By Business Writer Stancho AP
NEW YORK (AP) — US stocks are drifting quietly back into trading on Friday following their June holiday.
The S&P 500 fell 0.2% in noon trading after flipping between modest profits and losses in the morning. The Dow Jones industrial average had risen 45 points (0.1%) as of 11am. The Eastern Time and the Nasdaq Composite were 0.6% lower.
Treasury yields have been relatively stable in the bond market after President Donald Trump said he would decide within two weeks whether US troops will be directly involved in the fight against Israel and Iran. This window offers the possibility of a negotiated reconciliation against Iran’s nuclear program, which could avoid an increase in combat.
The war sent yo-yo crude oil prices due to the rising and decline of fear that it could disrupt the global trends of crudeness. Iran is a major producer of oil, and also sits in the narrow straits of Hormuz, where many of the world’s rough litter passes through.
“We’re all waiting for pins and needles. We see what happens in the Israeli-Iran situation.” “Those types of situations can highlight the market, but in many cases the best way to manage that stress is to get over it and not try to trade.”
On Wall Street, Kroger rose 8.3% after grocery stores reported higher profits in the most recent quarter than Wall Street had predicted. It also raised forecasts for the scale underlying full year revenue. Chief Financial Officer David Kennerley said he is seeing positive momentum, but still sees the overall economic environment as uncertain.
Carmax rose 6% after car dealers reported higher profits in the recent quarter than analysts expected. The company said it sold nearly 6% of its used cars in a quarter than a year ago.
On the losing end of Wall Street was the gun manufacturer Smith & Wesson brand. It fell 19.5% after reporting profits and revenues for the latest quarter, when analysts’ expectations fell.
Chief Financial Officer Deena McPherson said “uncertainty due to sustained inflation, high interest rates and tariff concerns” is harming firearm sales, and the company expects demand for the upcoming fiscal year will be similar to the past year, depending on how inflation and how Trump’s tariffs unfold.
Companies adjust or withdraw their annual financial forecasts due to all the uncertainty that tariffs bring to their customers and suppliers. Everyone is waiting to see how much tariffs will ultimately grow.
It’s not just about corporate America. The Federal Reserve has put on key interest rates this year, and such decisions were the latest decision earlier this week.
In the bond market, the Treasury is making higher profits. The 2010 Treasury yield rose to 4.41% from 4.38% on Wednesday. The two-year yields have more closely tracked expectations the Fed will do, dropping from 3.94% to 3.93%.
In overseas stock markets, indexes were mixed across Europe and Asia.
Tokyo’s Nikkei 225 index slipped 0.2% after Japan reported that core inflation rates, excluding volatile food prices, rose to 3.7% in May, increasing the challenges for Prime Minister Isgar’s government and central banks.
AP writer Teresa Cerojano contributed.
Original issue: June 20, 2025 9:40am EDT
