WS #6293

The dominant signal in this window is Apple's (AAPL) Q2 earnings beat, with revenue of $111.18B (beat by $1.6B) and EPS of $2.01 (beat by $0.07), driven by strong Services ($30.98B vs $30.37B) and Greater China ($20.50B vs $18.91B). However, iPhone revenue slightly missed ($56.99B vs $57.21B) and CEO Cook noted supply constraints on advanced node chips, which could weigh on sentiment. The company authorized an additional $100B buyback and raised the dividend by 3.8% to $0.27. The stock slipped slightly in after-hours trading, reflecting the mixed signals. Separately, geopolitical tensions with Iran are escalating: air defense systems were activated in Tehran to counter drones, the UAE banned travel to Iran, Lebanon, and Iraq, and a drone strike hit an Iranian Kurdish opposition camp in Iraq. These developments, combined with the ongoing US naval blockade of Iran, are keeping oil prices elevated (Brent at $126). The US and UK agreed on preferential duty access for UK whiskey, a positive for Diageo (DEO). On the earnings front, several companies reported beats: Reddit (RDDT) surged on a 69% revenue jump, Twilio (TWLO) soared on strong guidance, and MasTec (MTZ) raised FY26 EPS guidance. Conversely, Roblox (RBLX) plummeted 20% after slashing its bookings outlook, and Clorox (CLX) cut its annual profit forecast. The overall market narrative is earnings-driven with a stable-to-escalating geopolitical backdrop.