would acquire Chart Industries for US$13.6 billion, adding assets in natural gas, data centres and decarbonisation. Baker Hughes dropped 1.7 per cent while Chart surged 15.8 per cent. CyberArk Software surged 13.5 per cent following a report it was in talks to be acquired by Palo Alto Networks in a merger of cybersecurity ventures. Palo Alto fell 5.2 per cent. AFP
CNBC
an hour ago
- Business
- CNBC
Stock futures are little changed as investors analyze earnings, await Fed rate decision: Live updates
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., July 25, 2025. Jeenah Moon | Reuters S&P 500 futures are near flat Tuesday night, after the benchmark snapped a win streak that brought it to record highs, as investors analyzed earnings reports and awaited the Federal Reserve's interest rate decision. Futures tied to the broad index flickered near flat, as did Nasdaq 100 futures . Dow Jones Industrial Average futures lost 41 points, or 0.1%. Starbucks shares climbed more than 3% after the bell after the coffee chain posted stronger-than-expected revenue for the third fiscal quarter. On the other hand, Visa sank more than 2% despite quarterly results coming in better than what Wall Street expected. Tuesday night's action follows a losing day on the Street, marking the first session of the last seven where the S&P 500 did not close at an all-time high. The S&P 500 slid 0.3% in the session, while the Dow and Nasdaq Composite lost about 0.5% and 0.4%, respectively. Investors are awaiting the Federal Reserve's interest rate announcement Wednesday afternoon. Fed funds futures are pricing in a nearly 98% likelihood of the central bank keeping its key rate at a range of 4.25% to 4.5%, according to CME Group's FedWatch tool. "Despite increased political scrutiny, Fed Chair Jerome Powell continues to signal patience around any interest rate decision," said Jerry Tempelman, vice president of fixed income research at Mutual of America Capital Management. "Financial markets do not anticipate any change in monetary policy from the Federal Reserve until at least September." Following the decision, traders will turn to a press conference with Chair Jerome Powell for insights into the path of monetary policy. This comes as President Donald Trump and allies have tried to pressure Powell to bring the borrowing cost down. Before that, traders will monitor economic data on private payrolls, gross domestic product and pending home sales due in the morning. They'll also follow the continued stream of earnings reports. Etsy will provide its quarterly results before the bell on Wednesday, followed by Meta Platforms , Microsoft , Ford and Robinhood after the market closes. These are some of the stocks making notable moves in after-hour trading: Starbucks — The coffee chain's shares added 3% in extended trading after revenue for the fiscal third quarter came in higher than expected. Starbucks posted revenue of $9.46 billion, while LSEG consensus estimates called for $9.31 billion. Same-store sales fell for the sixth consecutive quarter, however. — The coffee chain's shares added 3% in extended trading after revenue for the fiscal third quarter came in higher than expected. Starbucks posted revenue of $9.46 billion, while LSEG consensus estimates called for $9.31 billion. Same-store sales fell for the sixth consecutive quarter, however. Visa — Shares fell 3%. Visa reaffirmed full-year 2025 guidance of low double-digit net revenue growth. Separately, the financial technology company beat expectations on the top and bottom lines in the fiscal third quarter. Visa posted adjusted earnings $2.98 per share on revenue of $10.17 billion, while analysts polled by LSEG forecast $2.85 per share and $9.84 billion in revenue. — Shares fell 3%. Visa reaffirmed full-year 2025 guidance of low double-digit net revenue growth. Separately, the financial technology company beat expectations on the top and bottom lines in the fiscal third quarter. Visa posted adjusted earnings $2.98 per share on revenue of $10.17 billion, while analysts polled by LSEG forecast $2.85 per share and $9.84 billion in revenue. Mondelez International — The manufacturer of Oreo cookies and Sour Patch Kids candy saw shares tumble nearly 3%. Mondelez reaffirmed its full-year guidance, calling for a 10% decline year over year in earnings per share on constant currency and organic revenue growth of about 5%. Separately, second-quarter results surpassed Wall Street estimates. Click here for the full story. — Alex Harring Stock futures tied to the Dow, S&P 500 and Nasdaq 100 were all little changed shortly after 6 p.m. ET. — Alex Harring
