U.S. stocks closed near session highs on signs of trade deal progress.
In an interview with CNBC, Commerce Secretary Howard Luntick said “I have a deal done, done, done, done, but I need to wait for their prime minister and their parliament to give its approval, which I expect shortly.”
Lutnick did not name the country, but it was seen as a positive sign that deals were nearing the finish line. So far, the Trump administration has alluded to deals but hasn’t announced any.
The blue-chip Dow rose 0.75%, or 300.03 points, to 40,527.62 for its sixth straight up day for its longest winning streak since July; the S&P 500 gained 0.58%, or 32.08 points, to 5,560.83 to score its sixth straight win and its longest positive streak since November; and the tech-heavy Nasdaq added 0.55%, or 95.18 points, to 17,461.32. The 10-year Treasury yield slipped to 4.17%.
Auto sector gets a tariff break
Lutnick’s afternoon comments added to early tariff optimism after the White House confirmed it won’t subject automakers to stacked tariffs.
Current tariffs of 25% on imported vehicles into the U.S. will continue, but an executive order that President Donald Trump will sign later today will prevent other adjacent levies, such as additional 25% tariffs on steel and aluminum, from “stacking” on top of the others,, according to White House press secretary Karoline Leavitt.
Additional 25% tariffs on auto parts that are expected by May 3 are still scheduled to take effect, but some will get reimbursed. Reimbursements on auto parts tariffs include up to an amount equal to 3.75% of the value of a U.S.-made car for one year, followed by 2.5% of the car’s value in a second year, and then they would be phased out altogether, according to The Wall Street Journal, which first reported the expected changes Monday night.
A softer stance on tariffs is generally seen as a positive for inflation, the economy and the market, analysts said.
However, uncertainty on other tariffs, especially those against China, remained and kept the market choppy until Lutnick’s comments.
A “hostile and political” Amazon?
The White House blasted Amazon after a report said the ecommerce giant was planning to display tariff costs next to the total prices of products on its website.
If the report was true, the display would be considered a “hostile and political act,” said Leavitt.
Amazon denied the report. Instead, it said it was considering showing import charges on items sold via its Haul site for ultra-low-price items, not on its main storefront. Haul is a subsection of Amazon’s site and app that offers apparel, electronics and other goods priced below $20, competing with Chinese companies like Temu and Shein.
However, Amazon later said even that was not going to happen.
Amazon shares erased most of their early losses to end just lower.
Economic data
Consumer confidence fell to a near 5-year low, the Conference Board said on Tuesday. In April, confidence decreased nearly 8 points to 86, the weakest since May 2020 and marking the fifth straight monthly decline, the longest such stretch since 2008.
Consumers’ outlook also was bleak, with a measure of consumer expectations for the next six months plunging to the lowest level since 2011.
Meanwhile, job openings dropped to 7.192 million in March from a downwardly-revised 7.480 million in February and were the second-lowest since early 2021. However, “even as interest in bringing on new workers cooled, businesses are still reluctant to pare back current staff,” Wells Fargo economists said in a note. “The layoff and discharge rate slipped in March and remains below its pre-pandemic rate.”
More data are due this week. On Wednesday, the gross domestic product (GDP) for the first three months of the year along with the Federal Reserve’s preferred inflation gauge will be released before the market opens.
“If first-quarter GDP meets the consensus forecast of 0.3% growth, it will be the softest quarter since second-quarter 2022,” said Mike O’Rourke, chief market strategist at JonesTrading. “At this point, second-quarter should be more challenging.”
On Friday, before the market opens, investors will see the April jobs report. Economists, on average, expect 130,000 new jobs were added, according to the Wall Street Journal.
Corporate news
A slew of earnings continue to roll in. About 180 companies in the S&P 500 will report quarterly earnings this week, and investors will closely monitor how Trump’s tariffs could affect future profits and consumer spending.
Importantly, four of the so-called Magnificent Seven, which are some of the largest and most influential companies in the U.S. stock market, are among them. They are Amazon, Apple, Facebook parent Meta and Microsoft. Apple, especially, will get a hard look because of its heavy reliance on China.
Meta and Microsoft earnings are due Wednesday, and Apple and Amazon results will be released on Thursday.
After the market closed:
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Starbucks missed second-quarter Street estimates and its same-store sales fell for the fifth straight quarter. The coffee chain’s stock was down more than 1% in after-hours trade.
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Snap reported more revenues than analysts’ had predicted in the first three months of the year but declined to provide guidance for the next three months due to economic uncertainty that could weigh on advertising. It cut its full-year revenue outlook. Shares tumbled 10% in after-hours activity.
Earlier Tuesday, General Motors said its results in the first three months of the year topped analysts’ forecasts, but it’s reevaluating its full-year outlook to account for tariffs. The automaker’s stock slipped 0.64%.
“We believe the future impacts of tariffs could be significant, so we are reassessing our guidance and look forward to sharing more when we have greater clarity,” GM CFO Paul Jacobson said during a media call. “The prior guidance can’t be relied upon, and we’ll come back to the market with clarity as soon as we have it.”
Other corporate news during the day included:
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Bedding products manufacturer Leggett & Platt held on to their full-year guidance and said the company should benefit overall from Trump’s tariff plans. However, it warned that tariffs could hurt consumer confidence and discretionary demand for products and raise inflation. Shares soared 31.73%.
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Woodward’s fiscal second-quarter results topped analysts’ forecasts. Shares rose 1.86%.
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NXP Semiconductors shares fell 7% after the company only slightly beat expectations for revenue and announced a CEO transition.
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F5’s results in its fiscal second quarter beat Street estimates. Shares slipped almost 1%.
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Honeywell’s results in the first three months of the year beat forecasts and the company raised its full-year earnings outlook. The stock gained 5.4%.
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Spotify’s earnings came in below forecasts. Shares lost 3.5%.
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Royal Caribbean’s quarterly results topped expectations and lifted its full-year outlook as cruise demand continues to be solid. Shares edged just higher.
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Coca-Cola’s results in the first three months of the year came in above analysts’ forecasts. The beverage company held its full-year guidance. Shares rose nearly 1%.
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UPS’s first-quarter results topped Street estimates but it said it will cut 20,000 jobs this year due to lower volume from Amazon. Shares fell fractionally.
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Wells Fargo announced a stock buyback program of up to $40 billion. The bank’s shares added 2.42%.
Temu gets more expensive: Temu adds import charges, more than doubling some prices after Trump’s tariff on China
Cryptocurrency
Arizona may become the first U.S. state to establish a bitcoin reserve after lawmakers in the House of Representatives on Monday approved Senate Bill 1025 and Senate Bill 1373, clearing the way for a potential 10% allocation of treasury and pension funds into bitcoin and other digital assets.
The legislation now heads to Governor Katie Hobbs for approval. If signed, Arizona’s treasurer would be authorized to invest up to 10% of state-managed assets in digital currencies.
Bitcoin rose above $95,000, last up 0.01% at $95,046.22.
This story was updated with new information.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
This article originally appeared on USA TODAY: US stocks end up on trade deal hint, auto tariff relief. Dow up 300 pts
