Wall Street drifts as corporate profits pile higher along with uncertainty about Trump's trade war
NEW YORK (AP) — U.S. stocks are drifting in mixed trading Tuesday as stronger-than-expected profits keep piling higher for companies, while CEOs also say they’re unsure how long that can last because of uncertainty around President Donald Trump’s trade war.
The S&P 500 was 0.3% lower in early trading, coming off a five-day winning streak. The Dow Jones Industrial Average was up 88 points, or 0.2%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.5% lower.
UPS, the world’s largest package delivery company, was swinging between gains and losses after it reported a stronger profit for the first three months of 2025 than analysts expected. Because it sends packages all around the world, UPS can offer a window into how the global economy is doing.
But UPS also said it wasn’t updating its financial forecasts previously given for 2025 because of “the current macro-economic uncertainty.” It also said it expects to cut about 20,000 jobs and close 73 buildings this year as part of a cost-cutting effort that CEO Carol Tomé said “could not be timelier.” Its stock was most recently up 0.4%
Investors fear Trump’s tariffs could bring a recession if left unaltered because they could freeze global trade and send prices higher for all kinds of products. But Trump has also been rolling them out in an on-again-off-again fashion, which by itself could throw into disarray the long-term plans for spending and investment by businesses and households.
The latest zigzag may be arriving for the U.S. auto industry after White House Press Secretary Karoline Leavitt said Trump will sign an executive order Tuesday relaxing some of his 25% auto tariffs to help domestic carmaking.
General Motors sank 1.9% even though it reported a stronger profit for the latest quarter than analysts expected. The company rescheduled a conference call with investors to discuss its results and forecasts for 2025 to Thursday because of “recent reports regarding updates to trade policy.”
On the winning side of Wall Street was cruise operator Royal Caribbean, which not only reported a stronger profit for the latest quarter than analysts expected but also raised its forecast for results over the full year. Part of that was due to anticipation for lower fuel costs. Oil prices have been swinging recently because of uncertainty about how much fuel the global economy will burn amid the trade war.
CEO Jason Liberty echoed what many of his peers have been saying lately: “As we navigate the complexities of the current macroeconomic landscape, we remain focused on what we can control.” Royal Caribbean rose 1.1%.
In the bond market, Treasury yields were holding relatively steady. The yield on the 10-year Treasury eased to to 4.20% from 4.23% late Monday.
Yields have largely been sinking since an unsettling, unusual spurt higher earlier this month rattled both Wall Street and the U.S. government. That rise had suggested investors worldwide may have been losing faith in the U.S. bond market’s reputation as a safe place to park cash.
In stock markets abroad, indexes were mixed amid mostly modest moves across Europe and Asia.
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AP Business Writer Elaine Kurtenbach contributed.