NEW YORK, April 15 (Reuters) - U.S. stocks edged lower on Tuesday afternoon as tariff uncertainty remained high and shares of consumer and healthcare companies eased, while upbeat bank results provided some support.
Quarterly results from companies including Bank of America (BAC.N), lifted financials (.SPSY), opens new tab.
Federal Register filings late on Monday showed the Trump administration was also proceeding with probes into imports of pharmaceuticals and semiconductors, as part of a bid to impose tariffs on the sectors.
In the healthcare space, shares of Merck & Co (MRK.N), were down 1.1%, while an index of semiconductors (.SOX), was up 0.5%. Johnson & Johnson's (JNJ.N), shares edged lower after the company missed estimates for sales of medical devices, despite beating Wall Street estimates for first-quarter revenue and profit.
"Earnings have been pretty good, but this is a market that's just beset by tariff and trade uncertainty and those are really the only catalysts that matter at this point," said Ross Mayfield, investment strategist at Baird in Louisville, Kentucky.
U.S. President Donald Trump has hinted at potential exemptions for the 25% tariffs imposed on imports of autos and auto parts, while Canada on Tuesday said it will allow some relief to domestically based automakers and manufacturers in specific sectors from counter-tariffs provided they meet certain conditions.
Barclays on Tuesday downgraded the U.S. autos and mobility sector, saying that Trump's tariffs could pressure automakers' earnings. Shares of Ford (F.N), were down 2.8%.
Amazon.com (AMZN.O), was down 1.9%, while the consumer discretionary sector (.SPLRCD), led declines among S&P 500 sectors.
The Dow Jones Industrial Average (.DJI), fell 77.73 points, or 0.19%, to 40,447.06, the S&P 500 (.SPX), lost 3.38 points, or 0.06%, to 5,402.59 and the Nasdaq Composite (.IXIC), lost 10.90 points, or 0.06%, to 16,820.59.
Stocks were mostly higher earlier in the day.
Bank of America topped estimates for first-quarter profit as interest income grew, and its shares were up more than 4%.
Earnings for the first quarter period have just begun, and changes in U.S. trade policy are expected to muddy the outlook for companies, with strategists expecting executives to be reluctant to give guidance.
Most analysts expect markets to remain volatile until there is more clarity on tariffs.
The S&P 500's 50-day moving average (DMA) slipped below the 200-DMA on Monday, producing a "death cross" pattern that suggests a short-term correction could turn into a longer-term downtrend.
Advancing issues outnumbered decliners by a 1.38-to-1 ratio on the NYSE. There were 43 new highs and 51 new lows on the NYSE.
On the Nasdaq, 2,294 stocks rose and 2,023 fell as advancing issues outnumbered decliners by a 1.13-to-1 ratio.
The S&P 500 posted one new 52-week high and one new low while the Nasdaq Composite recorded 25 new highs and 90 new lows.
The most heavily traded NYSE shares by volume were Bank of America Corp, Ford Motor Co and Pfizer Inc.
Reporting by Caroline Valetkevitch in New York Additional reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru; Editing by Shinjini Ganguli and Matthew Lewis
