US STOCKS-Wall Street ends down slightly; tariff uncertainty keeps investors on edge

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Bank of America ( BAC ) gains after higher Q1 profit

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Uncertainty over the outlook for tariffs still high

(Recasts with preliminary close of trading)

By Caroline Valetkevitch

NEW YORK, April 15 (Reuters) - U.S. stocks ended slightly lower on Tuesday as tariff uncertainty stayed high and shares of consumer and healthcare companies eased, while upbeat results from banks provided some support.

Quarterly results from companies including Bank of America ( BAC ) and Citigroup ( C/PN ) lifted financials, which led S&P 500 sector gainers.

Still, bank executives warned that U.S. consumer spending faces huge risks if the upheaval sparked by President Donald Trump's trade policy goes on.

Federal Register filings 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.

Trump announced sweeping tariffs on April 2, sparking turmoil in the market and fueling worries about a global trade war and possible recession. Investors have been unable to focus on much else since then.

"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.

"On a day where you're bereft of those (catalysts), it's kind of a wayward market, and we're seeing that today."

Johnson & Johnson's ( JNJ ) shares ended lower after the company missed estimates for sales of medical devices, despite beating Wall Street estimates for first-quarter revenue and profit.

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 closed lower.

According to preliminary data, the S&P 500 lost 9.38 points, or 0.17%, to end at 5,396.59 points, while the Nasdaq Composite lost 10.30 points, or 0.06%, to 16,821.18. The Dow Jones Industrial Average fell 155.21 points, or 0.38%, to 40,369.58.

Also in the healthcare space, shares of Merck & Co ( MRK ) ended lower.

Bank of America ( BAC ) topped estimates for first-quarter profit as interest income grew, and its shares rose sharply.

Earnings for the first quarter period have just begun. Changes in U.S. trade policy are muddying the outlook for companies, and strategists expect executives to be reluctant to give earnings guidance.

Johnson & Johnson's ( JNJ ) chief executive said that tariffs on pharmaceuticals can create supply-chain disruptions and that favorable tax policies would be a more effective tool to boost U.S. manufacturing capacity of both drugs and medical devices.

Technical analysts are paying closer attention to their charts after the S&P 500's 50-day moving average 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. (Reporting by Caroline Valetkevitch in New York Additional reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru; Editing by Shinjini Ganguli and Matthew Lewis)

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