Wall Street opens mixed amid focus on trade talks
Traders on Wall Street have all but ruled out a cut in interest rates by the central bank next week. (AP PHOTO) Credit: AAP
Wall Street is struggling for direction as investors weigh signs of progress in US trade talks and peruse a spate of second-quarter company earnings, some of which showed a hit from President Donald Trump's tariff policies.
In early trading on Tuesday, the Dow Jones Industrial Average rose 68.00 points, or 0.16 per cent, to 44,393.01, the S&P 500 gained 5.04 points, or 0.08 per cent, to 6,310.64, and the Nasdaq Composite lost 19.88 points, or 0.09 per cent, to 20,954.29.
Tariffs have started to take a bite out of Wall Street giants.
General Motors had its second-quarter profit skid 32 per cent to $US3 billion ($A4.6 billion), with the car maker blaming hefty tariff costs for carving out $US1.1 billion from its results.
The company's shares lost 6.5 per cent while peer Ford also dipped 1.4 per cent.
"Everyone's watching GM very closely and the numbers did disappoint, and specifically related to tariffs," said Mark Malek, chief investment officer at Muriel Siebert.
"The fact that they (GM) did come out and say that there's going to be a forecast based on increases in tariffs is something that is going to play out throughout the day."
RTX slashed its 2025 profit outlook after taking a direct hit from Trump's tariff war, sending its shares down 3.9 per cent.
Lockheed Martin did not fare much better - its second-quarter profit nosedived nearly 80 per cent after booking a hefty $US1.6 billion pre-tax loss.
Yet, despite the trade turbulence, the robust US economy has powered major indexes to fresh all-time highs.
Treasury Secretary Scott Bessent is set to meet his Chinese counterpart next week, potentially discussing an extension to the August 12 deadline set for tariffs on China.
With just over a week before the August 1 deadline for most US trading partners, Bessent stressed that the administration was focused on striking high-quality trade deals not just quick ones.
Meanwhile, negotiations stalled with optimism for a breakthrough deal with India waning, according to Indian government officials, and as the European Union weighed new countermeasures against the US.
Still, a slew of positive earnings surprises has kept markets near record territory.
Analysts expect S&P 500 companies to report a healthy 6.7 per cent jump in second-quarter profits, with Big Tech leading the charge, data compiled by LSEG showed.
Investors piled into tech titans on Monday, with Google-parent Alphabet powering Wall Street gains ahead of its results.
The company is scheduled to kick off earnings for the "Magnificent Seven" megacaps along with Tesla on Wednesday.
Tesla rose 0.1 per cent on Tuesday.
The healthcare sector jumped 1.3 per cent to lead sectoral gains after falling for the last three sessions.
Meanwhile, Philip Morris fell 7.5 per cent after reporting second-quarter revenue behind expectations while Coca-Cola slipped 1.0 per cent despite beating quarterly profit estimates.
The stocks dragged the consumer sector to the bottom.
After last week's mixed economic cues, traders have all but ruled out an interest-rate cut next week.
They are pricing in a 58 per cent chance of a reduction in September, according to the CME's FedWatch tool.
Advancing issues outnumbered decliners by a 2.21-to-1 ratio on the NYSE and by a 1.65-to-1 ratio on the Nasdaq.
The S&P 500 posted seven new 52-week highs and no new lows while the Nasdaq Composite recorded 25 new highs and 22 new lows.
