Wall Street rises as corporate profits pile higher along with
uncertainty about Trump's trade war
[April 30, 2025] By
STAN CHOE
NEW YORK (AP) — U.S. stocks rose again Tuesday as stronger-than-expected
profits kept piling higher for companies, though CEOs said they’re
unsure how long that can last because of uncertainty around President
Donald Trump’s trade war.
The S&P 500 climbed 0.6% to extend its winning streak to a sixth day.
The Dow Jones Industrial Average added 300 points, or 0.7%, and the
Nasdaq composite rose 0.5%.
Honeywell International helped lead the market with a gain of 5.4% after
reporting stronger profit and revenue for the latest quarter than
analysts expected. Perhaps even more importantly for investors, it also
raised its forecast for profit over the full year.
“Though we have not yet seen it in our results, we recognize we face an
uncertain global demand environment for the remainder of 2025, and our
company will work tirelessly, leveraging all tools available to us, to
deliver for customers and shareholders,” CEO Vimal Kapur said.
Sherwin-Williams rose 4.8% for another one of the market’s bigger gains
after the paint and coatings company likewise reported a
better-than-expected profit.
CEO Heidi Petz said it expects to see softness from some of its
customers persist well into the second half of this year, but she also
said her company gets the majority of its raw materials from the regions
where it manufactures. That could help blunt the possible impact from
tariffs.

Other stocks weren’t as strong, even though their companies reported
stronger-than-expected profits.
Much like the broader market, UPS stock swung between losses and gains
at the day’s start of trading after it reported a stronger profit than
analysts expected for the first three months of 2025. Because it’s the
world’s largest package delivery company, 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 Tomé said
“could not be timelier.” Its stock finished 0.4% lower.
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. And Trump’s on-again-off-again rollout could by
itself throw into disarray the long-term plans for spending and
investment by businesses and households.
U.S. households are getting much more pessimistic because of tariffs,
and a report from the Conference Board on Tuesday said their
expectations for income, business and job market conditions dropped to
the lowest level since 2011 and are well below the level that usually
signals a recession ahead.

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Specialist James Denaro works on the floor of the New York Stock
Exchange, Tuesday, April 29, 2025. (AP Photo/Richard Drew)
 U.S. Treasury Secretary Scott
Bessent said such economic uncertainty is a tool Trump can use as he
negotiates tariffs and trade deals. “President Trump creates what I
would call strategic uncertainty in the negotiations,” he told
reporters at the White House.
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.
General Motors nevertheless slipped 0.6% despite reporting 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.”
JetBlue Airways’ stock bounced between losses and gains after CEO
Joanna Geraghty said the airline was puling its financial forecasts
for the full year given “the macroeconomic uncertainty.” The airline
also delivered a stronger profit than expected for the latest
quarter. Its stock accelerated later in the day and finished 2.7%
higher.
Coca-Cola also overcame an early drop to rise 0.8%. The beverage
giant reported better-than-expected earnings in the first quarter
and said the impact of tariffs on its business are likely to be
“manageable.” Coke updated some of its financial forecasts for the
year but left alone its guidance for an important underlying measure
of revenue growth.
All told, the S&P 500 rose 32.08 points to 5,560.83. The Dow Jones
Industrial Average gained 300.03 to 40,527.62, and the Nasdaq
composite climbed 95.18 to 17,461.32.

In the bond market, Treasury yields fell. The yield on the 10-year
Treasury dropped to 4.17% from 4.23% late Monday.
Not only did the report on consumer confidence come in weaker than
expected, so did an update on how many job openings U.S. employers
were advertising at the end of March. Such weaker-than-expected data
could eventually push the Federal Reserve to resume cutting interest
rates in order to give the economy a boost.
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.
___
AP Business Writer Elaine Kurtenbach contributed.
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