Market Update
Stock Movers: Alphabet, Chipotle Mexican Grill, IBM, ServiceNow
Scott Peters
24 Jul, 2025
New York City
Chipotle Mexican Grill Inc. dropped 12.0% to $46.51 after the fast-casual restaurant operator reported second-quarter results.
Revenue increased to $3.1 billion from $3 billion, net income declined to $436.1 million from $455.7 million, and diluted earnings per share inched down to 32 cents from 33 cents a year ago.
Comparable restaurant sales declined 4.0%, driven by a 4.9% drop in customer transactions and partially offset by a slight 0.9% rise in average ticket size.
Chipotle is expecting flat same-store sales for the full year compared to its previous guidance of an increase in low-single-digit growth, with plans to open 315 to 345 new company-owned restaurants, and over 80% will include a Chipotlane drive-thru.
The company also estimates a full-year effective tax rate between 25% and 27%, excluding any unusual tax items.
Total revenue grew by 3% to $3.1 billion, but comparable restaurant sales declined by 4%.
The operating margin narrowed to 18.2% from 19.7%, while the restaurant-level operating margin came in at 27.4%, down from 28.9%.
Diluted earnings per share dropped slightly to $0.32 from $0.33, and adjusted diluted EPS was 33 cents, down from 34 cents.
During the quarter, the company opened 61 new company-owned restaurants, with 47 of them featuring a Chipotlane drive-thru.
Alphabet Inc. increased 3.7% to $198.50, and the parent company of the Google search engine reported better-than-expected quarterly results.
Revenue in the second quarter rose 14% to $96.4 billion from $84.7 billion, net income advanced to $28.2 billion from $23.6 billion, and diluted earnings per share rose to $2.31 from $1.89 a year ago.
Google Services revenues increased 12% to $82.5 billion, reflecting strong performance across Google Search & other Google subscriptions, platforms, and devices, and YouTube ads.
Google Cloud revenues increased 32% to $13.6 billion, which includes revenues from cloud and AI-related services.
The company also lifted its spending outlook for the year, as the company ramped up its investment in cloud and AI infrastructure.
"We are increasing our investment in capital expenditures in 2025 to approximately $85 billion and are excited by the opportunity ahead,” said CEO Sundar Pichai.
IBM declined 6.6% to $263.24, and the technology company reported weaker-than-expected revenue in the second quarter.
Revenue in the second quarter increased to $16.97 billion from $15.77 billion, net income advanced to $2.2 billion from $1.8 billion, and diluted earnings per share rose to $2.31 from $1.99 a year ago.
In the first half of the year, IBM generated $6.1 billion in operating cash flow, which is slightly lower than last year. But free cash flow increased to $4.8 billion, up by $0.3 billion year-over-year.
IBM’s board has approved a regular quarterly cash dividend of $1.68 per share, which will be paid to shareholders on record as of August 8, 2025.
ServiceNow Inc. jumped 6.9% to $1,022.0, and the software company reported better-than-expected second-quarter results.
The company reported a 23% increase in revenue to $3.2 billion from $2.6 billion, net income advanced to $385 million from $262 million, and diluted earnings per share rose to $1.84 from $1.26 a year ago.
The company guided revenue in the third quarter to range between $3.26 billion and $3.265 billion, and for the full year to range between $12.775 billion and $12.795 billion, an increase of 20% from a year ago, respectively.
ServiceNow’s outstanding second-quarter results continue our long track record of elite-level execution,” said ServiceNow Chairman and CEO Bill McDermott.
Stock Movers: Alphabet, Chipotle Mexican Grill, IBM, ServiceNow
Scott Peters
24 Jul, 2025
New York City
Chipotle Mexican Grill Inc. dropped 12.0% to $46.51 after the fast-casual restaurant operator reported second-quarter results.
Revenue increased to $3.1 billion from $3 billion, net income declined to $436.1 million from $455.7 million, and diluted earnings per share inched down to 32 cents from 33 cents a year ago.
