Key Takeaways
- Serious credit card delinquencies (90+ days unpaid) have surged to 12.27% in Q2 2025, marking a 14-year high and indicating significant financial strain on U.S. consumers.
- Phillip Morris International (PM) reported robust Q3 2025 earnings, with adjusted EPS of $2.24 and revenue of $10.85 billion, both exceeding analyst expectations.
- Genuine Parts Company (GPC) posted mixed Q3 2025 results, as revenue of $6.3 billion surpassed estimates, but adjusted EPS of $1.98 slightly missed forecasts; however, the company raised its full-year sales outlook.
- European equities showed strength, with France's CAC 40 Index reaching a new record closing high, while S&P 500 futures initially erased losses to turn positive before a muted open.
- WTI crude oil is attempting to establish a double bottom near $56/bbl, suggesting a potential stabilization in prices, though a substantial rally is not widely anticipated.
A mixed picture emerged in financial markets today, with strong corporate earnings from major players contrasting with concerning trends in consumer debt. While global indices showed varied performance, the surge in credit card delinquencies highlights underlying economic pressures.
Consumer Debt Reaches 14-Year High
Serious credit card delinquencies, defined as accounts 90 or more days past due, have climbed to their highest level in 14 years, reaching 12.27% in the second quarter of 2025. This figure represents a notable increase from 10.93% in the same period last year and is just 1.4 percentage points shy of the all-time high recorded in Q2 2011. The rise in delinquencies extends beyond credit cards, with auto loan delinquencies at 5% and student loan delinquencies at 10.2%, collectively pointing to increasing financial stress among U.S. consumers. Lenders wrote off over $46 billion in seriously delinquent credit card loans in the first nine months of 2024, a 50% increase from the prior year and the highest since 2010. Total U.S. credit card debt has reached $1.209 trillion in Q2 2025.
Phillip Morris International Delivers Strong Q3 Earnings
Phillip Morris International (PM) announced robust third-quarter 2025 earnings, exceeding analyst expectations. The tobacco giant reported adjusted earnings per share (EPS) of $2.24, outperforming the estimated $2.11. Revenue also surpassed forecasts, coming in at $10.85 billion against an estimated $10.66 billion. The company affirmed it is on track to exceed its 2024-2026 growth targets and updated its full-year adjusted EPS guidance to a range of $7.46 to $7.56, slightly up from the previous $7.43 to $7.56. Phillip Morris also maintained its full-year organic revenue growth forecast at +8%, above the estimated +7.47%.
Genuine Parts Reports Mixed Q3, Raises Sales Outlook
Genuine Parts Company (GPC), a leading distributor of automotive and industrial replacement parts, reported mixed results for its third quarter of 2025. The company's adjusted EPS of $1.98 fell slightly short of the analyst consensus of $1.99. However, revenue for the quarter reached $6.3 billion, comfortably beating the estimated $6.13 billion. Despite the slight EPS miss, Genuine Parts raised its full-year sales guidance to an increase of +3% to +4%, up from its previous projection of +1% to +3%. The company also narrowed its full-year adjusted EPS outlook to $7.50 to $7.75, from its prior range of $7.50 to $8.00.
Global Indices See Varied Performance
European markets displayed strength, with France's CAC 40 Index surpassing its May 2024 record closing high. This positive movement contributed to a broader uplift in European equities. Meanwhile, in the U.S., S&P 500 Index futures initially erased earlier losses to turn positive, reflecting a fluctuating sentiment ahead of a muted open. Yesterday, the S&P 500 (^SPX) closed 0.92% higher at 6,725.42.
Crude Oil Attempts to Find a Bottom
WTI crude oil is currently holding a double bottom formation near $56/bbl, a technical pattern that suggests a potential stabilization in prices after recent declines. While this indicates the market may be attempting to set a bottom, analysts are not anticipating a significant rally from current levels. WTI crude futures were recently observed trading around $57.50 a barrel. The commodity had previously broken below the $60.00 psychological level, with the next major support identified around $55.00.
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.