Daily summary: Wall Street mixed on earnings; euro gains on hints of ECB pause (24.07.2025)

Wall Street sentiment remains mixed as investors react differently to key earnings reports. The S&P 500 and Nasdaq are currently up around 0.3%, while the Dow Jones and Russell 2000 are down 0.4% and 1.1%, respectively.

IBM (IBM.US) posted mostly better-than-expected results, but weakness in its core software segment disappointed investors and raised concerns about the company’s ability to raise its revenue outlook for H2 2025. The stock is down 7.7%.

Honeywell (HONE.US) beat Q2 2025 expectations, reporting EPS of $2.75. Revenue rose 8% to $10.35 billion, driven by growth in the Building Automation and Defense segments, which held up despite margin pressures.

UnitedHealth (UNH.US) is down nearly 4% after the U.S. Department of Justice launched an investigation into its Medicare billing practices. The company faces allegations of potential fraud related to inflated diagnoses.

Chevron (CVX.US) received White House approval to continue oil production in Venezuela. The decision is part of broader U.S.–Venezuela negotiations, which also included a prisoner exchange.

PMI indicators for the U.S. sent mixed signals about private sector conditions. Growth came primarily from the services sector, where both employment and orders rose. In contrast, the manufacturing sector unexpectedly contracted (49.5 vs. 52.7 expected, prior 52.9) due to tariffs and rising labor costs.

New jobless claims again came in below expectations (217K vs. 227K forecast, prior 221K), aligning with the Fed’s narrative of a stable U.S. labor market.

The European Central Bank kept interest rates unchanged, in line with expectations (deposit rate at 2%). Inflation is seen as on track to meet the medium-term target, and Q2 economic activity exceeded forecasts thanks to strong exports ahead of new tariffs. ECB President Christine Lagarde said the current rate level is appropriate, and the bank may wait before any policy changes. Markets currently price in no rate cuts for 2025.

On the forex market, the euro is strengthening following a de facto pause in the easing cycle (EURUSD: +0.03% to 1.177, EURJPY: +0.2%, EURGBP: +0.5%, EURCHF: +0.2%). The U.S. dollar is firming mainly against safe-haven currencies like the franc (USDCHF: +0.3%) and the yen (USDJPY: +0.25%).

Precious metals are pulling back amid rising risk appetite. Gold is down 0.5% to $3,371/oz, silver down 0.55% to $39.07/oz, and platinum down 1% to $1,413/oz.

NATGAS is rebounding 0.9% after today’s EIA report, while Brent and WTI crude are trading relatively flat at $67.9 and $65.6 per barrel, respectively.

Cryptocurrencies are in the green: Bitcoin is up 0.9% to $119,400, Ethereum up 3.8% to $3,733. Gains are also seen in Chainlink (+3%), Ripple (+3.1%), and Polygon (+1.6%).