Stan Choe, AP Business Writer
NEW YORK (AP) – U.S. stocks drifted in mixed trading Tuesday as stronger than expected profits continue to rise in companies, but the CEO also says he’s not sure how long it will last because of President Donald Trump’s uncertainty about the trade war.
The S&P 500 rose 0.1% in afternoon trading, leaving it away from a five-day winning streak. The Dow Jones industrial average rose 159 points (0.4%) as of 12:52 pm east time, with the Nasdaq Composite down 0.1%.
Like the broader market, UPS stocks swayed between losses and profits at the start of trading day after analysts reported stronger profits than expected in the first three months of 2025. As the world’s largest package delivery company, UPS can provide a window into the way the global economy is doing.
However, UPS also said it has not updated its previously given financial forecasts in 2025 due to “current macroeconomic uncertainty.” He also said that it is expected to cut around 20,000 jobs and close 73 buildings this year as part of a cost-cutting effort that CEO Carol Tome said “can’t become a timeline.” That inventory fell by 0.8%.
Investors fear that Trump’s tariffs could lead to a recession if left at a disadvantage, as they could freeze global trade and send prices for all kinds of products. The unconventional rollout itself can also disrupt long-term plans for spending and investment by businesses and households on their own.
U.S. households have become far more pessimistic due to tariffs, with expectations for income, business and job market conditions falling to their lowest levels since 2011, typically well below levels of recession, according to a report from the conference committee on Tuesday.
US Treasury Secretary Scott Bescent said such economic uncertainty is a tool Trump can use when negotiating tariffs and trade deals. “President Trump will create what I call strategic uncertainty in negotiations,” he told White House reporters.
The latest Zigzag could have arrived in the US auto industry after White House press chief Karoline Leavitt said on Tuesday he would sign an executive order to ease some of the 25% car rates.
Despite this, General Motors sank 1.4% despite reporting profits in the latest quarter than analysts expected. The company rescheduled a conference call with investors to discuss results and forecasts from 2025 to Thursday for a “recent report on trade policy updates.”
Jetblue Airways bouncing between losses and profits after CEO Joanna Geraghty said airlines were pushing their full-year financial forecasts for a year, taking into account “macroeconomic uncertainty.” The airline also produced stronger profits than expected in the recent quarter, with its shares increasing by 2.8% recently.
Honeywell International raised 4.6% after reporting profits and revenues for the most recent quarter than analysts expected. Perhaps more importantly, investors have also raised their year-round earnings forecasts.
“We haven’t seen that in the results yet, but we recognize that we are facing an uncertain global demand environment for the rest of 2025, and we will work tirelessly to leverage all the tools available to us and provide it to our customers and shareholders,” said CEO Vimal Kapur.
Sherwin-Williams rose 5.1% after the paint and coating company beat analysts’ profit expectations in the first quarter. CEO Heidi Petz said he hopes some of his customers will continue to maintain well until later this year, but said her company has obtained most of its raw materials from the region where they manufacture. It could help to blunt any possible blows from tariffs.
Coca-Cola reported better revenues than expected in the first quarter, stating that the tariff impact on its business was “manageable” and was etched into a higher ticking. Beverage Giant updated some of its financial forecasts for the year, but left its guidance on key fundamental measures of revenue growth intact. That inventory added 0.7%
In the bond market, the Treasury yields fell. Treasury yields for 2010 fell from 4.23% to 4.17% late Monday.
Not only did the consumer trust report become weaker than expected, but it also updated the number of jobs that employers had advertised at the end of March. Such weak forecast data could ultimately encourage the Federal Reserve to resume interest rate cuts to boost the economy.
Yet yields have been sinking for the majority since earlier this month, that unsettling and unusual eruption rattled both Wall Street and the US government. That rise suggested that investors around the world may have lost faith in the reputation of the US bond market as a safe place to park their cash.
In overseas stock markets, indexes were mixed amid almost modest movements in Europe and Asia.
AP Business Writer Elaine Kurtenbach contributed.
Original issue: April 29, 2025, 7:53am EDT
