Key Takeaways
- General Mills ($GIS) reported a surprise adjusted EPS of $0.95, significantly beating the $0.80 estimate, despite a massive $2.09 billion operating loss driven by non-cash impairment charges.
- Novo Nordisk ($NVO) launched its Medicare GLP-1 Bridge program, allowing eligible beneficiaries to access Wegovy for a $50 monthly copay through the end of 2027.
- Geopolitical risks intensified as the UKMTO reported an armed approach on a tanker off Balhaf, Yemen, involving a small craft armed with a rocket-propelled grenade (RPG).
- US economic outlook remains bullish with White House advisor Kevin Hassett forecasting 4% growth for the second half of 2026 as Hormuz Strait traffic begins to recover.
- AI investment continues to surge as Twelve Labs secured $100 million in funding from Amazon ($AMZN) and Nvidia-backed ($NVDA) funds to advance multimodal video AI.
Corporate Earnings & Market Moves
General Mills (GIS) delivered mixed fiscal fourth-quarter results this morning. While the company posted a staggering operating loss of $2,092.6 million and a GAAP EPS of -$3.74, the figures were skewed by significant one-time items. On an adjusted basis, the company outperformed expectations with an EPS of $0.95 on sales of $4.61 billion, slightly ahead of the $4.595 billion consensus. Investors are closely watching the company's 34.2% adjusted gross margin as it navigates a challenging consumer environment.
Citigroup analysts have lowered their price target for Northrop Grumman (NOC) to $587 from $628, though they maintained a Buy rating. The adjustment reflects a more cautious stance on defense contractor valuations amid shifting budget priorities. Despite the target cut, the firm remains optimistic about the long-term demand for advanced defense systems.
Healthcare & Innovation
Novo Nordisk (NVO) reached a major milestone in patient access today with the launch of the Medicare GLP-1 Bridge program. This initiative makes Wegovy accessible to eligible Medicare beneficiaries living with obesity for a $50 monthly copay. The program is scheduled to run through December 31, 2027, providing a critical affordability bridge for seniors until broader legislative coverage changes take effect.
In the technology sector, Twelve Labs announced a $100 million funding round supported by Amazon (AMZN) and venture funds backed by Nvidia (NVDA). The startup specializes in multimodal AI that can "understand" video content, a sector seeing rapid growth as enterprises seek to automate video analysis. This capital injection underscores the continued dominance of the "AI arms race" in private equity markets.
Geopolitics & Macroeconomics
The United Kingdom Maritime Trade Operations (UKMTO) issued a warning after a small craft approached a tanker at 2 nautical miles on the port side, approximately 85 NM off Balhaf, Yemen. Reports indicate the craft was carrying four individuals and was armed with an RPG. While the crew and vessel are safe and continuing their journey, the incident highlights persistent risks in the Gulf of Aden.
In Europe, President Volodymyr Zelenskiy arrived in Ireland as Dublin officially assumes the Presidency of the EU Council. Zelenskiy is expected to lobby for accelerated EU accession talks and continued military aid. Meanwhile, UK Prime Minister Keir Starmer reaffirmed that any Labour government would remain committed to the national Defense Investment Plan, aiming to modernize the UK's armed forces.
On the domestic front, the Mortgage Bankers Association (MBA) reported that mortgage applications remained flat for the week ending July 1. The 30-year fixed mortgage rate saw a marginal decline to 6.57% from 6.59%. The stabilization of rates suggests a period of cooling in the housing market as buyers wait for clearer signals from the Federal Reserve.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.