Pre-Markets Marginally Higher on Q2 Earnings

Pre-market futures are inching higher once again this morning. We are devoid major economic reports ahead of today’s open, but have plenty of quarterly earnings results, as you can see below. The Dow and the S&P 500 are both currently up +9 points, while the Nasdaq is +4 points. Bond yields continue to shrink away: +4.36% on the 10-year, +3.84% on the 2-year, and it look like we’ll once again stop talking about the 30-year bond yield, which is down to +4.94%.

Biggest Q2 Earnings Morning Thus Far

So many important companies reporting, so little time. Let’s spot-check a few key stocks and see how they’re trading in the pre-market:

General Motors GM posted modest beats on both top and bottom lines in its Q2 report this morning, with earnings of $2.53 per share outpacing expectations by +5.86% and revenues of $47.98 billion by +1.89%. The automaking giant also affirmed guidance, though North American earnings before inflation & taxes (EBIT) came in well below estimates; this is one American company to likely be most impacted by ongoing tariff policy. Shares are currently down -1.8%. 

Two major defense stocks also are out with Q2 results ahead of today’s open: Lockheed Martin LMT and Northrop Grumman NOC. While Lockheed posted a very strong +12.33% positive earnings surprise to $7.29 per share, Northrop’s $7.11 per share surpassed estimates by +5.96%. Yet it was NOC which outperformed on the top line by +2.94%, while LMT’s $18.2 billion on the top line was beneath the Zacks consensus. Thus, LMT is selling off -7% in the pre-market, whereas NOC is up +3%.

Perhaps the best earnings report this morning came from wide-ranging homebuilder (from entry-level to luxury) D.R. Horton DHI in its fiscal Q3 results: earnings of $3.36 per share outpaced the Zacks consensus by +15.86%, with $9.23 billion in quarterly revenues which zoomed past expectations by +5.13%. Shares are currently +6% for the homebuilder, cutting into its significant -25% loss in share value over the past year. 

Coca-Cola KO was mixed in its Q2 report ahead of the opening bell, with earnings of 87 cents per share bettering the 83 cents analysts were expecting, though its revenues of $12.54 billion came up a tad short of estimates, by -0.44%. Shares are down modestly on the news, but still up +12% year to date. 

Sherwin-Williams SHW, the popular American paints and coatings company, missed on its bottom line by -10.11% to $3.38 per share, while revenues of $6.31 billion in quarterly revenues came in slightly ahead of estimates, by +0.49%. Shares care down -4% on the news, dragging the shares into negative territory year to date.

What to Expect from the Stock Market Today

After the market closes this afternoon, we’ll look for three more key earnings reports, from Texas Instruments TXN, Capital One COF and Intuitive Surgical ISRG, among others. While the Texas chipmaker expects double-digit growth on both top and bottom lines, the credit card issuer expects gains on both over +20%. The Zacks Rank #2 (Buy)-rated medical devices innovator looks for +8% earnings growth and +16.8% on revenues.

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This article originally published on Zacks Investment Research (zacks.com).

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