Comparable restaurant sales declined 4.0%, driven by a 4.9% drop in customer transactions and partially offset by a slight 0.9% rise in average ticket size.
Chipotle is expecting flat same-store sales for the full year compared to its previous guidance of an increase in low-single-digit growth, with plans to open 315 to 345 new company-owned restaurants, and over 80% will include a Chipotlane drive-thru.
The company also estimates a full-year effective tax rate between 25% and 27%, excluding any unusual tax items.
Total revenue grew by 3% to $3.1 billion, but comparable restaurant sales declined by 4%.
The operating margin narrowed to 18.2% from 19.7%, while the restaurant-level operating margin came in at 27.4%, down from 28.9%.
Diluted earnings per share dropped slightly to $0.32 from $0.33, and adjusted diluted EPS was 33 cents, down from 34 cents.
During the quarter, the company opened 61 new company-owned restaurants, with 47 of them featuring a Chipotlane drive-thru.
Alphabet Inc. increased 3.7% to $198.50, and the parent company of the Google search engine reported better-than-expected quarterly results.
Revenue in the second quarter rose 14% to $96.4 billion from $84.7 billion, net income advanced to $28.2 billion from $23.6 billion, and diluted earnings per share rose to $2.31 from $1.89 a year ago.
Google Services revenues increased 12% to $82.5 billion, reflecting strong performance across Google Search & other Google subscriptions, platforms, and devices, and YouTube ads.
Google Cloud revenues increased 32% to $13.6 billion, which includes revenues from cloud and AI-related services.
The company also lifted its spending outlook for the year, as the company ramped up its investment in cloud and AI infrastructure.
"We are increasing our investment in capital expenditures in 2025 to approximately $85 billion and are excited by the opportunity ahead,” said CEO Sundar Pichai.
IBM declined 6.6% to $263.24, and the technology company reported weaker-than-expected revenue in the second quarter.
Revenue in the second quarter increased to $16.97 billion from $15.77 billion, net income advanced to $2.2 billion from $1.8 billion, and diluted earnings per share rose to $2.31 from $1.99 a year ago.
In the first half of the year, IBM generated $6.1 billion in operating cash flow, which is slightly lower than last year. But free cash flow increased to $4.8 billion, up by $0.3 billion year-over-year.
IBM’s board has approved a regular quarterly cash dividend of $1.68 per share, which will be paid to shareholders on record as of August 8, 2025.
ServiceNow Inc. jumped 6.9% to $1,022.0, and the software company reported better-than-expected second-quarter results.
The company reported a 23% increase in revenue to $3.2 billion from $2.6 billion, net income advanced to $385 million from $262 million, and diluted earnings per share rose to $1.84 from $1.26 a year ago.
The company guided revenue in the third quarter to range between $3.26 billion and $3.265 billion, and for the full year to range between $12.775 billion and $12.795 billion, an increase of 20% from a year ago, respectively.
ServiceNow’s outstanding second-quarter results continue our long track record of elite-level execution,” said ServiceNow Chairman and CEO Bill McDermott.
S&P 500 and Nasdaq Hit New Record Highs After Alphabet Earnings and Trade-Talk Hopes
Barry Adams
24 Jul, 2025
New York City
Wall Street indexes fluctuated as investors reviewed the latest batch of earnings from leading technology companies.
The S&P 500 index edged up 0.1%, the tech-heavy Nasdaq Composite advanced 0.2%, and investors reviewed the latest quarterly results from IBM, Alphabet, ServiceNow, Tesla, and Chipotle Mexican Grill.
Tesla extended its decline after automobile segment revenue continued to decline for the second quarter in a row, driven by backlash from the company's chief executive, Elon Musk's, political activities.
On the economic front, initial weekly jobless claims fell for the sixth week in a row and fell to the lowest since April.
