TL;DR

UPS pulls outlook on tariff headwinds; PayPal beats but slips; Boeing revenue, cash flow improve.

Highlights

• UPS missed Q2 profit expectations, withdrew 2025 guidance citing macro uncertainty and tariffs; shares fell up to 4% pre-market 1.
• PayPal beat Q2 estimates and raised full-year profit outlook, but shares dropped 3–4% as transaction volumes continued to decline 2.
• Boeing reported Q2 revenue above forecasts, narrowed losses, and turned positive on operating cash flow 3.
• Merck announced a $3B cost-cutting plan with job cuts after Q2 revenue and profit declined; shares slipped ~1% 4.
• Novo Nordisk cut 2025 guidance as Wegovy sales lagged and competition increased; shares fell 12% in Copenhagen 5.
• Baker Hughes nears $13.6B all-cash deal for Chart Industries, outbidding Flowserve; Chart shares jumped 16.5% after hours 6.
• Spotify missed revenue and swung to a loss despite strong subscriber growth; shares fell ~6% pre-market 13.
• AstraZeneca beat Q2 sales estimates on strong cancer drug growth; maintained guidance and dividend 14.
• Philips raised 2025 profit margin outlook as US-EU tariff hit eased; new orders rose 6% 15.
• Barclays beat Q2 profit estimates and announced a £1B buyback 16.
• South Korea offered a $100B US investment package to avoid 25% tariffs; trade talks ongoing ahead of Aug. 1 deadline 9.
• EU pledged $750B in US energy purchases by 2028, but analysts question feasibility; US LNG stocks saw brief gains 10.

Commentary

Earnings this morning show a mixed picture for US equities. UPS ’s profit miss and withdrawal of 2025 guidance reflect ongoing macro and tariff pressures in logistics, with shares down pre-market 1. PayPal ’s earnings and raised outlook were overshadowed by declining transaction volumes, highlighting investor sensitivity to growth metrics in digital payments 2. Boeing ’s results were a relative bright spot, with better-than-expected revenue and improved cash flow, suggesting some stabilization in aerospace after prior supply chain issues 3.

Healthcare is a focus, with Merck launching a $3B restructuring and job cuts in response to falling revenue and looming patent cliffs 4, while Novo Nordisk’s sharp guidance cut on slower Wegovy sales and rising competition triggered a 12% drop in its shares—likely to weigh on sentiment for obesity and diabetes drug makers 5. AstraZeneca ’s beat, led by oncology, and Philips’ improved outlook on tariff relief, contrast with these headwinds and may support select healthcare and industrial names 1415.

Deal activity is notable: Baker Hughes is close to acquiring Chart Industries in a $13.6B cash deal, boosting both stocks after hours and signaling ongoing consolidation in energy infrastructure 6. On the macro front, South Korea’s $100B US investment proposal 9 and the EU’s $750B US energy pledge 10 are headline-grabbing but face skepticism on execution; they may drive volatility in LNG and industrials as details emerge, especially with tariff deadlines and trade negotiations in focus.

European banks (Barclays ) and industrials (Philips) posted solid results 1516, but Spotify ’s miss and loss despite strong user growth show that profitability remains under scrutiny in tech 13. With Asian markets opening lower and the dollar steady ahead of the Fed, traders should expect continued sector rotation and headline-driven moves, particularly in trade-sensitive and rate-sensitive names 17.