Key Takeaways
- The Japanese Yen (USDJPY) has fallen to 150 against the U.S. Dollar for the first time since April 2, signaling continued weakness in the Japanese currency.
- Eli Lilly's (LLY) Mounjaro demonstrated significant heart-health benefits in a head-to-head trial against Trulicity, showing an 8% lower rate of major heart events and a 16% reduction in overall death rate. Despite these positive results, Eli Lilly shares dropped 4.9%.
- KKR (KKR) exceeded Q2 earnings estimates, reporting adjusted EPS of $1.18 against an estimate of $1.14, and declaring a regular dividend of $0.185/share.
- CVS Health (CVS) reported strong Q2 revenue of $98.92 billion, surpassing estimates of $94.50 billion, and raised its full-year adjusted EPS outlook.
- Ukraine's parliament approved a bill to reinstate anti-corruption authorities, a move aimed at addressing a significant political crisis and international pressure.
Global financial markets are reacting to a flurry of corporate earnings, significant pharmaceutical trial results, and ongoing geopolitical developments. The Japanese Yen has notably depreciated, while several major companies have released their second-quarter financial reports.
The Japanese Yen has reached 150 against the U.S. Dollar, a level not seen since April 2, indicating persistent pressure on the currency.
Eli Lilly and Company's (LLY) diabetes drug, Mounjaro, showed promising results in its SURPASS-CVOT Phase 3 trial, demonstrating cardiovascular protection. The trial revealed an 8% lower rate of major adverse cardiovascular events (MACE-3) and a 16% lower rate of all-cause death compared to Trulicity (LLY). Mounjaro also achieved greater reductions in A1C and weight. Despite these positive clinical outcomes, Eli Lilly's shares experienced a 4.9% decline.
Private equity firm KKR (KKR) announced a strong second quarter, with adjusted EPS of $1.18, exceeding the estimated $1.14. The firm's fee-related earnings reached $887 million, and its assets under management (AUM) stood at $686 billion, surpassing the estimated $680.51 billion. KKR also declared a regular dividend of $0.185 per share for Q2 and remains "highly constructive" entering the second half of the year, having raised $6.5 billion to invest in asset-backed finance.
CVS Health (CVS) reported robust second-quarter results, with total revenue of $98.92 billion, significantly higher than the estimated $94.50 billion. The company's adjusted EPS came in at $1.81, exceeding the IBES estimate of $1.46. CVS Health also raised its full-year adjusted EPS outlook to a range of $6.30 to $6.40, up from the previous estimate of $6.12. The medical benefit ratio increased to 89.9%, and the company recorded $833 million in litigation charges during the quarter.
Luxury sports car manufacturer Ferrari (RACE) reported its Q2 2025 earnings, with net profit at EUR425 million (estimated EUR426 million) and revenue at EUR1.79 billion (estimated EUR1.82 billion). Diluted EPS was EUR2.38 (estimated EUR2.40). The company's EBIT was EUR552 million (estimated EUR546 million) and EBITDA was EUR709 million (estimated EUR707.8 million). Deliveries for the quarter totaled 3,494 units (estimated 3,515).
Xerox (XRX) announced its Q2 results, with revenue of $1,576 million and a gross margin of 28.6%. The company reported an adjusted operating income of $59 million, but an adjusted EPS of -$0.64 and GAAP EPS of -$0.87.
Biogen (BIIB) also released its Q2 earnings, reporting EPS of $4.33 and adjusted EPS of $5.47, significantly exceeding the estimate of $3.86. Revenue for the quarter was $2,600 million, higher than the estimated $2,323 million. Biogen provided a full-year adjusted EPS outlook of $15.50-$16.00.
In other news, Klarna, the buy now, pay later lender, is reportedly preparing to revive its planned $15 billion New York stock market flotation in the autumn, after postponing it in April due to tariff-induced market turmoil.
Silver prices experienced a collapse yesterday following a risk-off attitude in most precious metals markets post-FOMC. Analysts suggest keeping an eye on the $35.50/oz level for support, with a potential flush out to $32/oz if that level fails to hold.
The European Union confirmed ongoing talks regarding a tariff exemption for wine and spirits. The EU Commission also stated its preparedness to collect demand from EU firms to purchase additional U.S. Liquefied Natural Gas.
Finally, Citigroup has raised its target price for Microsoft (MSFT) to $680 from $613 and for Meta (META) to $915 from $803.
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.