U.S. Stocks Edge Higher Amid Mixed Earnings and Trade Uncertainty

U.S. stock markets posted modest gains on Tuesday, with the S&P 500 closing up 0.1% at a record high and the Dow Jones Industrial Average rising 179 points, or 0.4%. The Nasdaq composite slipped 0.4% from its own recent record. The gains followed a series of mixed earnings reports from major companies and updates on the impact of tariffs.

General Motors shares fell 8.1% despite reporting stronger-than-expected profits for the spring quarter. The company said it anticipates a $4 billion to $5 billion impact from tariffs through 2025 and expects more significant effects in the current quarter. GM noted it aims to offset about 30% of these costs.

Homebuilders D.R. Horton and PulteGroup saw their stocks surge by 17% and 11.5% respectively after reporting better-than-expected profits, though both companies highlighted ongoing challenges for homebuyers, including higher mortgage rates and economic uncertainty.

Genuine Parts raised its quarterly profit above analyst expectations but lowered its full-year outlook to account for existing U.S. tariffs and updated business conditions. RTX reduced its 2025 profit forecast while increasing its revenue outlook, citing "our current assessment of the impact of tariffs," according to CEO Chris Calio. Coca-Cola's shares dipped 0.6% despite exceeding profit estimates, as higher prices offset a decline in case sales.

In trade developments, President Donald Trump announced a new agreement with the Philippines to slightly lower U.S. tariffs for Philippine goods. Many of the administration's proposed tariffs remain on hold, with the next major deadline set for August 1. Negotiations with other countries continue in an effort to reduce tariff proposals.

In the bond market, Treasury yields declined as investors anticipate the Federal Reserve will delay further interest rate cuts until at least September. Fed Chair Jerome Powell has stated he wants more data on the effects of tariffs before making decisions on rates, despite criticism from President Trump, who has called for more immediate cuts.

Internationally, Japan's Nikkei 225 index fell 0.1% after initial gains, following the ruling coalition's loss of its upper house majority in Sunday's election. Analysts noted that political uncertainty remains, with little progress reported in U.S.-Japan trade talks ahead of the August tariff deadline. Other Asian and European markets ended the day mixed.