Stock market today: Dow, S&P 500, Nasdaq trim losses as Wall Street grapples with tariff gloom

Lennar stock fell as much as 4% on Friday after the homebuilder’s projected quarterly orders fell short of estimates due to a housing market that remains challenged by higher interest rates and uncertainty about the economic outlook.

The company said new orders for the current quarter would fall in a range of 22,500-23,500, lower than analysts’ estimated average of 23,800 homes.

Elevated interest rates and economic uncertainty drove the builder to reduce the average sales price, after incentives, to $408,000, marking a 1% decline from last year.

“While underlying demand for homes remains strong, actionable demand is limited by affordability and credit, which remain challenged by limited funds for down payments as well as income qualification for a mortgage,” Lennar’s CEO Stuart Miller told analysts and investors on the company’s first fiscal earnings call Friday morning.

As the spring selling season gets underway, Lennar highlighted that February saw a lack of “seasonal pickup,” prompting the builder to focus on adjusting incentives to drive activity. The builder implemented sales incentives of 13% this quarter, about 700 basis points above normal.

Mortgage rates have drifted lower this year from their highs of 7% but stagnated around 6.6%, giving prospective buyers little relief.

Executives said “all markets around the country require incentives to assist buyers in the current home buying environment.”

The major averages pared losses on Friday after President Trump indicated “flexibility” when it comes to a reciprocal tariff plan expected on April 2.

While speaking to reporters at the Oval Office the president said: “I don’t change. But the word flexibility is an important word. Sometimes there is flexibility. So there’ll be flexibility.”

By 12:55 p.m. ET, the Dow Jones Industrial Average (^DJI) was down 0.1%, while the S&P 500 (^GSPC) trimmed earlier losses to decline 0.2%. Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) flipped into green territory to hover above the flat line.

Micron Technology stock (MU) dropped more than 8% on Friday morning as a margins miss overshadowed better-than-expected sales results.

The company’s fiscal second quarter results beat expectations, but its margin came in at 37.9% in the second quarter, below analyst estimates of 38.4%. Micron’s forecast for the current quarter came in at roughly 36.5%, also below expectations.

The company posted revenue of $8.05 billion versus estimates of $7.91 billion and adjusted earnings per share of $1.56 compared to expectations of $1.43 per share.

Boeing stock (BA) jumped over 5% in midday trading after President Trump awarded the plane maker the contract to build the US Air Force’s next-generation fighter jet, known as Next Generation Air Dominance, according to sources reported by Reuters.

Boeing beat out Lockheed Martin (LMT), whose F-22 Raptor will be replaced by Boeing’s fighter jet. Lockheed Martin stock fell 4% on the news.

The contract gives Boeing a much-needed boost, as the company has been plagued by safety issues, including a door plug blowout in early 2024, production issues, worker strikes, and aircraft delays.

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Yahoo Finance’s Brian Sozzi reports:

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Yahoo Finance Jennifer Schonberger reports:

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As recession fears grow, many wonder how the housing market will react. While economic downturns bring uncertainty, history shows that the housing market can be robust.

A new analysis from First American reveals that past recessions don’t always spell doom for real estate. For instance, during the pandemic in 2020, home sales initially dropped due to the economic shutdown but quickly recovered due to record-low mortgage and strong demand.

The housing market’s performance depends on the causes of the recession and the Federal Reserve’s actions. The Fed typically lowers interest rates to stimulate growth, resulting in mortgage rates often declining, boosting house-buying power.

This week, the Fed held interest rates steady and maintained its stance on two rate cuts later this year. Mortgage rates have drifted lower from their higher of 7% but stagnated around 6.6%. This is partly due to the growing uncertainty over the potential impact of President Trump’s tariff policies.

“While recession fears loom, housing has proven resilient in past downturns. Rather than assuming a market crash, history suggests that lower mortgage rates could help support the housing market, just as they have in previous recessions,” First American economist Odeta Kushi wrote in a note to clients.

Yahoo Finance’s Brian Sozzi reports:

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US stocks pulled back on Friday as two big consumer bellwether stocks dropped to cap a volatile week.

The Dow Jones Industrial Average (^DJI) dipped 0.8%, while the S&P 500 (^GSPC) dropped 0.8%. The tech-heavy Nasdaq Composite (^IXIC) fell about 1%.

The S&P 500 and Nasdaq, both of which entered into correction territory recently, were trying to snap a four-week losing streak. Both major averages rallied earlier this week following the Federal Reserve’s rate policy meeting.

Investors await Trump’s trade policy less than two weeks away for more potential market catalysts. FedEx (FDX) and Nike (NKE) stocks fell on Friday on the heels of their quarterly results in reaction to tariff concerns and uncertainty.

London Heathrow Airport halted operations Friday due to a power outage caused by a nearby fire, stranding tens of thousands of passengers. Europe’s busiest airport will be closed all day in the largest disruption for the airport in two decades, Bloomberg reports.

Shares of British Airways parent International Consolidated Airlines Group (IAG.MC) and Air France-KLM (AF.PA) fell 1.5%, while Lufthansa stock (LHA.DE) dropped 1.3%.

Shares of US carriers Delta Air Lines (DAL), American Airlines (AAL), and United Airlines (UAL), which operate at Heathrow, also fell slightly in sympathy.

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Yahoo Finance’s Hamza Shaban writes in today’s Morning Brief:

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Similar to Nike’s (NKE) stock this morning, large-cap play FedEx (FDX) is getting run over premarket by 7%.

And similar to what Nike said on its earnings call about the macroeconomic backdrop being uncertain, FedEx CEO Raj Subramaniam offered this assessment:

“The current environment, however, is adding uncertainty to demand. We continue to work closely with our customers to help them adapt to this evolving market,” Subramaniam said.

The best the bulls can hope for is that early earnings reports like this (and the airlines two weeks ago) sound the alarm bells loud enough on demand, and their stocks get hit, leading to the bad macro news being priced in when earnings season kicks off broadly in late April.

Don’t underestimate a trade war, friends.

It looked like Nike (NKE) was going to get off easy last night with its earnings report.

The Street likes new CEO Elliott Hill and how fast he is moving to reset the company. Shares initially popped 5% after the numbers crossed the wires.

This morning, the stock is down 5% despite a lot of Wall Street cheerleading in various notes.

But investors were hit with a cold splash of reality on the earnings call: A big ship in Nike doesn’t turn overnight, especially against the backdrop of a global trade war.

The focus appears to be on Nike’s guidance for the current quarter for sales down by a mid-teens percentage, which came in worse than estimates. Margins will also be under pressure again due to tariffs and aggressive discounting to clear slow-selling styles.

All in, I dig what Hill is doing. it will just take a lot of time before it shows up in a quarter.

Chinese stocks dropped on Friday after a week of losses partially undoing a phenomenal rally driven by the Asian tech sector. Investor expectations are high with little to continue to fuel rocketing demand.

Bloomberg reports:

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