The S&P 500 eked out a record-high close on Tuesday, following steep losses in General Motors and a gain in Tesla as investors focused on recent and upcoming quarterly reports and watched for signs of progress in U.S. trade discussions.

General Motors tumbled 8.1% after the automaker reported a $1 billion hit from tariffs to its quarterly results, adding more fuel to investor concerns about U.S. President Donald Trump's global trade policy. Shares of Ford fell about 1%.

Market Snapshot

The S&P 500 climbed 0.06% to end the session at 6,309.62 points. The Nasdaq declined 0.39% to 20,892.69 points, while the Dow Jones Industrial Average rose 0.40% to 44,502.44 points. NVIDIA fell 3%; Micron Technology fell 4%; Advanced Micro Devices fell 1%; SharpLink Gaming up 9%.

Market Movers

Tesla Motors climbed 1.1% a day before its quarterly report, while Alphabet, also reporting on Wednesday, rose 0.65%.

Lockheed Martin sank 11% after the defense contractor’s second-quarter earnings declined in a period that included a number of one-time charges. Lockheed reported earnings of $1.46 a share on sales of $18.2 billion. Included in the second quarter were charges amounting to $1.7 billion, or $5.83 a share.

Northrop Grumman jumped 9.2% as second-quarter earnings topped Wall Street estimates. The defense company posted earnings of $8.15 a share on sales of $10.4 billion; analysts had expected earnings of $6.84 on sales of $10.1 billion. Northrop’s earnings in the latest quarter included a gain of $1.04 a share from the sale of a training business.

D.R. Horton, the biggest home builder in the U.S., surged 17% after reporting fiscal third-quarter earnings and revenue that beat Wall Street estimates. The company said it “closed more homes than the high end of our guidance range, while maintaining a home sales gross margin of 21.8%.”

Kohl's was up 38%. The gains may be due to a short squeeze, when a number of bets against the stock start going bad. So-called short sellers make money when shares of their target company go down in price. But when the share price rises, they may be forced to buy the stock to cover their bearish bets. If the price continues to rise, more short sellers may be forced to buy the stock, increasing the share price even more. Kohl’s came into July with 53 million shares shorted, or about 47% of shares outstanding, according to FactSet.

Opendoor Technologies Inc fell 10% after the company, which buys and sells homes, closed up 43% at $3.21 on Monday. At one point during the session, shares soared as high as 121% to $4.97. The stock rose for six consecutive trading days and rallied 312% over that span, according to Dow Jones Market Data. An endorsement from activist investor Eric Jackson, founder of EMJ Capital, has helped lead to an explosion of retail interest in the stock.

Medpace soared 55% after the clinical research company reported better-than-expected second-quarter profit and raised its full-year outlook. Medpace said net new business awards were $620.5 million in the second quarter, up 13% from a year earlier.

Market News

Trump Says Trade Deal Struck with Japan Includes 15% Tariff

President Donald Trump on Tuesday said the U.S. and Japan had struck a trade deal that includes a 15% tariff that will be levied on U.S. imports from the country.

In a post on Truth Social, Trump said the deal would include $550 billion of Japanese investments in the United States.

Nvidia, Snowflake Invest in Reka AI's $110M Funding Round - Report

Sunnyvale, California-based startup Reka AI raised $110M in funding from investors including NVIDIA and Snowflake, a deal that more than triples the AI firm's valuation to more than $1B, Bloomberg News reported.

Reka, which makes large language models, or LLMs, was founded in 2022 by researchers from Alphabet's Google and Meta Platforms, Inc..

Amazon to Buy Startup Focused on AI Wearables

Amazon.com has reached a deal to buy San Francisco-based Bee, a startup making an artificial intelligence-enabled bracelet to listen in on and transcribe conversations.

Bee's $50 wristband can analyze and distill what it records to make summaries, to-do lists or other tasks. Amazon confirmed the deal on Tuesday following a post on LinkedIn by Bee CEO and co-founder Maria de Lourdes Zollo.