Tech led declines in US stocks on Tuesday after notching new all-time highs the prior day, as Wall Street waded through a fresh wave of earnings that brought a tariffs warning from General Motors (GM).

The Nasdaq Composite (^IXIC) dropped 0.9% ahead of the first Big Tech quarterly results, and the S&P 500 (^GSPC) fell 0.3%. Meanwhile, the Dow Jones Industrial Average (^DJI) climbed around 0.15%.

The market has so far proven resilient in the face of tariff uncertainty, with the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC hitting fresh record closes on Monday. Earnings season has been largely upbeat, buoying stocks and sentiment — though the market is now weighing how far the recent rally can run.

Earnings results from a wave of companies Tuesday were mixed. The stocks of General Motors's (GM), Philip Morris (PM), RTX (RTX), and Lockheed Martin (LMT) sank after their quarterly results disappointed Wall Street.

General Motors reported that its core profit sank over 32% in the second quarter as tariff headwinds sapped $1.1 billion from its results. The Big Three automaker warned the hit would be deeper in the current quarter, providing food for thought to investors assessing the impact of President Trump's trade policy.

Read more: Full earnings coverage in our live blog

At the same time, Wall Street is keenly waiting for second-quarter results from "Magnificent Seven" members Alphabet (GOOGL, GOOG) and Tesla (TSLA) on Wednesday. As the valuation of large-cap tech stocks soars, investors are hoping for reassurance that the hype around AI is more than just buzz.

The watch is on for signs of progress in trade talks as the clock ticks down to President Trump's Aug. 1 deadline to strike a deal or face higher tariffs. Prospects for US-India pact appear to be faltering with negotiations deadlocked, as US talks with the EU, another key trading partner, also hit the buffers.

Read more: The latest on Trump's tariffs

Jerome Powell's speech Tuesday morning is also in high focus as the Federal Reserve chair comes under pressure from Trump to step down. While investors will scour his comments for insight into tariff risks to the US economy, Powell is expected to focus on regulatory issues rather than monetary policy in the blackout period ahead of the Fed's July meeting.

US stocks wavered on Tuesday after hitting new all-time highs the day prior, as Wall Street waded through a fresh wave of earnings.

The Dow Jones Industrial Average (^DJI) rose nearly 0.1%.

Meanwhile, the S&P 500 (^GSPC) traded roughly flat. The Nasdaq Composite (^IXIC) slipped 0.1% ahead of the first Big Tech quarterly results Wednesday from Alphabet (GOOGL, GOOG) and Tesla (TSLA).

The stocks of General Motors's (GM), Philip Morris (PM), RTX (RTX), and Lockheed Martin (LMT) sank after their quarterly results disappointed Wall Street. Coca-Cola (KO) shares dropped despite reporting earnings that topped forecasts.

Yahoo Finance's David Hollerith reports:

Treasury Secretary Scott Bessent is taking aim at both the Federal Reserve and the rules the Fed enforces as a supervisor of big banks but made it clear he doesn't think Fed Chair Jerome Powell needs to step down immediately.

His boss, President Trump, has been calling repeatedly for Powell's resignation.

\\"There’s nothing that tells me that he should step down right now,\\" Bessent said on Fox Business Tuesday. \\"His term ends in May. If he wants to see that through, I think he should. If he wants to leave early, I think he should.\\"

Yet the Treasury secretary still turned up the pressure on Powell and the Fed with a post Monday on X stating that there should be a review of the central bank’s $2.5 billion renovation of its headquarters and a review of its non-monetary policy operations.

He argued that “significant mission creep and institutional growth have taken the Fed into areas that potentially jeopardize the independence of its core monetary policy mission.”

Read more here.

Wall Street analysts have high hopes for oil and gas stocks, encouraged by cheap valuations and President Trump’s full-throated support for the beleaguered energy sector.

