Key Takeaways
- Bank of England (BoE) holds interest rates at 3.75% in a 6-3 split vote, warning that inflation is expected to peak at 3.2% in Q4 2026.
- Bristol Myers Squibb (BMY) shares surged after reporting a significant Q2 revenue beat of $12.97 billion and raising its full-year EPS guidance to a range of $6.75 to $7.00.
- Ferrari (RACE) raised its full-year outlook following a strong Q2, with EBIT reaching €605 million, surpassing analyst estimates of €575.4 million.
- Yum! Brands (YUM) posted mixed results as Taco Bell saw a 7% jump in same-store sales, offsetting a 1% decline at Pizza Hut.
- The Hershey Company (HSY) delivered an earnings surprise with adjusted EPS of $1.90, well ahead of the $1.44 consensus estimate.
The Bank of England maintained its key interest rate at 3.75% today, following a divided 6-3 vote by the Monetary Policy Committee. While the majority opted for a hold, members Greene, Mann, and Pill voted for a quarter-point hike, citing fears of "material second-round effects" regarding inflation. The Bank’s central forecast now projects CPI to peak at 3.2% in the final quarter of 2026, with traders now pricing in 39 basis points of further hikes by year-end.
Bristol Myers Squibb (BMY) delivered a standout performance in the pharmaceutical sector, reporting Q2 revenue of $12.97 billion, crushing the $11.74 billion estimate. The company significantly boosted its full-year revenue guidance to $49 billion–$50 billion and raised growth expectations for its blockbuster drug Eliquis to 20%-25%.
In the luxury automotive space, Ferrari (RACE) continues to demonstrate pricing power and strong demand. The Italian automaker reported Q2 revenue of €1.94 billion and raised its full-year adjusted EBITDA guidance to at least €2.97 billion. Investors reacted positively to the beat in EBITDA (€755 million vs. €735.9 million estimated), signaling continued momentum in the high-end vehicle market.
Yum! Brands (YUM) reported adjusted EPS of $1.62, beating the $1.57 estimate, though total revenue of $9.17 billion slightly missed expectations. Performance was bifurcated across its portfolio; Taco Bell remained a powerhouse with 7% comparable sales growth, while Pizza Hut struggled with a 1% contraction. Worldwide system-wide sales grew by 3%, narrowly edging out the 2.89% forecast.
American Electric Power (AEP) and The Hershey Company (HSY) also updated the market with their latest figures. AEP raised its full-year operating EPS guidance to $6.25–$6.55 despite a Q2 earnings miss. Meanwhile, Hershey saw its net sales climb to $2.79 billion, prompting the confectioner to raise the lower end of its full-year net sales growth guidance to 4.5%–5%.
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.