Key Takeaways
- Bank of America (BAC) reported stronger-than-expected Q2 2025 earnings, with profit, Net Interest Income (NII), and Investment Banking revenue all topping estimates, while provisions for credit losses and expenses were lower than anticipated.
- US MBA Mortgage Applications plummeted by 10.0% for the week ending July 11, reversing the previous week's gain, as the 30-year mortgage rate edged up to 6.82%.
- Johnson & Johnson (JNJ) exceeded Q2 2025 earnings per share and revenue expectations, subsequently raising its full-year sales and adjusted operating EPS guidance.
- UNFI (UNFI) revised its full-year net sales guidance upwards to $31.6 billion to $31.8 billion, but narrowed its adjusted EBITDA outlook slightly downwards to $535 million to $565 million.
- ASML (ASML) shares fell in pre-market trading following weak revenue guidance for the next quarter and a narrowed 2025 outlook, citing tariff uncertainty.
Major financial institutions delivered mixed but generally positive earnings reports today, while key economic indicators showed a slowdown in US housing activity. Bank of America (BAC) led the banking sector with a robust Q2 2025 performance.
Bank of America (BAC) reported Q2 2025 earnings that surpassed analyst expectations across several key metrics. The bank's Net Interest Income (NII) reached $14.67 billion, exceeding the estimated $14.59 billion, and Investment Banking Revenue came in strong at $1.43 billion against an estimate of $1.27 billion. Loans increased to $1.15 trillion (est $1.12 trillion), and total deposits grew to $2.01 trillion (est $1.99 trillion). The bank's provision for credit losses was lower than expected at $1.59 billion (est $1.64 billion), contributing to the positive profit outcome.
In other banking news, PNC Financial (PNC) also posted a strong Q2 2025, with diluted EPS of $3.85 significantly beating the $3.54 estimate, and revenue of $5.7 billion topping the $5.6 billion forecast. Loans for PNC reached $326.34 billion, surpassing the $322.39 billion estimate, and provisions for credit losses were lower than anticipated at $254 million.
However, the US housing market showed signs of cooling, with MBA Mortgage Applications dropping by 10.0% for the week ending July 11, a sharp reversal from the prior week's 9.4% increase. This decline coincides with an uptick in the 30-year mortgage rate, which rose to 6.82% from 6.77%.
Healthcare giant Johnson & Johnson (JNJ) reported a successful second quarter, with adjusted EPS of $2.77 and sales reaching $23.748 billion, outperforming the $22.84 billion estimate. The company subsequently raised its full-year sales guidance to a range of $93.2 billion to $93.6 billion (previously $91 billion to $91.8 billion) and adjusted operating EPS to $10.63 to $10.73 (previously $10.50 to $10.70).
On the corporate guidance front, UNFI (UNFI) provided an updated outlook for its fiscal year, projecting net sales between $31.6 billion and $31.8 billion, an increase from its prior range of $31.3 billion to $31.7 billion. However, the company narrowed its adjusted EBITDA guidance to $535 million to $565 million, slightly down from the previous $550 million to $580 million.
Shares of ASML (ASML) experienced a pre-market dip of 8% after the company issued weak revenue guidance for the upcoming quarter and narrowed its 2025 outlook, citing ongoing tariff uncertainty. Ford Motor Co (F) announced a field service action for fuel injectors, estimating the cost at $570 million, which will be treated as a special item in its Q2 2025 results but will not impact adjusted EBIT.
In international economic news, South Africa's retail sales for May grew by 4.2% year-over-year, falling short of the 4.5% estimate and the revised 5.2% from the previous month. Month-over-month retail sales also saw a marginal increase of 0.1%, down from the revised 1.1% prior. The Bundesbank indicated that Germany's economy likely stagnated in the second quarter.
Diageo (DEO) shares gained 3.5% following reports that the company is set to replace its Chief Executive, Debra Crew. Geopolitical tensions also remain in focus, with Iran's Supreme Leader Khamenei stating that the US is an accomplice to Israel's crimes and claiming Iran's capability to inflict greater damage on enemies.
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.