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Futures down: Dow 0.19%, S&P 500 0.09%, Nasdaq down 0.19%

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Tariffs take a $1 bln bite from GM earnings, shares fall

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RTX falls after cutting 2025 profit forecast

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Fed chair Jerome Powell's comments due at 08:30 a.m. ET

(Updates with analyst comment, prices)

By Nikhil Sharma and Pranav Kashyap

July 22 (Reuters) -

S&P 500 and Nasdaq futures slipped into the red on Tuesday

as investors geared up for a whirlwind day of company results

and awaited potential breakthroughs in negotiations between the

United States and its trading partners.

At 07:00 a.m. ET, U.S. S&P 500 E-minis were down

6 points, or 0.09%, Nasdaq 100 E-minis were down 43.25

points, or 0.19%, and Dow E-minis were down 86 points,

or 0.19%.

Wall Street's heavyweights are starting to feel the sting of

tariffs. General Motors ( GM ) saw its second-quarter core

profit tumble 32% to $3 billion, blaming steep tariff costs for

shaving $1.1 billion from its bottom line.

The company's shares lost 3.5% in premarket trading,

while peer Ford also dropped 1%.

RTX

cut

its 2025 profit forecast as the aerospace and defense giant

took a hit from Trump's tariff war. Its shares dropped 1%.

Meanwhile, Coca-Cola rose 1% after

beating

second-quarter revenue estimates.

Despite trade policy uncertainty out of Washington, the U.S.

economy's resilience has propelled major indexes to fresh

all-time highs.

With little over a week to go before August 1, Treasury

Secretary Scott Bessent emphasized on Monday that the

administration was prioritizing the quality of trade deals over

speed.

Meanwhile, trade talks are stuck as the European Union

weighs new countermeasures against the United States and hopes

for an interim deal with India were fading, Indian government

officials said.

Still, a slew of positive earnings surprises has kept

markets near record territory. Analysts expect S&P 500 companies

to report a healthy 6.7% jump in second-quarter profits, with

Big Tech leading the charge, data compiled by LSEG shows.

"While U.S. stocks may be due for a breather, we believe

the bull market remains intact... we recommend using volatility

as an opportunity to phase into markets," Mark Haefele, chief

investment officer, UBS Global Wealth Management said.

Tuesday's cautious trading comes after a rollercoaster

session that ended with the S&P 500 and Nasdaq

both notching record closes. Much of the action was fueled by

investors snapping up megacaps such as Alphabet ahead

of earnings.

Google-parent Alphabet and EV-maker Tesla will

inaugurate quarterly results for the "Magnificent Seven" stocks

on Wednesday, setting the tone for Wall Street.

Shares of Tesla were down 0.3% in premarket trading, having

fallen about 19% so far in 2025 amid CEO Elon Musk's political

involvement and the challenges its core business faces.

Investors will also be tuning in at 8:30 a.m. ET for a

speech from U.S. Federal Reserve Chair Jerome Powell, searching

for hints on the central bank's next move.

The Fed's reluctance to cut rates has drawn fire from

the Trump administration, fueling speculation about Powell's

future. Bessent

signaled

on Monday that he wants to review the Fed's performance as

an institution.

Following last week's mixed economic signals, traders have

all but ruled out a rate cut next week and now see a 56.3%

chance of an easing in September, according to the CME FedWatch

tool.

Among other movers, U.S. coal miners Peabody Energy ( BTU )

and Warrior Met Coal ( HCC ) were up 3.7% each, as China's

coking coal prices surged amid market speculation about

government inspections in major production hubs.