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Financial Markets 04/29 09:44
NEW YORK (AP) -- U.S. stocks are drifting in mixed trading Tuesday as
stronger-than-expected profits keep piling higher for companies, while CEOs
also say they're unsure how long that can last because of uncertainty around
President Donald Trump's trade war.
The S&P 500 was 0.3% lower in early trading, coming off a five-day winning
streak. The Dow Jones Industrial Average was up 88 points, or 0.2%, as of 9:35
a.m. Eastern time, and the Nasdaq composite was 0.5% lower.
UPS, the world's largest package delivery company, was swinging between
gains and losses after it reported a stronger profit for the first three months
of 2025 than analysts expected. Because it sends packages all around the world,
UPS can offer a window into how the global economy is doing.
But UPS also said it wasn't updating its financial forecasts previously
given for 2025 because of "the current macro-economic uncertainty." It also
said it expects to cut about 20,000 jobs and close 73 buildings this year as
part of a cost-cutting effort that CEO Carol Tom said "could not be timelier."
Its stock was most recently up 0.4%
Investors fear Trump's tariffs could bring a recession if left unaltered
because they could freeze global trade and send prices higher for all kinds of
products. But Trump has also been rolling them out in an on-again-off-again
fashion, which by itself could throw into disarray the long-term plans for
spending and investment by businesses and households.
The latest zigzag may be arriving for the U.S. auto industry after White
House Press Secretary Karoline Leavitt said Trump will sign an executive order
Tuesday relaxing some of his 25% auto tariffs to help domestic carmaking.
General Motors sank 1.9% even though it reported a stronger profit for the
latest quarter than analysts expected. The company rescheduled a conference
call with investors to discuss its results and forecasts for 2025 to Thursday
because of "recent reports regarding updates to trade policy."
On the winning side of Wall Street was cruise operator Royal Caribbean,
which not only reported a stronger profit for the latest quarter than analysts
expected but also raised its forecast for results over the full year. Part of
that was due to anticipation for lower fuel costs. Oil prices have been
swinging recently because of uncertainty about how much fuel the global economy
will burn amid the trade war.
CEO Jason Liberty echoed what many of his peers have been saying lately: "As
we navigate the complexities of the current macroeconomic landscape, we remain
focused on what we can control." Royal Caribbean rose 1.1%.
In the bond market, Treasury yields were holding relatively steady. The
yield on the 10-year Treasury eased to to 4.20% from 4.23% late Monday.
Yields have largely been sinking since an unsettling, unusual spurt higher
earlier this month rattled both Wall Street and the U.S. government. That rise
had suggested investors worldwide may have been losing faith in the U.S. bond
market's reputation as a safe place to park cash.
In stock markets abroad, indexes were mixed amid mostly modest moves across
Europe and Asia.
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AP Business Writer Elaine Kurtenbach contributed.
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