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U.S. stocks had a muted opening Friday morning, as trade war pessimism resumed its hold following a rally the day before. Meanwhile, bulls are betting on Google (GOOGL) parent Alphabet’s blowout earnings and — one more time — hopes that the Fed could cut rates in the coming months.
The Dow Jones Industrial Average was off 195 points by midmorning, or 0.5%. The S&P 500 was flat and the Nasdaq edged up 0.3% — a slightly muted response considering Thursday’s tech-fueled rally. The VIX was steady near 26.7, suggesting investors remain on edge, and gold was down 1.6%, cooling off slightly from its recent historic surge.
The U.S.-China trade story took a strange turn, as President Donald Trump repeated that talks are underway — even though Beijing said they’re not. Chinese officials have flatly denied any negotiations are happening, with Foreign Ministry spokesperson Guo Jiakun urging the U.S. not to “mislead the public.”
The whiplash is fueling fresh skepticism over whether real progress is being made or if it’s just another series of vague hints meant to stabilize markets.
Amid the confusion over trade negotiations, Trump was asked in a Time magazine interview published Friday morning about a scenario in which tariffs remain as high as 50% a year from now, and whether he would consider that a victory.
“Total victory,” Trump said.
Consumer sentiment slips from March
The University of Michigan’s latest look at consumer sentiment — which measures how people view their finances and the U.S. economy — dropped in April, extending its decline.
“Consumer sentiment fell for the fourth straight month, plunging 8% from March,” said Joanne Hsu, the director of surveys of consumers at the Institute for Social Research. The index came in at 52.2 for April — up from an initial reading of 50.8 earlier in the month, but down from 57.0 in March.
Hsu noted that consumers’ outlook has tanked 32% since January, “the steepest three-month percentage decline seen since the 1990 recession.” Additionally, consumers’ year-ahead inflation expectations rose to 6.5% in April, up from 5.0% in March; Hsu called it the “highest reading since 1981.”
Google beats on earnings
Google turned in a stunner after the bell Thursday: Revenue jumped 12% to $90.2 billion, net income surged 46% to $34.5 billion, and the company sweetened its dividend by 5% while greenlighting another $70 billion in buybacks. The results crushed expectations and delivered exactly what Wall Street wanted to see — big growth without cost sprawl.
With markets hypersensitive to expense discipline and guidance right now, Alphabet’s show of strength is likely helping steady the mood.
Google stock was up about 2.8% in Friday morning trading.
Against the uncertain trade backdrop, major firms across sectors — from American Airlines (AAL) to Procter & Gamble (PG) — have withdrawn or revised their financial forecasts, citing the unpredictable nature of tariff policy and their impact on consumer demand and supply chains.
The trend reflects a broader unease in the business community, with leaders like Richard Branson, David Solomon of Goldman Sachs (GS), Jamie Dimon of JPMorgan (JPM), and BlackRock’s (BLK) Larry Fink warning of turbulence, disruption, and the possibility that the U.S. is already in a recession.
Colgate says tariffs don’t rinse clean, leave residue
On Friday morning, Colgate-Palmolive (CL) joined the ranks of other companies cutting their full-year earnings forecast – specifically citing the impact of tariffs and escalating trade tensions.
The consumer goods giant behind Softsoap and Speed Stick now expects flat to low-single-digit EPS growth, down from prior projections. CEO Noel Wallace cited “uncertainty and volatility in global markets,” noting that while underlying demand remains strong, the new tariffs will pressure margins, especially in Latin America — one of Colgate’s largest markets. The company is exploring pricing adjustments and cost cuts to offset the hit.
AbbVie, HCA and more to report earnings today
Companies reporting earnings today include some of the biggest names across healthcare, consumer goods, and energy. Pharmaceutical giant AbbVie (ABBV), hospital operator HCA Healthcare (HCA), and insurance heavyweight Aon (AON) are all on deck. Charter Communications (CHTR) and oil services firm Schlumberger (SLB) will provide reads on media and energy activity.
- Harri Weber contributed to this report.