Key Takeaways
- ExxonMobil (XOM) and Chevron (CVX) both surpassed adjusted earnings per share estimates for Q2 2025, with ExxonMobil reporting $1.64 (vs. $1.54 est.) and Chevron $1.77 (vs. $1.71 est.).
- Kimberly-Clark (KMB) also beat adjusted EPS expectations, posting $1.92 against an estimated $1.68, despite a decline in net sales.
- Former President Trump has publicly urged the Federal Reserve to significantly cut interest rates, while the Fed has maintained its current rate of approximately 4.3% despite these calls, citing concerns over tariff-driven inflation.
- The UK Court of Appeal has upheld the validity of Moderna's (MRNA) EP'949 patent, confirming its infringement by Pfizer (PFE) and BioNTech's (BNTX) COVID-19 vaccine, Comirnaty.
- Italy's budget watchdog has reduced its GDP growth forecasts for 2025 and 2026 to 0.5% for both years, down from previous estimates, partly due to the impact of U.S. trade tariffs.
Oil and gas majors ExxonMobil (XOM) and Chevron (CVX) have reported stronger-than-expected second-quarter 2025 earnings, navigating a volatile energy landscape. ExxonMobil announced adjusted earnings per share (EPS) of $1.64, exceeding analyst estimates of $1.54. The company's net income reached $7.08 billion, surpassing the estimated $6.57 billion, on revenue of $81.51 billion, which also beat expectations of $80.77 billion. ExxonMobil aims to repurchase $20 billion in shares this year and distributed $9.2 billion to shareholders in Q2, including $4.3 billion in dividends and $5 billion in share buybacks.
Chevron reported adjusted EPS of $1.77, beating the estimated $1.71. However, its revenue and other income came in at $44.82 billion, below the estimated $46.75 billion. The company's net oil-equivalent production for the quarter was 3,396 Mboed. Chevron anticipates full-year production growth near the upper end of its 6% to 8% range, excluding Hess. The company expects affiliate dividends for Q3 to be between $700 million and $800 million, and Hess's capital expenditure for the second half of 2025 is forecast to range from $2 billion to $2.5 billion.
In the consumer goods sector, Kimberly-Clark (KMB) delivered a robust second quarter, with adjusted EPS of $1.92, significantly outperforming the estimated $1.68. Net sales for the quarter were $4.16 billion, and the company achieved a gross margin of 35%, with net income reported at $47 million.
Meanwhile, the political sphere continues to influence economic discussions. Former President Trump has reiterated his call for the Federal Reserve to "substantially" lower interest rates, stating that the Fed "should take charge" if rates remain high. Despite this pressure, the Federal Reserve has maintained its key short-term interest rate at approximately 4.3% for the fifth consecutive meeting this year. Federal Reserve Chairman Jerome Powell has indicated that keeping rates consistent positions the central bank to respond to inflationary pressures, particularly those driven by tariffs.
In legal and healthcare news, the UK Court of Appeal has confirmed the validity of Moderna's (MRNA) EP'949 patent, a decision that affirms an earlier High Court ruling. This patent is considered foundational to Moderna's mRNA technology and was found to be infringed by Pfizer (PFE) and BioNTech's (BNTX) COVID-19 vaccine, Comirnaty. This marks the first time a second-instance decision globally has upheld one of Moderna's core mRNA patents. Separately, the Trump administration has decided against a proposal for U.S. Medicare and Medicaid plans to cover weight loss drugs, with a spokesperson for the Centers for Medicare and Medicaid Services stating it is "not appropriate at this time." Medicare currently covers drugs like Ozempic and Mounjaro when prescribed for conditions like diabetes, but federal law generally prohibits coverage for weight loss.
On the international trade front, Fitch Ratings reported that European car makers' profits are facing pressure from tariffs and Chinese competition. Additionally, Italy's budget watchdog has reduced its GDP growth forecasts, now expecting 0.5% for both 2025 and 2026, down from previous estimates of 0.6% and 0.7% respectively. This downward revision factors in the impact of U.S. trade tariffs. India is also facing economic pressure as the United States under former President Trump has imposed a 25% blanket tariff on Indian exports, effective August 1. This move, which includes an unspecified penalty over India's purchase of Russian crude and military gear, is expected to significantly impact India's exports, particularly in textiles, telecom, pharmaceuticals, and gems.
In other corporate developments, Alphabet Inc. (GOOGL) reported changes in its holdings as of June 30, 2025, indicating it ended its investment in CrowdStrike (CRWD) and Desktop Metal Inc. (DM).
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.