Bloomberg reports:

Energy boasts the highest percentage of buy-rated equities among the 11 sectors in the S&P 500 Index (^GSPC): roughly three in four members have buy recommendations, compared with roughly half in the broader market, according to data compiled by Bloomberg.

Plus, sell-side analysts see energy stocks rising about 16% over the next 12 months, second only to the health-care segment and roughly double the projected gain for the overall index.

Energy stocks — one of three index segments in the red this year — appear to have room to run. They’re the cheapest S&P 500 sector based on price-to-earnings ratio, and Trump is a cheerleader for the industry, calling for companies to “drill, baby, drill.”

“The thesis that some people have is that multiples and valuations are very, very low right now,” Leo Mariani, analyst at Roth Capital Partners, said in an interview.

Looking further into the future, the sector is expected to post the highest earnings growth in 2026, according to Bloomberg Intelligence.

Read more here.

Coca-Cola (KO) beat Wall Street's second quarter revenue and profit estimates on Tuesday, as steady soda demand and higher prices boosted profits.

But the stock was down about 1% in premarket trading, as case volumes fell overall.

Notably, the company said it plans to launch an offering made with US cane sugar under its trademark Coca-Cola product range this fall. In recent days, President Trump said that the company agreed to use cane sugar in its products, which Coke didn't confirm at the time.

Here's what Coca-Cola reported, per Reuters:

Prices rose 6% overall in the second quarter, following a 5% rise in the prior quarter, led by increases in some inflationary markets.

Meanwhile, total case volumes fell about 1%, compared with a 2% rise in the preceding three-month period.

Coca-Cola Zero Sugar jumped 14%, driven by growth across all geographies.

The company's comparable revenue rose 2.5% to $12.62 billion. Analysts on average had expected $12.54 billion, according to data compiled by LSEG.

Excluding items, the company earned 87 cents per share, beating estimates of 83 cents.

Read more here.

Lockheed Martin (LMT) stock fell 6% premarket after the defense giant recorded pre-tax losses of $1.6 billion, mainly linked to a classified program within its Aeronautics segment.

Reuters reports:

Lockheed Martin (LMT) reported on Tuesday that its second-quarter profit plunged by about 80%, after the US defense giant recorded pre-tax losses of $1.6 billion, mainly linked to a classified program within its Aeronautics segment.

Read more here.

US automaker General Motors (GM) stock fell over 3% before the bell on Tuesday after reporting a fall in second quarter core profit of 32% to $3 billion. The automaker said tariffs have sapped $1.1 billion from results as it continues to grapple with President Trump's challenging trade war.

Reuters reports:

The automaker's revenue in the quarter ended June 30 fell nearly 2% to about $47 billion from a year ago. Its quarterly adjusted earnings per share fell to $2.53 compared with $3.06 a year earlier.

Analysts on average expected the company to notch a quarterly adjusted profit of $2.44 per share, according to data compiled by LSEG. Shares of the company fell about 3% in premarket trade.

The largest U.S. automaker by sales said it expects the tariff impact to worsen in the third quarter and stuck to a previous estimate that trade headwinds threaten to hit the bottom line by $4 billion to $5 billion. GM said it could take steps to mitigate at least 30% of that impact.

Read more here.

Yahoo Finance's Hamza Shaban reports in today's Morning Brief:

On Monday, Trump Media (DJT) announced it had purchased $2 billion in bitcoin and related securities as part of its bitcoin treasury strategy. The move is the latest example of public companies purchasing bitcoin and, now, ethereum (ETH-USD) to capitalize on rising token prices.

Counting those purchases, President Trump's namesake media group said bitcoin, the largest cryptocurrency, now comprises two-thirds of its total of $3 billion in liquid assets. But just because companies are trying to emulate Strategy's (né Microstrategy) astronomical success doesn't mean that they will.

As my colleagues David Hollerith and Laura Bratton have reported, dozens of companies have increased their exposure to the digital asset since 2023. Eighty firms have adopted the “bitcoin standard” by adding bitcoin to their treasury reserves, according to Bernstein analyst Gautam Chhugani and data tracked by Coinkite.

