Wall Street wavers amid mixed earnings, crude slides as trade deadline looms
The S&P 500 was modestly lower while easing tech shares (.SPLRCT), opens new tab dragged the Nasdaq to a steeper loss. The blue-chip Dow held on to nominal gains.
Gold extended its gain in opposition to the softening dollar and U.S. Treasury yields eased for the third straight session.
"(Investors are) looking for additional catalysts and you're seeing some cautious comments coming out of companies," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. "They're hearing mixed guidance when it comes to all this uncertainty revolving around tariffs and the direction things are heading in."
Second-quarter earnings season has hit full-stride, with nearly one-fifth of the companies in the S&P 500 having reported. Of those, 79% have beaten analyst expectations, according to LSEG data.
Analysts now expect year-on-year S&P 500 earnings growth of 7.0%, on aggregate, a sizable improvement over the 5.8% growth predicted as of July 1, per LSEG.
Still, the effects of trade war have begun seeping into corporate results. General Motors' GM.N, opens new tab second-quarter core profit slid by 32% as steep tariff costs took a $1.1 billion bite from its bottom line.
Prospects of a U.S.-European Union trade deal appeared to be fading as Washington's August 1 deadline loomed, prompting EU members to ramp up possible "anti-coercion" retaliatory measures.
U.S. Treasury Secretary Scott Bessent said on Tuesday he would meet with his Chinese counterpart to discuss delaying the trade talks deadline again, as the world's two largest economies wrestle with the flow of technology and rare earth materials.
"Trump seems to desperately want to make deals if they just come to the table and negotiate," said Pavlik, adding that U.S. trading partners "seem to resent being forced into a deal so they're pushing back."
"And it's all been sort of artificially been created." Pavlik added. "The President could have addressed this differently and gotten a much smoother outcome, but he works like a bull in a China shop."
The Dow Jones Industrial Average (.DJI), opens new tab rose 38.96 points, or 0.09%, to 44,362.03, the S&P 500 (.SPX), opens new tab fell 6.29 points, or 0.10%, to 6,299.49 and the Nasdaq Composite (.IXIC), opens new tab fell 89.48 points, or 0.43%, to 20,883.37.
MSCI's gauge of stocks across the globe (.MIWD00000PUS), opens new tab fell 0.80 points, or 0.08%, to 928.84.
The pan-European STOXX 600 (.STOXX), opens new tab index fell 0.47%, while Europe's broad FTSEurofirst 300 index (.FTEU3), opens new tab fell 9.88 points, or 0.47%
Emerging market stocks (.MSCIEF), opens new tab fell 3.99 points, or 0.32%, to 1,249.49. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab closed lower by 0.24%, to 657.10, while Japan's Nikkei (.N225), opens new tab fell 44.19 points, or 0.11%, to 39,774.92.
The dollar continued to edge lower amid a subdued currency market as investors awaited any sign of progress in trade talks ahead of the August 1 deadline.
The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.28% to 97.57, with the euro up 0.22% at $1.1722.
Bitcoin resumed its upward climb.
In cryptocurrencies, bitcoin gained 1.82% to $119,134.52. Ethereum declined 1.4% to $3,706.19.
U.S. Treasury yields appeared set to notch a third straight day of declines as the market took a breather on the heels of Monday's rally.
The yield on benchmark U.S. 10-year notes fell 3.2 basis points to 4.338%, from 4.37% late on Monday.
The 30-year bond yield fell 3.5 basis points to 4.902% from 4.937% late on Monday.
The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 1.9 basis points to 3.833%, from 3.852% late on Monday.
U.S. crude fell 1.56% to $66.15 a barrel and Brent fell to $68.26 per barrel, down 1.37% on the day.
Spot gold rose 0.9% to $3,425.89 an ounce. U.S. gold futures rose 0.58% to $3,421.70 an ounce.
