Stocks were volatile to start Tuesday's session, but stabilized before lunchtime.
An early morning appearance from Federal Reserve Chair Jerome Powell failed to give any clues on monetary policy as central bankers are in their pre-meeting blackout period (the next Fed meeting starts one week from today). So this put focus squarely on the earnings calendar.
A handful of blue chips had the most talked-about results today. Coca-Cola (KO, -0.6%), for one, reported higher-than-expected second-quarter results.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The company also reiterated its full-year revenue forecast, narrowed its 2025 earnings per share (EPS) outlook, and confirmed that it will launch an offering that uses cane sugar instead of high-fructose corn syrup.
"It has now been over eight years since KO reported a quarterly EPS miss," says CFRA Research analyst Garrett Nelson, noting that the company's guidance appears conservative given its history of "setting low expectations and then exceeding them."
Nelson adds that Coca-Cola's "significant non-U.S. presence, in addition to localized production, is helping the bottom line through tailwinds from a weakening U.S. dollar and tariff mitigation."
Sherwin-Williams sinks after cutting outlook
Sherwin-Williams (SHW) was another underperforming Dow Jones stock today with its 0.4% decline.
The paint maker beat on the top line, but its earnings per share fell short of analysts' estimates. SHW also lowered its full-year forecast citing "choppy" demand, which it expects to "continue if not deteriorate in the second half of the year."
"The company expects a 'softer for longer' demand environment due to continued housing affordability headwinds, stubbornly high mortgage rates, and declining U.S. consumer confidence," says CFRA Research analyst Emily Nasseff Mitsch.
Despite weakness in these two blue chip stocks, the Dow Jones Industrial Average managed to add 0.4% to 44,502 thanks to gains in health care stocks Merck & Co (MRK, +2.9%) and Amgen (AMGN, +3.3%).
The broader S&P 500 rose 0.06% to 6,309 and the tech-heavy Nasdaq Composite fell 0.4% to 20,892.
GM stock drops after earnings
General Motors (GM) tumbled 8.1% after the automaker said net income was down 35% year over year in Q2 due to a $1.1 billion impact from President Donald Trump's tariff policies. This offset top- and bottom-line beats.
The company reiterated its full-year guidance but said it expects a bigger impact from tariffs in the third quarter.
GM Chief Financial Officer Paul Jacobson says the company does have a longer-term plan "to mitigate a substantial part" of the tariff impact "through strategic actions such as manufacturing adjustments, targeted cost initiatives and consistent pricing."
However, the company noted that it is not planning to raise car prices despite the tariff hit.
Kohl's surge sparks meme-stock chatter
In non-earnings news, Kohl's (KSS) soared Tuesday amid chatter that the department store chain is Wall Street's newest meme stock.
Shares of the retailer opened the day nearly 90% higher and closed with a 37.6% gain.
As Neil Saunders, managing director of GlobalData, told CNBC, there is "nothing really that Kohl's has done to fundamentally earn this level of increase" and that the company's "fundamentals remain quite weak."
Indeed, in its most recent earnings report, both net sales and same-store sales were down 4% year over year. And on the price charts, shares of the consumer discretionary stock were down 26% for the year to date heading into Tuesday's session.
But it's "irrational exuberance" we're seeing, Saunders says, which is "a very similar thing to what we saw with Bed Bath and Beyond back in the day." In other words: Buyer beware.
Related content
- Kiplinger's Economic Calendar: This Week's Reports and Results
- What Will the Fed Do at Its Next Meeting?
- The Dollar Index Is Sliding. Is Your Portfolio Prepared?
-
Credit Cards That Actually Reward Your LoyaltyIf you have bank or investment accounts with your credit card issuer, you may qualify for extra cash back, waived fees and other benefits.
-
The 10 Most Valuable Vacation Destinations for Retirees in 2026Whether traveling within the U.S. or internationally, retirees can find a perfect blend of relaxation and excitement in these destinations, all while staying within budget.
-
Will Taxes Shred Your 401(k) or IRA During Your Retirement? It's Very LikelyConventional wisdom dictates that you save in a 401(k) now and pay taxes later, but turning that rule on its head could leave you far better off. A financial planner explains why.
-
More Retirees Are Renting: Should You? A Financial Adviser Weighs InIn some ways, renting is cheaper, more flexible and easier, but unless you understand the implications for your taxes and health costs, it might not be for you.
-
Dow Dives 878 Points on Trump's China Warning: Stock Market TodayThe main indexes erased early gains after President Trump said China is becoming "hostile" and threatened to cancel a meeting with President Xi.
-
I'm a Real Estate Investing Pro: This 1031 Exchange Strategy Can Triple Your Cash FlowSavvy investors can use 1031 exchanges to unlock value by moving capital across markets in a play called geographic arbitrage. These tax implications can make or break the strategy.
-
I'm an Insurance Pro: Everyone Needs to Prepare for Earthquakes, Even if You Don't Live Near a Fault LineHere are my tips for what to do before, during and after an earthquake. The more prepared you are, the more you'll be able to keep your wits about you if it happens.
-
Stocks Retreat as Shutdown Continues: Stock Market TodayWhile the main indexes closed lower today, Delta and PepsiCo gained ground on encouraging earnings reports.
-
Where There's a Will, There's a Way Your Assets Will Be Distributed as You WishYour will is the backbone of a strong, adaptable estate plan that ensures what you leave behind goes to your selected beneficiaries. Without a will, state laws determine who gets your assets.
-
I'm a Financial Adviser: This Is What You're Really Losing if You Cut Back on Your 401(k) ContributionsMissing out on the benefits of the employer match and compounding growth could force you to work longer and lower your standard of living in retirement. Here are some alternative options.