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But GM had been more aggressive than many brands in phasing out combustion-powered vehicles in favour of EVs. ABOVE: American Cadillac XT5 and (new) Chinese XT5 For example, the Chevrolet Blazer and Cadillac XT4, XT5 and XT6 crossover SUVs were all being phased out in favour of electric replacements – the Blazer EV, Optiq, Lyriq and Vistiq, respectively. Likewise, the Cadillac CT4 and CT5 sedans were expected to be replaced by one or two electric sedans, while the Chevrolet Malibu sedan has been axed outright. While none of these combustion-powered vehicles top the sales charts in their respective segments, many have been strong sellers at one point or another in their run. However, in June, GM announced it would add production of the combustion-powered Blazer to its Spring Hill, Tennessee plant in 2027 – a somewhat odd move, given the now six-year-old vehicle was set to be phased out. ABOVE: Chevrolet Blazer and Blazer EV Now, GM Authority reports it'll be a next-generation Blazer being manufactured in Spring Hill. Whether this means the new second-generation XT5 sold in China – previously slated to be a Chinese-market exclusive vehicle – will be offered in the US remains to be seen. It's not just the new XT5 that's exclusive to China. GM has developed a handful of new-generation combustion-powered vehicles for China that it hasn't offered in its home market. That includes the Cadillac GT4 and second-generation CT6. However, GM has struggled in China of late as resurgent domestic brands offering increasingly sophisticated products have eaten away both at its market share and that of many other foreign brands. It's now losing money there, despite the Chinese market once being a cash cow. ABOVE: Cadillac Lyriq With GM having reduced its global footprint through the sale of Opel/Vauxhall and a large-scale (if not complete) withdrawal from right-hand drive production that spelled the end of Holden, among other strategic moves, its home market has now become even more important. And despite EV sales continuing to grow in the US, the world's second-largest new-car market, there's still healthy demand for combustion-powered vehicles. GM has been pulling back somewhat from its previous bold EV goals. For example, it confirmed this year its Orion Assembly Plant in Michigan that was earmarked for EV production will now produce combustion-powered vehicles, while it will also introduce plug-in hybrids – technology it was previously planning to skip over. However, it's investing in new battery developments and plans to introduce a new, more affordable EV as a successor to its defunct Chevrolet Bolt, indicating it remains committed to EVs. It now offers multiple EVs across its Cadillac, Chevrolet and GMC brands, with electric Buicks also offered in China. Content originally sourced from: General Motors was increasingly going down the path of having V8-powered full-size pickups and SUVs, but using electric power for almost everything else. Its Buick and Cadillac brands, for example, had goals of going electric-only by 2030, while myriad combustion-powered models were being phased out. However, GM Authority reports the American giant is now putting new combustion-powered vehicles into development. It's also reportedly evaluating new variants of existing combustion-powered vehicles – something that could see it introduce, for example, performance-focused pickups to take on Ford's Raptor models. CarExpert can save you thousands on a new car. Click here to get a great deal. ABOVE: Chevrolet Silverado ZR2 It's unclear what new combustion-powered models GM may develop, though it currently doesn't have a unibody (car-based) ute to rival the Ford Maverick and no longer has a pony car to rival the Ford Mustang (following the axing of the Chevrolet Camaro). It also doesn't have a body-on-frame off-roader smaller than its Chevrolet Tahoe/GMC Yukon to take on the Toyota 4Runner and LandCruiser 250 Series (sold as the Prado here), apart from the ageing Chevrolet Trailblazer in Latin America. The change in strategy comes as fuel prices remain low in the US, while emissions regulations have been softened under the Trump administration. Of course, GM still has a bevy of electric vehicles (EVs) and is crowing about its Chevrolet brand being the second biggest seller of EVs in the US market. But GM had been more aggressive than many brands in phasing out combustion-powered vehicles in favour of EVs. ABOVE: American Cadillac XT5 and (new) Chinese XT5 For example, the Chevrolet Blazer and Cadillac XT4, XT5 and XT6 crossover SUVs were all being phased out in favour of electric replacements – the Blazer EV, Optiq, Lyriq and Vistiq, respectively. Likewise, the Cadillac CT4 and CT5 sedans were expected to be replaced by one or two electric sedans, while the Chevrolet Malibu sedan has been axed outright. While none of these combustion-powered vehicles top the sales charts in their respective segments, many have been strong sellers at one point or another in their run. However, in June, GM announced it would add production of the combustion-powered Blazer to its Spring Hill, Tennessee plant in 2027 – a somewhat odd move, given the now six-year-old vehicle was set to be phased out. ABOVE: Chevrolet Blazer and Blazer EV Now, GM Authority reports it'll be a next-generation Blazer being manufactured in Spring Hill. Whether this means the new second-generation XT5 sold in China – previously slated to be a Chinese-market exclusive vehicle – will be offered in the US remains to be seen. It's not just the new XT5 that's exclusive to China. GM has developed a handful of new-generation combustion-powered vehicles for China that it hasn't offered in its home market. That includes the Cadillac GT4 and second-generation CT6. However, GM has struggled in China of late as resurgent domestic brands offering increasingly sophisticated products have eaten away both at its market share and that of many other foreign brands. It's now losing money there, despite the Chinese market once being a cash cow. ABOVE: Cadillac Lyriq With GM having reduced its global footprint through the sale of Opel/Vauxhall and a large-scale (if not complete) withdrawal from right-hand drive production that spelled the end of Holden, among other strategic moves, its home market has now become even more important. And despite EV sales continuing to grow in the US, the world's second-largest new-car market, there's still healthy demand for combustion-powered vehicles. GM has been pulling back somewhat from its previous bold EV goals. For example, it confirmed this year its Orion Assembly Plant in Michigan that was earmarked for EV production will now produce combustion-powered vehicles, while it will also introduce plug-in hybrids – technology it was previously planning to skip over. However, it's investing in new battery developments and plans to introduce a new, more affordable EV as a successor to its defunct Chevrolet Bolt, indicating it remains committed to EVs. It now offers multiple EVs across its Cadillac, Chevrolet and GMC brands, with electric Buicks also offered in China. Content originally sourced from:
Perth Now
2 hours ago
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