U.S. stocks were trading in mixed fashion on Tuesday as a stream of stronger-than-expected corporate earnings continued, while concerns about the future lingered due to uncertainty surrounding President Donald Trump’s trade policies.
The S&P 500 was up 0.1% in the afternoon, snapping a five-day winning streak. The Dow Jones Industrial Average gained 159 points, or 0.4%, by 12:52 p.m. Eastern, while the Nasdaq slipped 0.1%.
UPS shares fluctuated between gains and losses after the shipping giant posted earnings that exceeded Wall Street expectations for the first quarter of 2025. As a global shipping leader, UPS is often seen as a bellwether for global economic activity. Still, the company refrained from updating its 2025 financial outlook, citing ongoing macroeconomic uncertainty. UPS also announced plans to cut 20,000 jobs and close 73 facilities this year as part of a cost-cutting effort CEO Carol Tomé described as “timely.” Its stock was down 0.8%.
Investors remain wary that Trump’s tariff strategies could trigger a recession, potentially disrupting global trade and pushing up prices. The unpredictable nature of Trump’s trade decisions is also complicating long-term investment planning for businesses and consumers.
Consumer sentiment is taking a hit as well. A report from the Conference Board revealed that U.S. household expectations around income, business conditions, and the job market have dropped to their lowest level since 2011—well below levels that often signal an approaching recession.
Treasury Secretary Scott Bessent suggested the economic uncertainty is part of Trump’s broader negotiation strategy, calling it “strategic uncertainty” during a briefing at the White House.
The auto industry may face fresh volatility, as White House Press Secretary Karoline Leavitt announced Trump would be signing an executive order easing some 25% tariffs on imported vehicles.
Even so, General Motors shares declined 1.4% despite surpassing profit expectations for the quarter. The company postponed its investor call until Thursday, citing recent developments in trade policy.
JetBlue Airways shares also seesawed throughout the day. The airline withdrew its full-year forecast, citing economic uncertainty, although it too beat earnings expectations. Its stock was recently up 2.8%.
Honeywell International climbed 4.6% after exceeding profit and revenue estimates and raising its full-year earnings forecast. CEO Vimal Kapur acknowledged the uncertainty in global demand for the rest of 2025 but emphasized the company’s commitment to meeting expectations.
Sherwin-Williams rose 5.1% after a strong quarterly report. CEO Heidi Petz said that while demand from some customers is expected to remain soft through the year, the company’s reliance on domestic raw materials helps shield it from tariff-related disruptions.
Coca-Cola shares also edged higher after the company beat earnings expectations. The beverage maker stated that tariff impacts should be “manageable.” Coca-Cola updated several financial metrics but left a key revenue growth forecast unchanged, with its stock up 0.7%.
In the bond market, yields declined as investor concerns deepened. The 10-year Treasury yield fell to 4.17%, down from 4.23% on Monday. Weaker-than-expected consumer confidence and a soft job openings report added to speculation that the Federal Reserve might eventually resume cutting interest rates to support the economy.
Treasury yields had previously spiked in a way that unsettled both Wall Street and government markets, raising concerns about global confidence in U.S. bonds as a safe investment.
Overseas, stock indexes across Europe and Asia showed modest and mixed movements.
