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Trade Numbers Sink Near Record, Q2 Earnings Beats for PFE, BA & MCD

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Wednesday, July 28, 2021

We continue our parade of earnings results this Hump Day morning — and into the afternoon, when we looks forward to Facebook (FB - Free Report) earnings results after the closing bell — along with a new Advance Trade in Goods for June, which came out ahead of the regular trading session. We broke through expectations on Trade numbers, and saw the June headline came in at -$91.2 billion.

This is worse than the May report of -$88.1 billion, and nearly as bad as the record-low set in March of this year, -$91.9 billion. Exports were up +0.3% while Industrial Supplies rose +2.2%. Autos were +1.7% while Consumer Goods gained +0.7%. These figures were somewhat offset by a big -8.7% decline in Food, Feed and Beverages for the month.

The Federal Open Market Committee (FOMC) wraps its two-day policy meeting today, with an announcement at 2pm ET followed by a press conference with Fed Chair Jay Powell. We shall see if there is any nuance to the language used to address the potential tapering of asset purchases and perhaps even interest rates; neither is expected to bring any concrete changes to current policy.

Covid-vaccine supplier and Big Pharma staple Pfizer (PFE - Free Report) reported beats on top and bottom lines for its Q2 this morning, with $1.07 per share reported outpacing the Zacks consensus by a solid dime and a 10.3% surprise. Revenues posted an even stronger beat: $18.98 billion in the quarter bettered expectations by 8.2%. Covid vaccinations brought in $9 billion to the company in Q2.

Ex-vaccinations, company growth was still an admirable +10%. Oncology brought in $3 billion, +16%, of the nearly $19 billion in quarterly sales. As far as forecasts for the Covid vaccine, full-year expectations on the top line are for $33.5 billion (a raise from the earlier-expected $26 billion). The company also released positive data on the efficacy of a third-dose booster shot boosting antibodies versus the Delta variant of the coronavirus. For more on PFE’s earnings, click here.

Boeing (BA - Free Report) posted a surprise profit in Q2, and shares are up over 5% in pre-market trading as a result. Earnings of 40 cents per share was a big positive swing from the -65 cents expected. Revenues of $17 billion were slightly down but generally in-line with the Zacks consensus. The pick-up in 737 MAX sales is a big reason for the outperformance; commercial aircraft grew 270% year over year. Defense rose 4% to $6.88 billion for the quarter.

McDonald’s (MCD - Free Report) also surpassed expectations in its Q2 report this morning, with $2.37 per share beating the $2.12 consensus estimate by 11.8%. This is also nearly a 4x improvement from the year-ago quarter’s coronavirus-challenged 66 cents per share. Revenues of $5.89 billion represent a +4.59% surprise, with global same-store sales +40.5% in the quarter. U.S. comps gained 25.9% year over year. For more on MCD’s earnings, click here.

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