Positive Earnings Boost S&P 500 While Mixed Economic Data Emerge

Stocks mainly rose due to strong earnings reports. Tapestry soared over 12%, and YUM! Brands and Hershey also saw significant gains. However, Qualcomm, Ford, and Skyworks faced declines, raising concerns about market demand. Investors are on alert for upcoming economic indicators.

Date: 07-02-2025

AI Rating: 6

Earnings Per Share (EPS)
Tapestry led gains, with a Q2 adjusted EPS of $2.00, surpassing expectations of $1.75, and raised its FY adjusted EPS forecast to $4.85-$4.90. Similarly, Philip Morris International reported a Q4 adjusted EPS of $1.55, outperforming the consensus of $1.49. YUM! Brands also exceeded forecasts with a +1.00% increase in comparable sales, above the +0.68% consensus.

Net Income
Hershey Co. reported better-than-expected Q4 net sales of $2.89 billion versus an estimated $2.84 billion. Additionally, Intercontinental Exchange exceeded projections with Q4 EPS of $1.52, higher than the consensus of $1.49. TTM Technologies reported Q4 net sales of $651.0 million, above the expected $630.3 million.

On the downside, Qualcomm's outlook raised concerns as forecasts for Q2 total licensing revenue were below expectations. Ford Motor Company warned of a potential profit decline due to lower vehicle prices. Skyworks Solutions experienced a significant drop due to intensified competition in the semiconductor industry.

Market Impact
The mixed earnings results and their corresponding stock performance will significantly impact investor sentiment and stock prices in the near term. Companies positively surprising the market could enhance their stock values due to increased confidence and projections for future performance. Conversely, the warnings from companies like Ford and Qualcomm may lead to a bearish market sentiment in the technology and automotive sectors.

Stocks: TPR YUM HSY PM ICE TTMI F QCOM SWKS