Market Analysis: July 23, 2025
Canadian Markets
Canadian markets edged higher on Wednesday, showing resilience even as both gold and oil prices remained under pressure. Canadian prime minister, Mark Carney, stated that the country would not settle for a 'bad deal' regarding U.S. tariffs. With the August 1st deadline for new U.S. tariffs looming, negotiations between the two nations appear stalled, casting doubt on whether a last-minute agreement can be reached.
American Markets
U.S. stocks climbed after news broke that the United States and Japan had reached a trade agreement. The deal, seen as favorable for Japanese automakers, lifted sentiment broadly across global markets. Google and Tesla is set to report earnings after the closing bell. For Tesla, it is an event highly anticipated by investors given the stock's recent volatility and questions surrounding the company's margins, growth strategy, and delivery performance.
European Markets
European stocks moved higher on optimism that a similar trade deal could be struck between the U.S. and European Union, especially one that benefits European carmakers. Automakers led the gains across major indices in Europe.
Shares of German software giant SAP dropped, despite the company reporting a strong quarterly performance. Investors were disappointed that SAP chose to maintain its full-year guidance instead of raising it, dampening enthusiasm.
In the UK, stocks reached yet another all-time high, driven in part by strong performances from mining and industrial sectors. A record number of UK-listed companies issued profit warnings in the second quarter, raising red flags about the upcoming earnings season and potentially signaling broader economic challenges.
Corporate News
Alibaba Group Holding Ltd: Launched Qwen3-Coder, its most advanced open-source AI coding model. Designed for complex programming tasks, it's strong in autonomous coding workflows.
Amazon.com Inc: Acquired Bee, a startup making AI-enabled wristbands that transcribe and summarize conversations.
America Movil SAB de CV: Swung to a Q2 profit of 22.28 billion pesos, driven by 11 billion pesos in FX gains and reduced financing costs. Revenue rose 14% to $12.46B.
AT&T Inc: Beat Q2 profit estimates and added 401K wireless subscribers. Plans to invest $3.5B in fiber network using tax savings and raised free cash flow forecast for 2026–27 by $1B.
Baker Hughes Co: Beat Q2 estimates with EPS of $0.63 vs. $0.56 expected. Gas tech orders up 28%, though overall revenue declined 3% YoY to $6.91B due to weaker drilling activity.
Boeing Co: Offered union workers a 20% wage increase over 4 years, a $5K bonus, and more leave in its latest contract proposal.
Capital One Financial Corp: Q2 profit rose to $2.77B ($5.48/share) from $1.21B. Interest income surged 32.5% to $10B; loan loss provisions jumped to $11.43B.
Charter Communications Inc: Partnering with Comcast to launch an MVNO using T-Mobile's 5G network for business customers.
Chubb Ltd: Q2 core operating income rose 13% to $2.48B; record investment income ($1.57B) and underwriting performance. Combined ratio improved to 85.6%.
Coca-Cola Co: Jefferies raised target price to $84 (from $83) due to easing forex headwinds.
Comcast Corp: Partnering with Charter on an MVNO service for business customers using T-Mobile's network.
ConocoPhillips: In advanced talks to sell Oklahoma assets to Stone Ridge Energy for ~$1.3B.
Corpay Inc: To acquire UK-based Alpha Group for $2.2B, expanding into investment fund client segment.
CoStar Group Inc: Raised annual revenue forecast (now $3.14–$3.16B) due to strong Homes.com traffic and 65% quarterly jump in net new bookings.
Dassault Aviation: Raised concerns about the future of a trilateral fighter jet project due to disputes with Airbus over program control.
Delta Air Lines Inc: Facing scrutiny from U.S. senators over potential AI-driven ticket pricing. Denies using personal data for individualized fares.
Enphase Energy Inc: Forecast Q3 revenue of $330M–$370M, missing expectations. Q2 profit beat estimates despite gross margin pressure from Trump-era tariffs.
Equinor ASA: Q2 pre-tax profit dropped 13% YoY to $6.54B, in line with expectations. Maintains 2025 production and capex guidance.
EQT Corp: Q2 profit beat, raised production forecast to 2,300–2,400 Bcfe from 2,200–2,300. Benefits from higher gas prices and Olympus Energy acquisition.
Ford Motor Co: Industry group opposes Japan trade deal that lowers tariffs while maintaining higher ones on Canadian/Mexican autos.
Galaxy Digital Holdings Ltd: Jefferies initiates with a 'Buy' rating, $35 target; sees upside from crypto regulation and AI data center demand.
General Motors Co: Concerned about trade deal that gives Japan a tariff advantage over North American automakers.
Hilton Worldwide Holdings Inc: Raised full-year adjusted profit forecast to $7.83–$8/share, from $7.76–$7.94. Q2 EPS rose to $2.20 from $1.91.
Infosys Ltd: Narrowed annual growth forecast to 1%–3%. Q1 sales rose 7.5% to $4.89B; net profit rose 8.7% to 69.21B rupees.
Intuitive Surgical Inc: Beat Q2 estimates with EPS of $2.19 (vs. $1.92 expected); lifted gross margin forecast and expects lower tariff impact. Jefferies raised target to $550 (from $530).
Lockheed Martin Corp: Jefferies cut target to $460 from $500 after a $1.6B pretax loss tied to a classified aeronautics program.
Microsoft Corp: Initial SharePoint patch failed to fix major vulnerability exploited by Chinese groups. Released additional patches afterward.
Morgan Stanley: Under FINRA investigation for weak AML client screening across its wealth and institutional units.
PayPal Holdings Inc: Launched PayPal World for cross-border payments, in partnership with India's UPI, Mercado Pago, Tenpay Global, and Venmo.
SAP SE: Q2 sales and earnings rose, but stock fell as SAP kept FY guidance unchanged. Free cash flow jumped 83% to €2.36B, beating expectations.
TE Connectivity PLC: Beat Q3 estimates and issued upbeat Q4 guidance. Tariff impact was half of expected (1.5% vs. 3%). Forecast Q4 revenue ~$4.55B.
Texas Instruments Inc: Q3 guidance missed expectations. Cited tariff/geopolitical issues. Jefferies raised price target to $185 from $155.
UniCredit (Italy): Withdrew €15B bid for Banco BPM, blaming government interference.
Vale SA: Q2 iron ore output rose 3.7% to 83.6M tons. Sales fell 3.1% YoY, but strong performance from S11D and Brucutu mines supports 2025 goals.
Woodside Energy Group Ltd: Q2 revenue rose 8% to $3.28B, helped by Senegal's Sangomar project. Took write-downs on hydrogen and old offshore assets. Lowered production costs to $8–$8.50/boe.
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