NEW YORK >> U.S. stocks ended lower today as investors weighed the impact of tariffs after Yum Brands and other companies cited trade duties in their results or outlooks.

The U.S. trade deficit narrowed in June on a sharp drop in consumer goods imports, and the trade gap with China shrank to its lowest in more than 21 years.

In addition, a measure of activity in the U.S. services sector hit stall-speed in July, with businesses saying new import taxes are pushing costs higher.

Shares of KFC parent Yum Brands fell 5.1% after the company missed estimates for the second quarter, as steep trade duties restricted consumer spending.

Caterpillar warned U.S. tariffs would pose significant challenges in the second half of the year and cost it up to $1.5 billion in 2025, but its shares ended up 0

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