Pre-Markets Up Again on Big News Morning
Pre-market futures are up at this hour on a bevy of new information this morning — from a vast array of earnings reports to key economic prints to a massive railway merger likely to pass its government board. The Dow is currently dipping a tad, +12 points, the S&P 500 is +11 points and the Nasdaq is +88 at this hour. The small-cap Russell 2000 is also up +12 points presently.
Trans-Continental Railway Deal Struck
In what would never have passed regulatory muster under the previous presidential administration, this morning we hear of a deal where Union Pacific UNP will be purchasing Norfolk Southern NSC for a reported price of $72 billion, or $320 per share. This would create the first-ever trans-continental railroad in the U.S.
Of course, this deal would first need to pass via the Surface Transportation Board, but President Trump is likely to see this deal as favorable for the U.S. (despite monopolistic considerations), and has the power to appoint a new member to the board who would view this merger as favorable, as well. Both UNP and NSC are lower on this announcement.
Trade Balance Eases on Tariff Outlook
The Advanced U.S. Trade Balance in Goods for June to a healthy pullback month over month to -$86 billion. This pullback is greater than expected, although it was led by a decline in imports (-4.2%),which analysts were looking toward. We're seeing a slow-down in trade based on higher tariff expectations; as deals are made with U.S. trading partners and tariff deadlines fade, we're thankfully well off the record-low trade balance of -$162 billion in March of 2025.
Q2 Earnings Roundup: Boeing, P&G, Spotify & More
So many companies reporting earnings, so little time! We'll pull together a quick roundup on this busiest day of Q2 earnings season so far:
Boeing BA continues to make improvements to its previously dire business situation: negative earnings in Q2 of -$1.24 per share improved over the Zacks consensus by 30 cents, or a +19.5% bottom-line surprise. On the top line, revenues of $22.75 billion outpaced estimates by +4.1%, as deliveries improved in the quarter. Shares are up another +1.4% in early trading, adding to its +33.6% gains year to date. For more on BA's earnings, click here.
UnitedHealth's UNH struggles continue, on the other hand, missing on its bottom line — $4.08 per share versus $4.84 expected — by -15.7%. Revenues of $111.6 billion eked out a beat over estimates by +0.06%. Guidance has been revised somewhat lower, and the -44.2% share price year to date is now another -3.3% in the pre-market. For more on UNH's earnings, click here.
It wasn't all bad news: Royal Caribbean RCL demonstrated strength in cruise-line business, and the company's earnings of $4.38 per share in the quarter surged past the Zacks consensus by +6.8%, even as revenues of $4.54 billion marginally missed projections. The stock's -6.7% sell-off ahead of the bell looks to be a bit of profit-taking, as RCL had been up +52.6% year to date. For more on RCL's earnings, click here.
But Spotify SPOT took a big slide on both top and bottom lines this morning, even as paying subscriptions and monthly active users grew. A negative -$0.48 per share swung to a loss from the +$2.13 Zacks consensus estimate, for a negative earnings surprise of -122.5%. Revenues of $4.76 billion came in lower than expected by -3.47%. Shares had been +56.7% year to date, but are -7.3% in pre-market at this hour. For more on SPOT's earnings, click here.
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