Stocks slip and oil prices rise as ceasefire talks between the U.S. and Iran look uncertain

NEW YORK (AP) — U.S. stocks are losing ground Tuesday as Wall Street weighs the latest round of profit reports from big companies with the lingering risks from the ongoing war between the U.S. and Iran.

UnitedHealth Group and other big companies showed they’re making even bigger profits than analysts expected. Oil prices, meanwhile, rose moderately as last-minute ceasefire talks between the United States and Iran looked uncertain.

The S&P 500 fell 0.4%, coming off just its second drop in 14 days, and is hovering below its all-time high. The Dow Jones Industrial Average was down 194 points, or 0.4%, as of 2:33 p.m. Eastern time, and the Nasdaq composite was down 0.3%.

UnitedHealth helped lead the market with a jump of 8.8% after reporting stronger profit and revenue for the beginning of the year than analysts expected. It also raised its forecast for profit over the full year of 2026.

That’s big because stock prices tend to follow the path of corporate profits over the long term. It’s a double-plus for investors when companies not only top earnings estimates but also forecast even better growth ahead.

Quest Diagnostics rose 4.9% after it likewise joined the fattening list of companies topping expectations for profit and revenue during the latest quarter. It also raised its forecast for profit for the full year.

They helped offset a 12% drop for Tractor Supply, whose profit and revenue for the latest quarter fell short of expectations.

Other signals are also indicating the U.S. economy may be doing OK despite sharp up-and-down swings for oil prices because of the war with Iran. A report on Tuesday morning showed that U.S. retailers made more money in March, the first full month of the war, than analysts expected.

Growth was even relatively stable for retail sales when not including those from gasoline stations.

“It’s become cliched to say that the economic hit will depend on the duration of the Middle East conflict, but that cliché does ring true,” according to Brian Jacobsen, chief economic strategist at Annex Wealth Management.

Source: WPLG