Key Takeaways
- S&P 500 rises as a 4.2% drop in WTI crude prices pulls yields lower, offsetting a continued selloff in the semiconductor sector.
- Ford (F) raised its full-year adjusted EBIT guidance to a range of $10B–$11B after beating Q2 earnings expectations, despite a $3.6B charge related to its BlueOval SK joint venture.
- Visa (V) reported resilient consumer and business spending, with Q3 revenue of $11.6B beating estimates and cross-border volume growing 13%.
- Seagate (STX) shares surged on a massive Q1 outlook, forecasting revenue up to $4.2B driven by robust demand for cloud data center storage.
- The Trump administration plans to end Medicare drug plan subsidies, a move that could lead to higher premiums for seniors and impact healthcare sector dynamics.
The S&P 500 edged higher on Tuesday as a significant retreat in energy prices provided a cushion for the broader market, even as the Nasdaq 100 flirted with a technical correction. Brent crude posted its worst three-day stretch since 2020, while WTI fell 4.2% to $79.15, dragging Treasury yields lower ahead of the Federal Reserve's upcoming policy decision. While the Dow Jones Industrial Average rose 1%, chipmakers faced their worst month since 2002, despite Nvidia (NVDA) CEO Jensen Huang's defense of open-weight AI models.
Ford Motor Co. (F) delivered a strong Q2 performance, reporting adjusted EPS of $0.42, beating the $0.36 estimate. The automaker raised its full-year adjusted EBIT guidance to $10.0B–$11.0B and increased its free cash flow outlook to $6B–$7B. While the Ford Blue (gasoline) and Ford Pro (commercial) divisions remained highly profitable, the Model e (EV) unit reported a narrower-than-expected EBIT loss of $919 million.
Visa (V) signaled continued strength in the global economy, reporting Q3 adjusted EPS of $3.32 on revenue of $11.6 billion. The payments giant noted that consumer and business spending remains "resilient," supported by a 10% increase in payments volume. Despite the beat, the company projected full-year revenue growth at the "low-end of low-teens," suggesting a slightly more cautious outlook for the remainder of the year.
Seagate Technology (STX) emerged as a standout performer in the tech sector, issuing Q1 revenue guidance of $4.0B–$4.2B, far exceeding the $3.79B consensus. The company is benefiting from "robust cloud data center demand" and expects the momentum for mass capacity storage to be durable into 2027. NXP Semiconductors (NXPI) also beat Q2 estimates with adjusted EPS of $3.61, providing a Q3 outlook that largely aligned with or slightly exceeded analyst expectations.
In the consumer and industrial sectors, Mondelez (MDLZ) raised its organic net revenue growth forecast to "at least +2%" after beating Q2 estimates with adjusted EPS of $0.73. Conversely, PPG Industries (PPG) reported Q2 sales of $4.5 billion, beating estimates, but its adjusted EPS of $2.23 slightly missed the mark. Meanwhile, Air Canada (AC) saw its best day in 14 months, advancing 6.1% to C$25.74 on double its average trading volume.
On the geopolitical and regulatory front, the Trump administration announced plans to end subsidies for Medicare drug plans, which is expected to result in higher premiums for many seniors. In international news, Iran's Foreign Minister and the EU's High Representative held discussions regarding regional developments, as markets continue to monitor tensions in the Middle East alongside a cooling commodities complex.
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.