Jobless claims fell 4,000 to 217,000 in the week ending on July 19, and continuing claims inched slightly higher to 1.995 million in the week before.
The U.S. agreed to increase its import duties on Japanese goods to 12.5% from the current average of 3%, but lower than the threatened 25%.
The two sides agreed to a revised trade framework; however, details of the agreement and start date of the tariffs were not released.
Japanese officials confirmed that Japan will work to implement the revised trade agreement "as soon as possible" and asked the U.S. not to impose the 25% tariffs in the interim.
Moreover, the European Union officials are signaling a possible U.S. trade deal that could increase the tariff levels to 15%, confirming the TACO theory - Trump Always Chickens Out.
U.S. Stock Movers
Chipotle Mexican Grill Inc. dropped 12.4% to $46.21 after the burrito chain operator lowered its same-store sales outlook.
ServiceNow Inc. jumped 6.9% to $1,022.0, and the software company reported better-than-expected second-quarter results.
The company reported a 23% increase in revenue to $3.2 billion from $2.6 billion, net income advanced to $385 million from $262 million, and diluted earnings per share rose to $1.84 from $1.26 a year ago.
The company guided revenue in the third quarter to range between $3.26 billion and $3.265 billion, and for the full year to range between $12.775 billion and $12.795 billion, an increase of 20% from a year ago, respectively.
IBM declined 6.6% to $263.24, and the technology company reported weaker-than-expected revenue in the second quarter.
Revenue in the second quarter increased to $16.97 billion from $15.77 billion, net income advanced to $2.2 billion from $1.8 billion, and diluted earnings per share rose to $2.31 from $1.99 a year ago.
"With our strong first-half performance, we are raising our full-year outlook for free cash flow, which we expect to exceed $13.5 billion,” said Chairman, President, and CEO Arvind Krishna.
Alphabet Inc. increased 3.7% to $198.50, and the parent company of the Google search engine reported better-than-expected quarterly results.
Revenue in the second quarter rose 14% to $96.4 billion from $84.7 billion, net income advanced 19% to $28.2 billion from $23.6 billion, and diluted earnings per share rose 22% to $2.31 from $1.89 a year ago.
Google Services revenues increased 12% to $82.5 billion, reflecting strong performance across Google Search & other Google subscriptions, platforms, and devices, and YouTube ads.
Google Cloud revenues increased 32% to $13.6 billion, which includes revenues from cloud and AI-related services.
The company also lifted its spending outlook for the year, as the company ramped up its investment in cloud and AI infrastructure.
"We are increasing our investment in capital expenditures in 2025 to approximately $85 billion and are excited by the opportunity ahead,” said CEO Sundar Pichai.
S&P 500 and Nasdaq Hit New Record Highs After Alphabet Earnings and Trade-Talk Hopes
Barry Adams
24 Jul, 2025
New York City
Wall Street indexes fluctuated as investors reviewed the latest batch of earnings from leading technology companies.
The S&P 500 index edged up 0.1%, the tech-heavy Nasdaq Composite advanced 0.2%, and investors reviewed the latest quarterly results from IBM, Alphabet, ServiceNow, Tesla, and Chipotle Mexican Grill.
Tesla extended its decline after automobile segment revenue continued to decline for the second quarter in a row, driven by backlash from the company's chief executive, Elon Musk's, political activities.
On the economic front, initial weekly jobless claims fell for the sixth week in a row and fell to the lowest since April.
Jobless claims fell 4,000 to 217,000 in the week ending on July 19, and continuing claims inched slightly higher to 1.995 million in the week before.
U.S. Stock Movers
Chipotle Mexican Grill Inc. dropped 12.4% to $46.21 after the burrito chain operator lowered its same-store sales outlook.
ServiceNow Inc. jumped 6.9% to $1,022.0, and the software company reported better-than-expected second-quarter results.
The company reported a 23% increase in revenue to $3.2 billion from $2.6 billion, net income advanced to $385 million from $262 million, and diluted earnings per share rose to $1.84 from $1.26 a year ago.
