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Ford, GM fall after tariff threats

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Best Buy ( BBY ) plummets after trimming annual sales, profit

forecast

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Amgen ( AMGN ) slips as keenly awaited obesity drug data

disappoints

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Indexes: Dow down 0.44%, S&P 500 up 0.20%, Nasdaq up 0.43%

(Updates at market open)

By Johann M Cherian and Purvi Agarwal

Nov 26 (Reuters) - The benchmark S&P 500 and the Nasdaq

extended recent gains on Tuesday, as technology stocks

rebounded, while investors parsed Donald Trump's tariff pledges

on top trade partners and awaited minutes from the Federal

Reserve's latest meeting.

President-elect Trump said he would impose a 25% conditional

tariff on Canadian and Mexican imports that could violate a

free-trade deal he negotiated during his previous term. He also

outlined "an additional 10% tariff, above any additional

tariffs" on imports from China, raising the risk of trade wars.

Automakers such as Ford and General Motors ( GM )

-that have highly integrated supply chains across Mexico, the

U.S. and Canada - lost 2.8% and 7%, respectively.

However, some analysts said that the threats might just be

used as a negotiating tool.

"At this point it's probably too early to tell. But I don't

think it's something that is over and I wouldn't be shocked if

we turn the new year and all of a sudden this becomes a big

issue," said Joe Saluzzi, co-head of equity trading at Themis

Trading.

At 9:42 a.m. ET, the Dow Jones Industrial Average

fell 197.32 points, or 0.44%, to 44,539.25, the S&P 500

gained 11.76 points, or 0.20%, to 5,999.13 and the Nasdaq

Composite gained 81.01 points, or 0.43%, to 19,135.84.

Gains in megacaps such as Nvidia ( NVDA ), Microsoft ( MSFT )

and Apple ( AAPL ) boosted the information technology

sector and also the tech-heavy Nasdaq.

The blue-chip Dow was weighed down by declines in Amgen ( AMGN )

, which lost 11.5% after its experimental obesity drug

fell short

of expectations.

Yields on Treasury bonds, that had slipped in the previous

session following Scott Bessent's selection as incoming Treasury

secretary, rose and kept a lid on equities' gains.

The S&P 500 touched a record high on Monday and logged its

sixth-straight session of gains, while the Russell 2000

also scaled an all-time high after three years. On the day, the

small-cap index was down 0.4%.

Minutes from the central bank's meet earlier this month will

be in focus on the day. Top on the radar this week is the

personal consumption expenditure report due on Wednesday.

Analysts say Trump's trade and fiscal policies, though

seen as a positive for companies and economic growth, could

stoke inflation pressures and slowdown the Fed's monetary policy

easing cycle.

Minneapolis Federal Reserve President Neel Kashkari,

typically seen as hawkish on monetary policy, said he is open to

cutting interest rates again next month.

Traders have recently swayed in placing their bets on the

central bank's move in December and currently favor a 25-basis

point interest rate cut by a 56.2% chance, as per the CME

Group's FedWatch Tool.

Among others, Eli Lilly rose 3.7% after U.S. President Joe

Biden was set to propose expanding Medicare and Medicaid

coverage for anti-obesity drugs.

Best Buy ( BBY ) lost 8.8% and was among top decliners on

the S&P 500 after trimming its annual profit and sales

forecasts.

Declining issues outnumbered advancers by a 2.12-to-1 ratio

on the NYSE and by a 1.62-to-1 ratio on the Nasdaq.

The S&P 500 posted 26 new 52-week highs and three new

lows, while the Nasdaq Composite recorded 45 new highs and 29

new lows.