Stock Market Update

[BRIEFING.COM] The major averages continue to trade in a mixed disposition slightly above their session lows.

General Motors (GM 49.63, -3.58, -6.73%) is lower despite reporting upside Q2 results this morning. The company beat EPS expectations by $0.19, and while revenue fell 1.8% year over year to $47.12 billion, this was better than expected. Notably, this was GM's first year-over-year revenue decline since 4Q23.

Importantly, GM reaffirmed FY25 guidance for adjusted EPS at $8.25-10.00 and adjusted EBIT of $10.0-12.5 billion. The guidance was lowered post-tariffs on May 1, and that was reaffirmed today.

GM noted that its industry saw a spike in demand during Q2 due to tariff-related sales pull ahead, especially in April and May. Then in June and July, demand returned to levels that are in line with its full-year outlook of 16 million units.

Tariffs took a $1.1 billion bite out of GM's adjusted EBIT in Q2, which fell 31.6% yr/yr to $3.04 billion. In fairness, the tariffs are recent, so it will take time for GM to reconfigure its supply chain. As such, there were minimal mitigation offsets in Q2. GM said that mitigation efforts will take time to yield results, but it's still tracking to offset at least 30% of the $4-5 billion FY25 expected tariff impact.

The consumer discretionary sector as a whole is flat for the day.