The company guided revenue in the third quarter to range between $3.26 billion and $3.265 billion, and for the full year to range between $12.775 billion and $12.795 billion, an increase of 20% from a year ago, respectively.
IBM declined 6.6% to $263.24, and the technology company reported weaker-than-expected revenue in the second quarter.
Revenue in the second quarter increased to $16.97 billion from $15.77 billion, net income advanced to $2.2 billion from $1.8 billion, and diluted earnings per share rose to $2.31 from $1.99 a year ago.
"With our strong first-half performance, we are raising our full-year outlook for free cash flow, which we expect to exceed $13.5 billion,” said Chairman, President, and CEO Arvind Krishna.
Alphabet Inc. increased 3.7% to $198.50, and the parent company of the Google search engine reported better-than-expected quarterly results.
Revenue in the second quarter rose 14% to $96.4 billion from $84.7 billion, net income advanced 19% to $28.2 billion from $23.6 billion, and diluted earnings per share rose 22% to $2.31 from $1.89 a year ago.
Google Services revenues increased 12% to $82.5 billion, reflecting strong performance across Google Search & other Google subscriptions, platforms, and devices, and YouTube ads.
Google Cloud revenues increased 32% to $13.6 billion, which includes revenues from cloud and AI-related services.
The company also lifted its spending outlook for the year, as the company ramped up its investment in cloud and AI infrastructure.
"We are increasing our investment in capital expenditures in 2025 to approximately $85 billion and are excited by the opportunity ahead,” said CEO Sundar Pichai.
Japan Indexes Extend 2-Day Rally to 5% After U.S. Trade Agreement
Akira Ito
24 Jul, 2025
Tokyo
Japan's indexes advanced for the third consecutive session as the recently announced trade deal between the U.S. and Japan continued to support market enthusiasm.
The Nikkei 225 Stock Average increased 1.6%, the TOPIX gained 1.7%, and automobile makers led the gainers.
The U.S. agreed to increase its import duties on Japanese goods to 12.5% from the current average of 3%, but lower than the threatened 25%.
The two sides agreed to a revised trade framework; however, details of the agreement and start date of the tariffs were not released.
Japanese officials confirmed that Japan will work to implement the revised trade agreement "as soon as possible" and asked the U.S. not to impose the 25% tariffs in the interim.
Prime Minister Ishiba Shigeru said Japanese companies plan to invest $550 billion in the U.S., targeting semiconductor and pharmaceutical industries.
After the deal announcement, Japanese stocks extended a two-day rally to 5%, led by a rebound in vehicle makers and semiconductor equipment companies.
Despite the market euphoria, higher U.S. tariffs on goods from Japan are likely to drag down the Japanese GDP by 0.5% and as much as 1% when additional tariffs on Japan's key trade partner, China, are included.
On the economic front, the private manufacturing sector activities fell into a contraction in July, after expanding in the previous month.
The au Jibun Bank Japan Manufacturing PMI unexpectedly fell to 48.8 in July from June’s final reading of 50.1 and dropped to the lowest level in three months.
The downturn in manufacturing activities was driven by the lingering uncertainty about the U.S. tariff levels and weakness in export orders as businesses adopted a wait-and-see approach.
Japan Indexes and Stocks
The Nikkei 225 Stock Average gained 1.6% to 41,822.92, and the broader TOPIX advanced 1.7% to 2,975.50.
Toyota Motor Corp. decreased 0.4% to ¥2,844.50, Honda Motor Co. Ltd. inched higher 0.03% to ¥1,650.50, and Nissan Motor Co. Ltd. increased 1.6% to ¥334.50.
Renault India is expected to acquire the remaining 51% stake in the joint venture with Nissan and take full control of the plant in Chennai, Tamil Nadu.
Renault India is a wholly owned subsidiary of France's Renault Group.