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South Wales Argus
26 minutes ago
- South Wales Argus
Trump to land in Scotland on Friday for start of five-day private trip
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Glasgow Times
26 minutes ago
- Glasgow Times
Trump to land in Scotland on Friday for start of five-day private trip
The US president is expected to arrive at Prestwick Airport in the evening, before heading over to his Turnberry golf course in South Ayrshire. He is then expected to head over to his Menie golf course in Aberdeenshire before opening up a new course dedicated to his Scottish mother, who grew up on the Isle of Lewis. He will leave the country at some point on Tuesday. Donald Trump last visited Turnberry in 2023 (Andrew Milligan/PA) His presence will result in a significant operation from Police Scotland and thousands of officers, who are expected to deal with mass protests around his golf courses and major Scottish cities. Mr Trump will be greeted by Scottish Secretary Ian Murray when he lands, with the minister pledging to give the American leader a 'warm welcome'. He will meet with Prime Minister Sir Keir Starmer during his stay when the pair will discuss the UK-US trade deal. The US president will also meet with First Minister John Swinney. The SNP leader previously said he would have the opportunity to raise various issues with Mr Trump, including tariffs, Gaza and Ukraine. Donald Trump and Sir Keir Starmer will meet during the president's trip to Scotland (Suzanne Plunkett/PA) Speaking ahead of his arrival, Mr Swinney said the global attention the visit will receive provides Scotland with an opportunity to respectfully demonstrate the principles of freedom and justice for all, while also promoting Scotland's tourism sector and economic investment potential. He said: 'Scotland shares a strong friendship with the United States that goes back centuries. 'That partnership remains steadfast through economic, cultural and ancestral links – including of course, with the President himself. 'As we welcome the President of the United States, Scotland will be showcased on the world stage. 'This provides Scotland with a platform to make its voice heard on the issues that matter, including war and peace, justice and democracy. 'It also includes the millions of Americans – many of them potential future tourists or investors in Scotland – who will watch their elected President as he visits our country. 'As First Minister it is my responsibility to advance our interests, raise global and humanitarian issues of significant importance, including the unimaginable suffering we are witnessing in Gaza, and ensure Scotland's voice is heard at the highest levels of government across the world. 'That is exactly what I will do when I meet with President Trump during his time in Scotland.' First Minister John Swinney will meet Donald Trump during his visit to Scotland (Steve Welsh/PA) The SNP leader said Scotland is a 'proud democratic nation' that 'stands firm on the principles of equality and freedom for all, and a society that stands up for a fair and just world'. Ahead of protests expected around Scotland, he said people had a right to 'peaceful demonstration', adding that 'everyone has the democratic right to protect and express their views in a peaceful, and democratic manner'. 'That is right and proper,' he added. 'I am confident the vast majority of people protesting will do Scotland proud and demonstrate as they should – peacefully and lawfully. 'I am also confident that Scotland's police service can handle the challenge of keeping all our communities safe and, as they must, in maintaining the appropriate security any US President requires. 'This weekend is a landmark moment in our relationship with the United States, and I am certain it will be remembered for Scotland showing the world the very best of itself.'
Reuters
26 minutes ago
- Reuters
Core inflation in Japan's capital stays above BOJ target in July
TOKYO, July 25 (Reuters) - Core consumer inflation in Japan's capital stayed well above the central bank's 2% target in July, data showed on Friday, adding to renewed market expectations for another interest rate hike this year. The data will be among factors the Bank of Japan will scrutinise at its next rate review on July 30-31, when the board is expected to revise up this fiscal year's inflation forecast in a quarterly review of its projections. The Tokyo consumer price index (CPI), which excludes volatile fresh food costs, rose 2.9% in July from a year earlier, government data showed, slightly below a median market forecast for a 3.0% increase. It followed a 3.1% rise in June. A separate index for Tokyo that strips away both fresh food and fuel costs - closely watched by the BOJ as a measure of domestic demand-driven prices - rose 3.1% in July from a year earlier after a 3.1% gain in June, the data showed. The BOJ exited a decade-long, radical stimulus programme last year and raised short-term interest rates to 0.5% in January on the view Japan was on the cusp of sustainably hitting its 2% inflation target. While the central bank has signalled readiness to raise rates further, the economic impact of higher U.S. tariffs forced it to cut its growth forecasts in May and complicated decisions around the timing of the next rate increase. But U.S. President Donald Trump's surprise announcement on Wednesday of a trade deal with Japan has diminished uncertainty over the country's economic outlook, prodding some investors to renew their bets on another rate hike by the end of this year. Hours after the announcement, BOJ Deputy Governor Shinichi Uchida said the deal would reduce uncertainty and heighten the chance of Japan durably hitting the bank's inflation target. A Reuters poll, taken before the trade deal announcement, showed a majority of economists expect the BOJ to raise its key interest rate again by year-end, though most expect the bank to stand pat at this month's meeting.
