U.S. stock markets are witnessing mixed futures following a five-session rally of the Dow Jones Industrial Average and S&P 500, driven by the latest round of corporate earnings reports. A prominent point of concern is auto tariffs, influencing companies like General Motors (GM), which reported strong first-quarter results exceeding expectations but postponed any updates on its full-year outlook, reflecting investor worries about trade policies. GM’s shares saw a 2% dip in premarket trading.
UPS, too, reported robust first-quarter figures, boasting adjusted earnings of $1.49 per share, surpassing the anticipated $1.41. Refraining from updating its annual outlook due to trade concerns, UPS shares rose by 2% in premarket trading. Coca-Cola (KO) similarly beat earnings estimates with an adjusted EPS of $0.73 but missed sales forecasts. The company described the impact of tariffs as manageable, providing slight reassurance to investors, nudging shares up by less than 1%.
Amid these developments, President Donald Trump is expected to announce measures to ease auto tariff burdens, potentially offering exemptions and reimbursements for companies impacted in the past, as well as reducing levies on foreign parts used in American car manufacturing. This prospective policy has caused minor gains for automakers like Stellantis and Ford. Overall, the market narrative reflects a sensitivity to earnings performance and uncertainties in trade policies, especially in the automotive sector. Investors remain cautious, evidenced by the mixed stock futures as companies like Coca-Cola and UPS navigate through trade complexities, maintaining engagement with the evolving corporate and geopolitical landscapes.
