Wall Street and Europe Show Varied Earnings Results on July 22, 2025

On July 22, 2025, global financial markets faced a challenging earnings landscape shaped by corporate performance and U.S. trade policies. Wall Street experienced a mixed session, with the S&P 500 inching up 0.1% to a record high and the Dow Jones Industrial Average posting modest gains, while the Nasdaq Composite slipped 0.4%. In Europe, markets saw sharper declines, with the STOXX 600 index dropping and German equities recording their largest single-day fall in two months. An anticipated 0.3% decline in European second-quarter earnings, combined with tariff uncertainties, drove cautious investor sentiment across both regions.

In the U.S., corporate earnings showed a range of outcomes. Coca-Cola and Verizon surpassed expectations, supported by strong demand and strategic pricing, which kept their share prices stable. In contrast, General Motors suffered a $1 billion tariff-related loss, leading to an 8.1% stock price drop, while Lockheed Martin’s 80% profit plunge triggered an 11% decline in its shares. RTX cut its 2025 profit forecast due to tariff costs, resulting in a 1.6% share price drop. Philip Morris underperformed with lower-than-expected revenue, causing an 8.43% stock slump, while Tesla’s shares gained 1.1% in anticipation of its upcoming earnings. Analysts forecasted a 6.7% rise in S&P 500 second-quarter earnings, largely driven by the “Magnificent Seven” tech giants, expected to achieve a combined 14% profit increase.

European markets encountered similar hurdles, though the STOXX 600 technology sector stood out with a projected 26.5% earnings growth. Norsk Hydro, a Norwegian aluminum producer, reported a strong 33% rise in Q2 core profit to 7.8 billion Norwegian kroner ($766 million), fueled by higher aluminum and energy prices. However, disappointments prevailed elsewhere: Sartorius Stedim’s weaker-than-expected Q2 EBIT of 128.9 million euros ($150.7 million) led to a 10% share price drop, and Julius Baer’s 35% first-half profit decline to 295 million Swiss francs ($369.5 million) deepened negative sentiment. Lindt and Spruengli missed Q2 forecasts despite an improved sales outlook, resulting in a 7% share drop. Stellantis faced a 300 million euro ($351 million) tariff impact, while AstraZeneca announced a $50 billion U.S. investment plan by 2030 to mitigate tariff risks.

The earnings highlighted the significant toll of U.S. tariffs, particularly on manufacturing and defense sectors, with companies like General Motors, RTX, and Stellantis facing substantial costs. Meanwhile, strong performances from Coca-Cola, Verizon, and Norsk Hydro showcased resilience. A strengthening euro added pressure on European exporters, worsening the impact of underwhelming earnings. As the earnings season continues, investors are closely monitoring trade developments and their effects on global corporate profitability, with the technology sector’s strength providing a ray of optimism in a turbulent market.