* Indexes down: Dow 0.18%, S&P 500 0.27%, Nasdaq 0.16%
* Uncertainty over US-Iran war grips markets
* Apple ( AAPL ) names hardware veteran Ternus as new CEO to
succeed Cook
* UnitedHealth ( UNH ) gains after raising FY profit outlook
(Updates with late morning trading)
By Niket Nishant and Avinash P
April 21 (Reuters) - Wall Street's main indexes were
subdued on Tuesday, as renewed concerns about the Middle East
war halted an early rally in stocks and overshadowed earnings
optimism.
Pakistan is still awaiting a formal response from Iran to
confirm that it will send a delegation to attend a second round
of peace talks with the U.S. in Islamabad, the country's
Information Minister Attaullah Tarar said in a post on X.
The talks are scheduled against a fragile backdrop. In an
interview with CNBC earlier, U.S. President Donald Trump said he
does not want to extend the ceasefire with Iran, which is set to
expire soon.
A failure to resume the discussions could swiftly upend
investors' assumptions that peak uncertainty related to the war
has passed.
At 11:52 a.m. ET, the Dow Jones Industrial Average
fell 87.88 points, or 0.18%, to 49,354.68, the S&P 500
lost 19.21 points, or 0.27%, to 7,089.93 and the Nasdaq
Composite slipped 38.08 points, or 0.16%, to 24,366.32.
All the indexes were in positive territory earlier in the
session.
"Relief rallies only get you so far when the underlying
risks keep returning," said John Wyn-Evans, head of market
analysis at Rathbones.
WARSH HEARING IN FOCUS
Investors are also parsing comments from Kevin Warsh,
Trump's nominee to lead the Federal Reserve, whose confirmation
hearing was underway in the Senate on Tuesday.
He called for "regime change" at the U.S. central bank that
would include a new "framework" for controlling inflation and a
possible overhaul of how it communicates with the public about
monetary policy.
Republican Senator Thom Tillis has promised to block Warsh's
confirmation until the Department of Justice ends an
investigation into current Fed Chair Jerome Powell that Tillis
says threatens the central bank's independence.
The impasse could have far-reaching implications for
monetary policy, especially as Trump has vowed to fire Powell if
he does not leave when his term ends in May.
"The risk now is that if new leadership under Warsh does not
take hold by mid-June, the Fed could delay that 25 bps rate cut
and maintain a 'wait-and-see' stance instead," said Atakan
Bakiskan, U.S. economist at Berenberg.
EARNINGS, AI REASSURE INVESTORS
Optimism around AI and upbeat earnings have given investors
some reason to cheer.
J.P. Morgan raised its year-end target for the S&P 500,
citing AI and tech-driven earnings, while Amazon ( AMZN ) said
on Monday it will invest up to $25 billion in Anthropic,
signaling Big Tech is still willing to pour money into AI.
Amazon ( AMZN ) shares rose 1.8%, helping the S&P 500 consumer
discretionary sector advance 0.4%. Energy stocks
rose 0.5%, thanks to a jump in crude prices.
Of the 48 companies in the benchmark S&P 500 index that
reported earnings as of last Friday, 87.5% surpassed analysts'
estimates, compared with a long-term average of 67.4%, according
to LSEG data.
UnitedHealth ( UNH ) jumped 7.6% after the healthcare
conglomerate raised its annual profit forecast and beat Wall
Street expectations for the first quarter. The stock was the
biggest boost to the blue-chip Dow.
Peers CVS Health ( CVS ) and Humana rose 0.5% and
4.7%, respectively.
GE Aerospace fell 5.8%. The company said it was
bracing for a tougher backdrop of elevated oil prices, fuel
supply constraints and slower global growth.
Alaska Air ( ALK ) fell 3.2% as the airline withdrew its
full-year profit forecast.
Apple ( AAPL ) was among the other stocks under the
spotlight, falling 2.2%. The company said CEO Tim Cook would
hand over the reins to longtime hardware boss John Ternus.
Separately, data showed that U.S. retail sales increased
more than expected in March, while contracts to purchase
previously owned U.S. homes surpassed estimates.
Declining issues outnumbered advancers by a 1.83-to-1 ratio
on the NYSE and by a 1.65-to-1 ratio on the Nasdaq.
The S&P 500 posted 48 new 52-week highs and three new lows,
while the Nasdaq Composite recorded 135 new highs and 36 new
lows.