But it isn't an infallible strategy. While Trump Media shares surged following the purchase announcement, the stock has been struggling. Shares are down more than 40% for the year. GameStop (GME), another imitator of Michael Saylor's bitcoin-holding company, has shed 25% so far this year. The meme stock turned \\"hodler\\" is down by roughly the same percentage since disclosing its bitcoin-accumulation program in May.

Read more here.

Dutch chipmaker NXP (NXPI) disappointed investors with a less-than-bullish revenue outlook for the next quarter, sending its stock sliding almost 6% in premarket trade.

Bloomberg reports:

Revenue in the period will be $3.05 billion to $3.25 billion, the Dutch company said in a statement on Monday. Though the midpoint of that range topped the average Wall Street estimate, some analysts predicted a number above $3.3 billion, according to data compiled by Bloomberg.

The outlook suggests that NXP is still contending with a turbulent industry. The company is heavily reliant on the automotive sector, which accounts for more than half of its revenue and has been hit by US President Donald Trump’s tariff campaign. The levies have upended global supply chains and triggered uncertainty over customer orders.

Bernstein analyst Stacy Rasgon described the report as “mostly fine,” but said it didn’t quite match the “whisper” numbers that some were hoping for.

Read more here.

Economic data: Richmond Fed manufacturing index (July)

Earnings: Capital One (COF), Coca-Cola (KO), DR Horton (DHI), Enphase Energy (ENPH), GM (GM), Lockheed Martin (LMT), Philip Morris International (PM), SAP (SAP), Texas Instruments (TXN)

Here are some of the biggest stories you may have missed overnight and early this morning:

Ethereum is surging, and more companies want in

Chances of an India-US trade deal are dimming

Nvidia chip challenger FuriosaAI lands its first major customer

Trump-backed $500B Stargate AI project is struggling: WSJ

Bessent calls for deeper US bank regulatory reforms

Universal Music confidentially files for US listing

Tesla's retro-futuristic diner officially opens

Here are some top stocks trending on Yahoo Finance in premarket trading:

Nvidia (NVDA) stock fell over 1% premarket following news that FuriosaAI Inc., the Seoul-based startup seeking to design chips to compete with Nvidia (NVDA) Corp., has sealed its first major contract months after rejecting an $800 million acquisition offer from Meta Platforms Inc. (META)

Oracle (ORCL) shares dropped over 2% in premarket trading after it was announced that Stargate, a multi-billion-dollar effort by ChatGPT's creator OpenAI (OPAI.PVT), SoftBank (SFTBY, 9984.T) and Oracle (ORCL) are now setting a more modest goal of building a small data center by the end of the year, according to reports in The Wall Street Journal reported on Monday.

Medpace Holdings, Inc. (MEDP) stock surged over 40% before the bell on Tuesday after exceeding analysts revenue expectations on Monday, with sales up over 14% year on year to $603.3 million.

Oil prices fell early morning Tuesday as the trade negotiations between the EU and the US continue to impact the economic landscape for crude consumption.

Reuters reports:

Brent crude (BZ=F) futures fell 52 cents, or 0.75%, to $68.69 a barrel by 0325 GMT. U.S. West Texas Intermediate (CL=F) crude was at $66.69 a barrel, down 51 cents, or 0.76%. Both benchmarks settled slightly lower on Monday.

The August WTI contract expires on Tuesday and the more active September contract was down 54 cents, or 0.82%, to $65.41 a barrel.

\\"Broad demand concerns continue to simmer amid escalating global trade tensions, especially as markets eye the latest tariff threats between major economies and Trump's potential announcements ahead of August 1 deadline,\\" said Priyanka Sachdeva, senior market analyst at Phillip Nova.

\\"Investors are also eyeing the ripple effects of fresh U.S. sanctions on Russian crude,\\" she added.

Read more here.