Key Takeaways
- Major U.S. indices closed lower on July 31, 2025, with the Dow Jones Industrial Average falling 315 points (-0.71%) to 44,145.92, the S&P 500 down 21.07 points (-0.33%) to 6,341.83, and the Nasdaq declining 13.69 points (-0.07%) to 21,115.99.
- Amazon (AMZN) reported stronger-than-expected Q2 earnings with EPS of $1.68 on net sales of $167.7 billion, surpassing estimates, though its Q3 operating income projection fell short of analyst expectations.
- Coinbase (COIN) announced plans to launch tokenized stocks and predictions markets for U.S. users in the coming months, despite Q2 revenue of $1.50 billion missing estimates, while EPS of $5.14 significantly beat expectations.
- Reddit (RDDT) delivered a strong Q2 performance, reporting revenue of $500 million and EPS of $0.45, both well above analyst estimates, and provided an optimistic Q3 revenue outlook.
- Lumen Technologies (LUMN) posted a significant net loss of -$915 million in Q2, missing analyst estimates, citing a $46 million RDOF impact, but raised its full-year cash flow guidance due to a $400 million tax bill benefit.
U.S. equity markets concluded July 31, 2025, in negative territory, reflecting a mixed bag of corporate earnings and ongoing trade discussions. The Dow Jones Industrial Average saw the largest percentage drop, closing down 0.71%, while the S&P 500 and Nasdaq also registered declines.
Amazon (AMZN) was a focal point after its Q2 earnings report. The e-commerce and cloud giant exceeded expectations with EPS of $1.68 and net sales of $167.7 billion, outperforming analyst estimates of $1.33 and $162.1 billion, respectively. Its AWS sales also came in strong at $30.9 billion. However, the company's projected operating income for Q3 fell short of analysts' estimates, potentially contributing to market caution.
Cryptocurrency exchange Coinbase (COIN) made headlines with its Q2 earnings and a strategic announcement. While its Q2 revenue of $1.50 billion slightly missed the estimated $1.60 billion, the company posted a robust EPS of $5.14, significantly exceeding the $1.26 estimate. Coinbase also revealed plans to introduce tokenized stocks and predictions markets for U.S. users in the upcoming months, signaling an expansion of its offerings.
Social media platform Reddit (RDDT) reported a strong second quarter, with revenue reaching $500 million against an estimated $426 million, and EPS of $0.45 far surpassing the $0.19 estimate. The company's Daily Active Users (DAU) grew 21% year-over-year to 110.4 million, and its Q3 revenue outlook of $535M–$545M also exceeded analyst projections.
Telecommunications firm Lumen Technologies (LUMN) faced a challenging quarter, reporting a substantial net loss of -$915 million and an adjusted EPS of -$0.03, missing estimates. The company attributed a slight revenue miss to a $46 million RDOF impact from federal broadband funding delays. Despite this, Lumen raised its full-year cash flow guidance, citing a $400 million benefit from favorable tax legislation.
Other earnings reports included Illumina (ILMN), which posted Q2 revenue of $1.06 billion and adjusted EPS of $1.19, both slightly above estimates. Paramount Global (PARA) also delivered a positive Q2, with adjusted EPS of $0.46 and revenue of $6.85 billion, largely meeting or exceeding expectations. Its Paramount+ subscribers grew to 77.7 million, with streaming revenue up 23% year-over-year.
On the trade front, Commerce Secretary Lutnick indicated that talks with India, Canada, and China are progressing. He suggested a 90-day tariff truce extension with China is likely, though the final decision rests with the President. Regarding Canada, Lutnick hinted at potential tariff cuts if Prime Minister Carney cooperates.
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.