Key Highlights
- The S&P 500 saw a slight increase of 0.1% on July 22, 2025, as earnings reports emerged, while investors braced for the significant tech revenue announcements ahead.
- Both Dr. Horton and Pultegroup exceeded their quarterly projections, leading to substantial gains in their stock prices.
- Lockheed Martin reported heavy losses tied to various programs, which negatively impacted stocks in the aerospace and defense sectors.
U.S. equity markets presented a mixed picture on Tuesday, as investors digested the latest earnings news and readied themselves for upcoming results from major tech firms.
The S&P 500 ticked up by 0.1%, marking its second consecutive session in the green. The Dow Jones climbed 0.4%, while the Nasdaq slipped by 0.4%, breaking a six-session winning streak.
Shares of IQVIA Holdings jumped 18%, making it the top performer on the S&P 500 for the day. The data analytics and clinical research firm released annual forecasts that surpassed second-quarter sales and profits, aided by a strategic focus on artificial intelligence. The company is set to introduce over 50 AI solutions in the third quarter.
Dr. Horton and Pultegroup both reported better-than-expected quarterly sales and earnings, with their stock prices soaring by 17% and about 12%, respectively. Despite these positive results, they acknowledged a soft sentiment among potential homebuyers, influenced by rising mortgage rates and affordability concerns. Dr. Horton’s executive chairman suggested that sales incentives might continue to rise through the year, while shares of Lennar also surged over 8%.
Northrop Grumman’s stock climbed 9.4% following positive revenue and profit announcements from the aerospace and defense sector. The growing demand for military aircraft, driven by geopolitical events, positions Northrop to benefit particularly from a focus on advanced missiles and drones in upcoming military budgets.
In contrast, Lockheed Martin’s earnings report was poorly received; its stock plummeted 11%, marking the largest decline in the benchmark index. The company reported $1.6 billion in losses from classified aviation and international helicopter initiatives, leading to a downward revision of its profit outlook as quarterly revenues fell short of expectations.
Philip Morris struggled to meet quarterly revenue forecasts, reflecting a persistent decline in cigarette demand. Although the company raised its full-year adjusted profit outlook, it lowered projections for cigarette and smoking-related shipments, causing its shares to drop 8.4% on Tuesday.
Meanwhile, MSCI surpassed its quarterly revenue and profit forecasts, benefiting from strong subscription revenues and increased asset-based fees; however, stocks of the financial data provider fell by around 9% despite this positive performance.
