Stocks remained largely unchanged during early trading on Tuesday as investors pay attention to corporate revenues and the latest tariff news.
Dow Jones Industry Average rose 25 points, while the S&P 500 and Nasdaq Composite hugged the flatline at 0.03% and -0.13%, respectively. Tech stocks previously shoved the latter push into Monday's sixth winning session.
Wall Street is a response to corporate revenues, and General Motors' results were not impressive. The automaker reported a 32% decline in core profits. The company announced its results before the market opened on Tuesday, showing a $1.1 billion slash against second-quarter profits amid reported impacts of tariffs.
GM's stock fell as investors responded to news that tariffs were likely to have a greater impact this quarter. Investors are awaiting the results of the Alphabet and Tesla on Wednesday.
Elsewhere, Bitcoin (BTC) showed resilience as prices returned above 119K following capital turnover. The oil and gold hovered flat.
Meanwhile, the US Treasury yield in 2010 reached 4.36%, while the two-year Treasury yield was covered by 3.84%, and the 30-year yield reached 4.93% on one basis point.
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US-China Trade Agreement
The stock has responded decisively to headwind tariffs since the first dump at the beginning of the year.
Investors may consider comments by U.S. Treasury Secretary Scott Bescent that the US-China trade agreement could be extended as the August 12 deadline approaches. Bescent hinted at this while talking to Fox Business on Tuesday, noting that he will meet his Chinese counterpart in Sweden next week.
The two trading partners agreed to a 90-day suspension on most heavy tariffs in May to support the stock. The August 1 deadline for customs duties on other major US trading partners is still in place.
The eyes of Federal Reserve Chairman Jerome Powell
The overall U.S. Treasury outlook for yields is delicately poised ahead of the morning speech by Federal Reserve Chair Jerome Powell, and the Fed's chair is increasingly under pressure to step down.
U.S. Treasury Secretary Scott Bescent says there's no need for Powell to step down, but the central bank has the opportunity to tackle his legacy as issues such as $2.5 billion are being scrutinized.
Trump also shows that he will not fire Powell (those actions will likely lead to legal challenges). Still, investors are keen to see the central bank chief mentioning tariffs and the US economy ahead of the upcoming Federal Reserve meeting on July 29th.
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