Delta leads travel rally; ILPT, GNS pop on payouts, while tariff headwinds hit Vertiv and cloud economic outlook.
Sectors & Industries
July 14, 2025
Table of Contents
Industrial Logistics Properties Trust (ILPT) surged 14% in a single session and closed the week up nearly 20% after its Board of Trustees announced a fivefold increase to its quarterly dividend—from $0.01 to $0.05 per share. The $0.20 annualized payout signals growing confidence in cash flow stability amid improving industrial REIT fundamentals.
GNS jumped 12.86% intraday and over 21% for the week after approving a 20% share repurchase program and confirming it had already bought back 1 million shares. The move comes amid ongoing restructuring efforts and aims to counter dilution concerns while reinforcing management’s long-term outlook.
Earnings season begins in full next week with JPMorgan, Goldman Sachs, and Bank of America leading a wave of reports. But expectations have been cut sharply. Since March, projected S&P 500 earnings for Q2 have dropped from $234 to $220 per share—a larger cut than usual. The main reason: growing concern over tariffs. Trump’s recent trade threats, including the now-expired July 7 “pause,” have caused uncertainty for global companies. Analysts warn that rising tariffs could take a real bite out of profits, especially in manufacturing, retail, and other trade-exposed sectors.
Slowing consumer spending is another issue. Since consumer activity drives most company revenue, weaker household demand is putting pressure on earnings. Signs of stress—from slower job growth to rising credit delinquencies—are beginning to show. The energy and materials sectors are already reflecting that, with profits down nearly 20% and 12% from last year, respectively. But tech continues to buck the trend. Companies like Nvidia, Microsoft, and Google are expected to post strong results, thanks to ongoing investment in AI and digital infrastructure, which are still going strong even as the rest of the economy cools.
Investors are reacting accordingly. Many are trimming riskier positions and adding to steady, dividend-paying names like Procter & Gamble, Berkshire Hathaway, and Visa. After a sharp rebound in stocks in June, expectations are high—possibly too high. If companies miss earnings or guide lower for the rest of the year, stocks could drop quickly. That’s why investors will be listening closely not just to the numbers, but to the tone of executive commentary. Any hint of caution from big players like TSMC, Johnson & Johnson, or Netflix could move markets.
Q2 is shaping up as a test of how much longer tech can hold up the market while the rest of the economy slows. Trade policy, interest rates, and weaker consumer demand are all real risks. But strong tech earnings and cautious positioning may still offer support—if the surprises stay mild.
Delta (DAL) soared 12% after reporting Q2 EPS of $2.10 on $15.5B revenue, topping estimates and reinstating full-year guidance of $5.25–$6.25—above the $5.38 consensus but below its prior $7.35+ target. Strength came from a 5% YoY gain in premium travel, now a majority of high-margin revenue, while main cabin sales fell 5%. CEO Ed Bastian cited resilient corporate bookings and loyalty spend despite tariff noise.
The results fueled a sector-wide rebound—United and American each gained 12%, JetBlue 7%—but also underscored a K-shaped travel recovery. Higher-income and business flyers are returning, while budget demand remains weak. Delta plans to cut post-summer capacity to preserve pricing. With 59% of Q2 revenue from premium, cargo, loyalty, and maintenance, Delta’s model stands apart from more price-sensitive rivals.
Vertiv stock plunged 14% after two major blows: Trump’s new 50% copper tariff, which threatens input costs, and Amazon’s unveiling of its own in-house liquid cooling system. The copper move could hit Vertiv’s margins if costs can’t be passed on—especially in the crowded AI infrastructure market. Meanwhile, AWS, a key customer, launched custom cooling tech for its GB200 servers, potentially cutting out suppliers like Vertiv. While only 1–2% of revenue is directly at risk, the move signals a broader trend of hyperscalers internalizing infrastructure—undermining Vertiv’s premium valuation.
Defense stocks rallied after the Pentagon scrapped sourcing restrictions and fast-tracked U.S. drone procurement. AeroVironment and Kratos jumped 11–12% as the DoD pledged to buy hundreds of U.S.-made systems and integrate drones into combat training by 2026. The move favors domestic players just as 30% tariffs on EU/Mexico and 50% copper duties raise costs for foreign rivals. The twin policy shifts boost near-term demand and onshoring incentives, making U.S. drone makers key beneficiaries—if they can scale profitably.
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