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Airlines drop after Jefferies downgrades on outlook

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PVH rises after upbeat annual forecast

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J&J falls after judge rejects $10 bln baby powder

settlement

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Recent IPO names CoreWeave ( CRWV ), Newsmax ( NMAX ) jump

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Indexes: Dow down 0.22%, S&P 500 up 0.12%, Nasdaq up 0.6%

(Updates to mid-afternoon trade)

By David French and Pranav Kashyap

April 1 (Reuters) - U.S. stock indexes struggled for

direction in topsy-turvy trade on Tuesday, initially bouncing

off session lows before losing some momentum into the afternoon

session, as investors awaited details on fresh U.S. tariffs set

to be announced on Wednesday.

Financial markets had been volatile in recent weeks as

investors assessed the economic fallout of U.S. President Donald

Trump's extensive tariff plans, which have sparked worries about

a U.S. economic slowdown and higher inflation.

The benchmark S&P 500 closed the first quarter 4.6%

lower, marking its most dismal three-month stretch since July

2022.

"The market is pricing in the worst-case scenario, and if we

aren't yet at washout levels then we're pretty close," said Gina

Bolvin, president of Bolvin Wealth Management Group in Boston.

"I wouldn't be a seller into this correction."

White House aides have drafted plans for 20% tariffs on most

goods imported to the United States, the Washington Post

reported on Tuesday. Trump is due to unveil his tariff plan at 4

p.m. EDT at an event in the Rose Garden on Wednesday.

After falling about 1% earlier, the S&P 500 gained ground

through support from beaten-down technology shares, before

momentum ebbed into the afternoon.

At 1:54 p.m. EDT, the S&P 500 had gained 6.92 points, or

0.12%, to 5,618.70 points.

Big tech names remained a source of support, led by Tesla

, which gained 6.4% ahead of its first-quarter vehicle

deliveries report on Wednesday.

Other Magnificent Seven stocks, including Amazon.com ( AMZN )

, Microsoft ( MSFT ), Nvidia ( NVDA ) and Meta Platforms ( META )

, rose between 0.5% and 1.7%.

The benchmark index, however, was weighed down by falls in

healthcare and airlines.

Johnson & Johnson ( JNJ ) fell 6.1%, the biggest percentage

drop in the S&P 500, dragging the broader healthcare sector

to the bottom of the 11 S&P sectors. A U.S. bankruptcy

judge rejected the company's $10 billion proposal to end tens of

thousands of lawsuits alleging that its baby powder and other

talc products cause ovarian cancer.

Meanwhile, Delta Air Lines ( DAL ), American Airlines ( AAL )

and Southwest Airlines ( LUV ) all dropped between 2.9%

and 5.8%, as Jefferies analysts downgraded stocks amid concerns

that economic uncertainty could disrupt both business and retail

travel demand.

The other two main stock indexes were mixed. The Nasdaq

Composite gained 104.64 points, or 0.60%, to 17,403.92

points, rising thanks to the same big tech names. However, the

Dow Jones Industrial Average fell 93.25 points, or 0.22%,

to 41,908.51 points.

In non-tariff news, investors appeared to look past data

that showed U.S. manufacturing contracted in March after

expanding for two consecutive months, while a measure of

inflation at the factory gate jumped to the highest level in

nearly three years amid rising anxiety over tariffs on imported

goods.

A labor report also showed job openings fell to 7.568

million in February.

Goldman Sachs on Monday raised the probability of a U.S.

recession to 35% from 20% and said it expects more U.S. interest

rate cuts this year.

Among single stocks, PVH Corp ( PVH ) climbed 18.7% after

the apparel maker's annual earnings forecast beat analysts'

estimates.

Technology outsourcing firm WNS Holdings ( WNS ) advanced

6.1% after Reuters reported it was exploring a sale after

attracting takeover interest.

Conservative news outlet Newsmax ( NMAX ) jumped 114%,

following a more than 700% surge in its NYSE debut on Monday.

CoreWeave ( CRWV ), which has had a more rocky start since

debuting as a public company on Friday, climbed 21.4% to trade

back above the IPO price of the artificial intelligence startup.