U.S. stocks opened with a mixed tone Tuesday morning, as investors balanced cautious corporate earnings with ongoing uncertainty surrounding trade policy and currency markets. The Dow Jones Industrial Average edged up 37.85 points, or 0.09%, to 44,360.90, while the Nasdaq Composite slipped 28.26 points, or 0.13%, to 20,945.90. The S&P 500 was virtually flat, rising just 0.22 points to 6,305.82, and the Russell 2000, which tracks small-cap stocks, advanced 1.00 point, or 0.45%, to 222.43.

The subdued early action came amid a flurry of earnings releases that revealed growing sensitivity to both geopolitical risks and shifting consumer dynamics. Coca-Cola kicked off the morning with a mixed second-quarter report that beat earnings expectations but missed on revenue, sending its shares lower in premarket trading. The company posted earnings per share of $0.87, ahead of the $0.83 expected, while revenue came in at $12.5 billion, narrowly missing the $12.54 billion forecast. Despite a solid 5% rise in organic revenue and a 58% increase in net income, volume weakness and regulatory overhangs weighed on the results.

Global unit case volume declined 1% overall, with North America, Asia-Pacific, and Latin America all posting year-over-year declines ranging from 1% to 3%. Only the Europe, Middle East, and Africa region managed growth. CEO James Quincey pointed to inflation, economic concerns, and the growing influence of GLP-1 weight-loss drugs as key drivers behind the volume softness, particularly in sugary drinks.

Looking ahead, Coca-Cola reaffirmed its full-year organic revenue growth outlook of 5% to 6% and raised its earnings guidance to 3%, the top end of its prior range. However, the company flagged several near-term risks, including a 1%–2% currency headwind and a 5% hit to comparable EPS for the full year. Investors are also eyeing the potential cost implications of President Trump’s recent push to eliminate high fructose corn syrup from consumer products. While the company has not confirmed a change in formulation, Trump has publicly claimed Coca-Cola intends to shift to cane sugar—a move that could drive up input costs due to steep tariffs and constrained domestic supply. Such developments have cast a cloud over domestic margins, particularly as 40% of Coca-Cola’s revenue comes from the U.S. market.

Elsewhere in the corporate landscape, NXP Semiconductors delivered strong Q2 results but failed to meet the market’s high expectations. The chipmaker reported adjusted earnings of $2.72 per share on revenue of $2.93 billion, both figures topping consensus estimates. Guidance for the third quarter was also robust, with the company projecting revenue between $3.05 billion and $3.25 billion and adjusted EPS between $2.89 and $3.30. Still, shares fell nearly 5% in Monday’s after-hours trading.

The reaction underscored the high bar facing the tech sector this earnings season. NXP’s automotive division remained stable, accounting for 59% of total revenue. But declines of 11% in industrial, 4% in mobile, and 27% in communications infrastructure segments exposed broader margin pressures. Analysts noted that while management’s tone was optimistic—highlighting ongoing investment in autonomous driving and software-defined vehicles—the year-over-year revenue decline and contraction in gross margins raised concerns about saturation in key verticals.

The broader market is also contending with persistent dollar volatility. According to research from Apollo Global Management, the U.S. dollar depreciated more in the first half of 2025 than interest rate differentials alone would have predicted. Analysts attributed the breakdown in historical correlations to economic policy uncertainty, including concerns surrounding Section 899 and the so-called Mar-a-Lago Accord. Regression models presented by Apollo’s chief economist Torsten Slok indicated that these geopolitical factors played a more dominant role than interest rates in driving currency movements over the past six months.

However, there may be relief on the horizon. With Section 899 now resolved and a resolution to the trade war reportedly within reach, Apollo expects the dollar to begin appreciating again. Recent Treasury International Capital (TIC) data from May showed a strong rebound in foreign demand for U.S. assets, suggesting renewed confidence in American markets following Liberation Day.

Still, investors remain wary of trade policy developments. A report from Goldman Sachs noted that the Trump administration’s proposed tariff hikes—especially on copper, pharmaceuticals, and autos—could increase the effective U.S. tariff rate by up to 17 percentage points by 2027. Such moves are expected to lift core PCE inflation by 1.7% over the next two to three years while dragging GDP growth by nearly a full percentage point in 2025. The risks of further escalation remain elevated, with analysts cautioning that any additional tariffs could deepen the drag on capital expenditures and consumer spending.

With stocks hovering near record highs and corporate earnings facing tighter scrutiny, Tuesday’s early action reflects a market caught between resilient fundamentals and intensifying macroeconomic headwinds. As earnings season continues, investors appear increasingly sensitive not just to results, but to the broader policy and currency landscape shaping corporate performance.