Erase gains

Dow and S&P 500 erase gains as investors digest corporate earnings and tariffs

From CNN's John Towfighi

US stocks were mixed Thursday morning as investors assessed corporate earnings results and reckoned with President Donald Trump’s plan for sweeping tariffs on US trading partners.

The Dow turned into the red and fell 265 points, or 0.6%. The index was weighed down by construction equipment company Caterpillar (CAT), which tumbled 3.6% after it was downgraded by analysts at Morgan Stanley.

The S&P 500 dipped into the red and hovered near the flatline. The Nasdaq came off its highest levels but held onto gains and was up 0.5%.

Shares in Ralph Lauren (RL) were down 9% after the company posted strong earnings but warned of an uncertain outlook, citing risks from tariffs.

“While our consumer trends remain consistent with recent quarters, we continue to take a more cautious view on the second half of the year,” Justin Picicci, chief financial officer at Ralph Lauren, said on the company’s earnings call this morning. “This is largely based on the potential impact of tariffs and related industry-wide price increases in the US.”