Key Takeaways
- Honeywell (HON) significantly beat Q2 earnings estimates with adjusted EPS of $2.75 and sales of $10.35 billion, prompting an upward revision of its full-year sales and adjusted EPS guidance.
- The EU has stated it has no intention to impose additional countermeasures before August 1st, while remaining in active tariff discussions with the US, which contributed to a positive sentiment in European stock markets.
- Tesla (TSLA) shares experienced a 6% decline post-earnings, as the company continues to face requests and subpoenas from regulators regarding its Robotaxi technology and anticipates a greater impact from current tariffs on its energy generation and storage business compared to its automotive segment.
- BP (BP) confirmed ongoing normal export operations through the BTC Pipeline at its Ceyhan Terminal, despite detecting organic chlorides in some tanks, with continuous sampling to ensure crude quality.
- Dow (DOW) reported a wider-than-expected Q2 loss with adjusted EPS of -$0.42 and revenue of $10.104 billion, missing analyst estimates amid industry oversupply and trade uncertainties.
EU-US Trade Relations Stabilize Ahead of August 1st Deadline
The European Union has signaled a period of calm in trade relations with the United States, with an EU Spokesperson stating there is no intention to bring additional countermeasures between now and August 1st. While remaining prepared for all scenarios, the spokesperson emphasized that the EU is still actively engaged in talks with the US regarding tariffs and believes a positive outcome is "within reach." This cautious optimism comes as US President Trump has indicated a willingness to offer lower tariffs to countries that agree to open up to US businesses, potentially setting the stage for a resolution. European stocks responded positively to these trade reports at the US market open.
Honeywell (HON) Delivers Strong Q2 Results, Raises Full-Year Outlook
Honeywell (HON) reported robust second-quarter 2025 earnings, surpassing analyst expectations for both profit and sales. The company posted adjusted earnings per share (EPS) of $2.75, exceeding the estimated $2.66, on sales of $10.35 billion, which also beat the $10.07 billion consensus. Following this strong performance, Honeywell raised its full-year sales guidance to a range of $40.8 billion to $41.3 billion (from $39.6 billion to $40.5 billion) and adjusted EPS to $10.45 to $10.65 (from $10.20 to $10.50). The company also reported Q2 adjusted free cash flow of $1.3 billion.
Tesla (TSLA) Faces Robotaxi Scrutiny and Tariff Headwinds
Shares of Tesla (TSLA) fell 6% post-earnings, as the electric vehicle and energy company continues to navigate regulatory challenges and tariff impacts. Tesla is reportedly receiving continuous requests, including subpoenas, from regulators and governments concerning its Robotaxi technology. The company also stated that the current tariff regime is expected to have a relatively larger impact on its Energy Generation & Storage business compared to its Automotive business. Tesla anticipates its fiscal year capital expenditures (Capex) to be above $9 billion, slightly below earlier estimates.
BP (BP) Confirms Normal Operations at Ceyhan Terminal Despite Chloride Detection
BP (BP) confirmed that it has taken action to manage tank issues and is continuing normal operations at its Ceyhan Terminal. The company reported the completion of tank inspections, which found organic chlorides in some tanks. Despite this, BP confirmed ongoing export operations through the BTC Pipeline and will continue sampling before each shipment at the Ceyhan Terminal to ensure crude quality. BTC Co. also finished checking crude oil quality at all pipeline facilities, with results confirming oil meets specifications up to the Ceyhan Terminal.
Dow (DOW) Reports Disappointing Q2 Earnings
Dow (DOW) announced a challenging second quarter, reporting revenue of $10.104 billion, which fell short of the $10.232 million estimate. The chemical giant posted a Q2 EPS of -$1.18 and a net income of -$801 million. Adjusted EPS came in at -$0.42, significantly wider than the -$0.17 estimate. The company's EBITDA for the quarter was $703 million. Dow cited industry oversupply and trade uncertainties as contributing factors to its financial deterioration.
UK CBI Trends Show Continued Weakness in Orders
The latest UK CBI Trends survey for July indicated a continued contraction in total orders, with a reading of -30, slightly worse than the estimated -28 and a marginal improvement from the previous -33. Selling prices saw an increase to 21 (estimated 20, previous 19), while business optimism remained negative at -27 (estimated -25, previous -33). This suggests ongoing challenges for UK manufacturers, though there are signs of stabilization in some areas.
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.