Wall Street experienced slight losses in premarket trading on Tuesday, but the major indexes remained close to their record highs as a wave of corporate earnings reports continued to pour in. The S&P 500 futures fell by 0.1%, while both the Dow Jones Industrial Average and Nasdaq futures decreased by 0.2%.
Among the early gainers, homebuilders posted impressive results. D.R. Horton saw its shares surge nearly 7% after reporting third-quarter sales and profits that exceeded expectations. PulteGroup also outperformed analyst forecasts with a 1.7% increase in its stock, and Lennar gained 2.1%, reflecting the sector’s overall optimism.
Conversely, General Motors faced a decline of 3.6% in early trading after the company reported a downturn in profits and revenue from the previous quarter, although it maintained its full-year guidance amid concerns over potential auto tariffs that could reach $5 billion in 2025.
Coca-Cola Co. had a mixed performance; although it surpassed profit expectations, the company’s revenue fell slightly short, leading to its stock remaining largely unchanged. The soda giant did report a 6% increase in pricing for the April-June period, which helped offset a 1% decline in case volumes globally.
In European markets, Germany’s DAX index decreased by 1.1%, the CAC 40 in France lost 0.9%, and the FTSE 100 in London remained nearly flat. Asian markets had a volatile session, with Japan’s Nikkei initially rising but ultimately dropping 0.1% as it returned from a holiday, reflecting political uncertainties following recent elections.
Analysts have indicated that Prime Minister Shigeru Ishiba’s assurances to remain in office may offer temporary relief, but political challenges persist, particularly concerning trade negotiations with the U.S. Further uncertainty looms as South Korean markets reacted to anxieties surrounding tariffs, with the Kospi declining 1.3%.
In terms of commodities, U.S. benchmark crude oil prices fell to $65.34 per barrel, while the international Brent crude also experienced a decline, settling at $68.56 per barrel. The U.S. dollar strengthened slightly against the Japanese yen and the euro.
This ongoing fluidity in market dynamics showcases the interconnectedness of global traded goods and political stability, further emphasizing the importance of keeping an eye on upcoming trade negotiations and corporate earnings as potential indicators of economic health.