Stocks experienced a volatile trading day on Tuesday, initially hitting session highs before trending lower amid mixed messages regarding the ongoing tensions in Iran and a flurry of corporate earnings reports. President Trump fueled market speculation with statements on social media and a subsequent CNBC interview, asserting that Iran had repeatedly violated a ceasefire, hinting at a lack of intention to extend the current agreement that expires tomorrow. Despite the underlying tensions, Trump expressed optimism for a favorable deal with Tehran, though peace talks between the two countries remain stalled.
West Texas Intermediate crude futures climbed nearly 3%, closing at $92.13 per barrel. In contrast, major stock indices concluded the day in the red. The Dow Jones Industrial Average slipped by 0.6%, finishing at 49,149, while the S&P 500 also fell 0.6% to 7,064, and the Nasdaq Composite experienced a similar decline, closing down 0.6% at 24,259.
UnitedHealth Group stood out with impressive performance, posting a notable increase in stock price of 7.0% after reporting a strong earnings quarter. The health insurance company announced earnings per share of $7.23 for the three months ending March 31, a 0.4% year-over-year increase, and revenue of $111.7 billion, exceeding analyst expectations. Additionally, UnitedHealth improved its full-year earnings guidance, raising its forecast to $18.25 from $17.75 per share.
Conversely, 3M saw its stock drop 2.0% after the company offered a full-year earnings forecast that fell short of Wall Street expectations, despite better-than-anticipated first-quarter earnings and revenue. Another major faller was Apple, which declined 2.5% following the announcement that CEO Tim Cook would step down after nearly 15 years in the role. Cook will transition to the role of executive chair, with John Ternus set to take over as CEO starting September 1. Analysts noted that this leadership change comes amidst a significant shift in Apple’s strategy toward artificial intelligence, resulting in uncertainty among investors.
In a notable development, HSBC upgraded Intel shares to a “Buy” rating from “Hold,” setting a new price target of $95, which implies a potential upside of 43.4% from current trading levels. The chip manufacturer, which has seen its stock surge 250% over the past year due to various foundry agreements, is anticipated to report first-quarter results following Thursday’s market close.
On the political front, attention also turned to the confirmation hearing of Federal Reserve chair nominee Kevin Warsh. Warsh emphasized the importance of central bank independence and distanced himself from any directives from President Trump regarding interest rates. However, his path to confirmation appears uncertain as Senator Thom Tillis vowed to block the vote until the Department of Justice concludes its investigation into current Fed Chair Jerome Powell. This impasse means that if the vote remains equally divided among the Senate Banking Committee, Warsh’s nomination could falter.
