GM Drops 8.1% After Warning of Tariff Hit

US stocks drifted to another record Tuesday following some mixed profit reports, as General Motors and other big US companies gave updates on how much President Trump's tariffs are hurting or helping them.

• The S&P 500 rose 4.02 points, or 0.1%, to 6,309.62 to beat the all-time high it set a day earlier.
• The Dow Jones Industrial Average rose 179.37 points, or 0.4%, to 44,502.44.
• The Nasdaq composite fell 81.49 points, or 0.4%, to 20,892.68.

General Motors dropped 8.1% despite reporting a stronger profit than expected, the AP reports. The automaker said it's still expecting a $4 billion to $5 billion hit to its results over 2025 because of tariffs and that it hopes to mitigate 30% of that. GM also said it will feel more pain because of tariffs in the current quarter than it did during the spring.

• Homebuilders soared following better-than-forecast profit reports. DR Horton rallied 17% and PulteGroup jumped 11.5%. That was even as both companies said homebuyers are continuing to deal with challenging conditions, including higher mortgage rates and an uncertain economy.
• Genuine Parts, an Atlanta-based company that sells auto and industrial replacement parts around the world, trimmed its profit forecast for the full year in order to incorporate "all US tariffs currently in effect," along with its updated expectations for business conditions in the second half of the year. Its stock rose 7.6% after it reported a stronger profit for the latest quarter than analysts expected.

• RTX fell 1.6% after cutting its forecast for profit in 2025 but also raising its forecast for revenue. It made the changes to incorporate what CEO Chris Calio called "our current assessment of the impact of tariffs," along with other changes anticipated from Washington's recent approval of big tax changes.
• Coca-Cola slipped 0.6% even though it delivered a stronger profit than forecast. Its revenue for the quarter only edged past analysts' expectations, and it said that higher prices that it charged helped offset sales of fewer cases during the spring.
• Opendoor Technologies, a company that caught interest among investors looking for the next "meme stock" that could rise regardless of how its profits are doing, lost momentum and dropped 10.3% to $2.88. It had climbed as high as $3.99 in the morning, more than quintuple its price of 78 cents from just two Fridays ago.