
Goldman Says European Profit Misses Are Punished Most in Decades
Members of the Stoxx Europe 600 Index that post lower-than-predicted earnings or profit warnings are lagging the benchmark by 2.3 percentage points on average, according to the Goldman data. That's the worst reaction in the bank's analysis as far back as 2005.
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Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Stocks today initially opened higher on strength in technology stocks, led by an +8% jump in Palantir Technologies after it reported stronger-than-expected profits and raised its full-year forecasts. Stocks have continued support from speculation that last Friday's dismal payroll and ISM manufacturing reports will prompt the Fed to cut interest rates. The chances of a Fed rate cut at the September FOMC meeting rose to 92% from 40% before the reports were released. The US trade deficit for June was smaller than expected, a positive factor for Q2 GDP. The June US trade deficit shrank to -$60.2 billion from -$71.7 billion in May, better than expectations of -$61.0 billion and the smallest deficit in 1.75 years. 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T-notes also have positive carryover support from last Friday's weaker-than-expected payroll and ISM manufacturing reports, which boosted the chance of a Fed rate cut at next month's FOMC meeting to 92% from 40% before the reports. European government bond yields today are moving higher. The 10-year German bund yield fell to a 1.5-week low of 2.601% and is down -0.2 bp to 2.622%. The 10-year UK gilt yield dropped to a 1-month low of 4.496% and is down -1.0 bp to 4.499%. The Eurozone July S&P composite PMI was revised downward by -0.1 to 50.9 from the previously reported 51.0. The UK July S&P composite PMI was revised upward by +0.5 to 51.5 from the previously reported 51.0. Swaps are discounting the chances at 13% for a -25 bp rate cut by the ECB at the September 11 policy meeting. 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GlobalFoundries (GFS) is down more than -10% to lead semiconductor stocks lower after forecasting Q3 adjusted EPS of 33 cents to 43 cents, the midpoint below the consensus of 42 cents. Also, KLA Corp (KLAC) is down more than -3%, and ARM Holdings Plc (ARM), Applied Materials (AMAT), and Lam Research (LRCX) are down more than -2%. In addition, Nvidia (NVDA), Advanced Micro Devices (AMD), Broadcom (AVGO), Microchip Technology (MCHP), Marvell Technology (MRVL), and ON Semiconductor Corp (ON) are down more than -1%. Fidelity National Information (FIS) is down more than -9% after forecasting Q3 adjusted EPS of $1.46-$1.50, below the consensus of $1.54. Henry Schein (HSIC) is down more than -9% after reporting Q2 adjusted EPS of $1.10, weaker than the consensus of $1.19. Eaton Corp (ETN) is down more than -7% after forecasting full-year organic revenue of +8.50% to 9.50%, the midpoint below the consensus of 9.09%. Axon Enterprise (AXON) is up more than +17% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q2 net sales of $668.5 million, above the consensus of $640.3 million, and raising its full-year adjusted Ebitda forecast to $665 million-$685 million from a previous forecast of $650 million-$675 million. Palantir Technologies (PLTR) is up more than +7% after reporting Q2 revenue of $1.0 billion, stronger than the consensus of $939.3 million, and raising its full-year revenue forecast to $4.14 billion-$4.15 billion from a previous forecast of $3.89 billion-$3.90 billion. Pfizer (PFE) is up more than +5% after reporting Q2 revenue of $14.65 billion, higher than the consensus of $13.50 billion. Broadridge Financial Solutions (BR) is up more than +5% after reporting Q4 adjusted EPS of $3.55, stronger than the consensus of $3.50. Leidos Holdings (LDOS) is up more than +5% after reporting Q2 revenue of $4.25 billion, better than the consensus of $4.24 billion, and raising its full-year revenue forecast of $17.00 billion-$17.25 billion from a previous forecast of $16.90 billion-$17.30 billion. Cummins (CMI) is up more than +2% after reporting Q2 net sales of $8.64 billion, above the consensus of $8.46 billion. Archer-Daniels-Midland (ADM) is up more than +2% after reporting Q2 adjusted EPS of 93 cents, better than the consensus of 80 cents. Earnings Reports (8/5/2025) Advanced Micro Devices Inc (AMD), Aflac Inc (AFL), Amgen Inc (AMGN), Apollo Global Management Inc (APO), Archer-Daniels-Midland Co (ADM), Arista Networks Inc (ANET), Assurant Inc (AIZ), Ball Corp (BALL), Broadridge Financial Solutions (BR), Caterpillar Inc (CAT), Cummins Inc (CMI), DaVita Inc (DVA), Devon Energy Corp (DVN), Duke Energy Corp (DUK), DuPont de Nemours Inc (DD), Eaton Corp PLC (ETN), Expeditors International of Washington (EXPD), Fidelity National Information (FIS), Fox Corp (FOXA), Gartner Inc (IT), Henry Schein Inc (HSIC), International Flavors & Fragrances (IFF), Jacobs Solutions Inc (J), Leidos Holdings Inc (LDOS), Marathon Petroleum Corp (MPC), Marriott International Inc/MD (MAR), Match Group Inc (MTCH), Molson Coors Beverage Co (TAP), Mosaic Co/The (MOS), News Corp (NWSA), Pfizer Inc (PFE), Public Service Enterprise Group (PEG), Skyworks Solutions Inc (SWKS), Super Micro Computer Inc (SMCI), TransDigm Group Inc (TDG), Yum! Brands Inc (YUM), Zebra Technologies Corp (ZBRA), Zoetis Inc (ZTS). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on