Trade Tensions and Earnings Reports Impact Key Stocks

In the past 24 hours, significant developments have influenced major stocks listed on the S&P 500, Dow Jones Industrial Average, and NASDAQ. Key events include the escalation of trade tensions with Canada and notable earnings reports from companies like Delta Air Lines and Levi Strauss.

Escalation of Trade Tensions with Canada

On July 11, 2025, President Donald Trump announced an increase in tariffs on Canadian imports, raising them from 25% to 35%. This move has heightened concerns about U.S. trade policy and its potential impact on the economy. The announcement led to a decline in major stock indexes:

• The S&P 500 fell by 0.3%.
• The Dow Jones Industrial Average dropped 0.6%.
• The NASDAQ composite decreased by 0.2%.

Financial and materials sectors were particularly affected, with companies like Visa and Gilead Sciences experiencing declines of 2.2% and 4.3%, respectively. (reuters.com)

Delta Air Lines Reports Strong Earnings

Despite the broader market downturn, Delta Air Lines reported better-than-expected revenue and profit for the second quarter of 2025. The airline also projected a positive outlook for the remainder of the year, leading to a 12% surge in its stock price. This positive performance also boosted other airline stocks:

• United Airlines and American Airlines saw significant gains.
• The Dow Jones Transport Average increased by 2.3%.

Investors are optimistic about the airline industry’s recovery, despite ongoing trade tensions. (reuters.com)

Levi Strauss Exceeds Expectations

Levi Strauss reported strong earnings, surpassing sales and profit expectations. The company also raised its full-year forecast, leading to an 11.3% increase in its stock price. This performance highlights the resilience of the consumer discretionary sector amid economic uncertainties. (apnews.com)

Market Outlook

Investors are closely monitoring the upcoming corporate earnings reports, particularly from major banks like JPMorgan Chase, which are scheduled to report next week. These reports will provide further insights into how ongoing trade issues and economic policies are affecting corporate earnings. (apnews.com)

In conclusion, while trade tensions have introduced volatility into the markets, strong earnings reports from companies like Delta Air Lines and Levi Strauss demonstrate that certain sectors continue to perform well. Investors should remain vigilant and consider both macroeconomic factors and individual company performances when making investment decisions.