Wall Street got pulled in opposite directions Thursday as President Trump's latest tariff escalation created winners and losers among auto stocks, while better-than-expected data on the economy helped support the market.
- The S&P 500 slipped 18.89 points, or 0.3%, to 5,693.31 after drifting between small gains and losses through the day.
- The Dow Jones Industrial Average fell 155.09 points, or 0.4%, to 42,299.70.
- The Nasdaq composite fell 94.98 points, or 0.5% to 17,804.03.
General Motors sank 7.4% for one of the market's sharper losses after Trump
announced 25% tariffs on imported cars. Ford Motor dropped 3.9%.
Automakers based outside the US also sank. In Seoul, Hyundai Motor dropped 4.3%. In Tokyo, Honda Motor fell 2.5%, and Toyota Motor lost 2%. But US electric-vehicle makers Tesla and Rivian held up much better. They look to face less pressure from Trump's tariffs because more of their production happens in the US. Rivian rallied 8.7%, and Tesla rose 0.4%. Companies that could benefit from drivers opting against buying new cars also rose. Among auto parts retailers, O'Reilly Automotive climbed 3.1%, and AutoZone gained 4%. CarMax, which sells used autos, rose 2.5%.
- Among non-auto stocks, Petco Health & Wellness jumped 31.6% after the retailer reported slightly stronger results for the latest quarter than analysts expected. GameStop slumped 22.1% after its plan to sell debt in an effort to fund purchases of bitcoin raised some questions on Wall Street.
Even US automakers selling vehicles in the country can feel the pain of tariffs because their supply chains are spread throughout North America, the AP reports. Trump says he wants more manufacturing to take place within the US. "There are still a lot of unknowns, but if this remains in place, there will clearly be some pain for the companies to digest," according to UBS analyst Joseph Spak. Among the uncertainties are how the government will determine how to apply tariffs to parts that are compliant with the free-trade agreement that it has with Mexico and Canada but are not made entirely within the US. Tracking parts could be difficult, according to Spak.
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One report on Thursday said slightly fewer workers applied for unemployment benefits last week than economists expected. It's the latest sign the job market may be settling into a "low fire, low hire" state. A second report said the US economy's growth during the final three months of last year was slightly stronger than earlier estimated. The better-than-expected data helped Treasury yields in the bond market remain relatively steady.
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