Japan Indexes Extend 2-Day Rally to 5% After U.S. Trade Agreement
Akira Ito
24 Jul, 2025
Tokyo
Japan's indexes advanced for the third consecutive session as the recently announced trade deal between the U.S. and Japan continued to support market enthusiasm.
The Nikkei 225 Stock Average increased 1.6%, the TOPIX gained 1.7%, and automobile makers led the gainers.
The U.S. agreed to increase its import duties on Japanese goods to 12.5% from the current average of 3%, but lower than the threatened 25%.
The two sides agreed to a revised trade framework; however, details of the agreement and start date of the tariffs were not released.
Japanese officials confirmed that Japan will work to implement the revised trade agreement "as soon as possible" and asked the U.S. not to impose the 25% tariffs in the interim.
Prime Minister Ishiba Shigeru said Japanese companies plan to invest $550 billion in the U.S., targeting semiconductor and pharmaceutical industries.
After the deal announcement, Japanese stocks extended a two-day rally to 5%, led by a rebound in vehicle makers and semiconductor equipment companies.
Despite the market euphoria, higher U.S. tariffs on goods from Japan are likely to drag down the Japanese GDP by 0.5% and as much as 1% when additional tariffs on Japan's key trade partner, China, are included.
On the economic front, the private manufacturing sector activities fell into a contraction in July, after expanding in the previous month.
The au Jibun Bank Japan Manufacturing PMI unexpectedly fell to 48.8 in July from June’s final reading of 50.1 and dropped to the lowest level in three months.
The downturn in manufacturing activities was driven by the lingering uncertainty about the U.S. tariff levels and weakness in export orders as businesses adopted a wait-and-see approach.
Japan Indexes and Stocks
The Nikkei 225 Stock Average gained 1.6% to 41,822.92, and the broader TOPIX advanced 1.7% to 2,975.50.
Toyota Motor Corp. decreased 0.4% to ¥2,844.50, Honda Motor Co. Ltd. inched higher 0.03% to ¥1,650.50, and Nissan Motor Co. Ltd. increased 1.6% to ¥334.50.
Renault India is expected to acquire the remaining 51% stake in the joint venture with Nissan and take full control of the plant in Chennai, Tamil Nadu.
Renault India is a wholly owned subsidiary of France's Renault Group.
China Indexes Traded at Multi-Year Highs Amid Rising Prospects of U.S. Trade Deal
Li Chen
24 Jul, 2025
Hong Kong
Stock market indexes in China and Hong Kong extended gains, and they traded near 40-month highs amid improving sentiment for trade agreements.
The Hang Seng index increased 0.6%, and the mainland-focused CSI 300 index gained 0.5%, as investors hoped that the U.S.-China trade agreement is more likely as early as this week.
The U.S. and Japan agreed to a revised trade framework that will increase import duties on Japanese goods to 12.5% from the current 2.5%.
However, no start date for the revised tariffs has been set.
Meanwhile, the U.S. president and Japan promoted the trade agreement as "the largest deal," but the new proposed tariffs significantly put additional burden on international trade.
The Trump administration had threatened 25% tariffs on Japanese goods starting August 1, but as in the past, the U.S. president always backed down from his initial bold threats.
China Indexes and Stocks
Stocks advanced following gains in overnight trading in New York, after the U.S. president claimed a trade agreement with Japan and signaled progress in talks with the European Union.
The Hang Seng index advanced 0.6% to 25,688.87, and the mainland-focused CSI 300 index added 0.5% to 4,138.47.
Electric vehicle makers advanced in the hopes that the U.S.-China agreement is more likely ahead of the deadline next week.
Li Auto Inc. increased 0.5% to HK $120.10, BYD Class H advanced 0.4% to ¥123.50, and Xpeng Inc. gained HK $76.10.
SMIC jumped 4% to HK $50.70, SenseTime Group inched up a fraction to HK $1.60, and Xiaomi Corp. edged down 0.1% to HK $58.40.