FTSE 100 Rises as BP and Diageo Post Strong Earnings, US Data Weighs on Gains

The FTSE 100 rose 0.2% to 9,142.73, driven by strong corporate results from Smith & Nephew, Diageo, and BP. BP's 2.8% gain was particularly notable, with the oil major reporting better-than-expected Q2 results and a major hydrocarbon discovery in Brazil. However, weak US data tempered gains late in the trading session.

The FTSE 100 rose 0.2% to 9,142.73 on Tuesday, July 2, 2025, buoyed by robust corporate earnings and a significant oil discovery by BP. The index was driven by notable gains from Smith & Nephew, Diageo, and BP, while weak US data tempered gains late in the trading session.

Smith & Nephew PLC (LON:SN) shares surged 15% after reporting an 11.2% rise in first-half trading profit to $523 million, exceeding analyst expectations of $496 million [3]. The medical products maker’s trading profit margin improved to 17.7% from 16.7% a year earlier, with revenue rising to $2.96 billion from $2.82 billion, supported by cost reductions and a rebound in U.S. operations.

Diageo PLC (LON:DGE) shares climbed nearly 3% after reporting annual organic sales growth that beat market expectations. For the fiscal year ended June, net sales reached $20.25 billion, down 0.1% on a reported basis but up 1.7% organically, ahead of consensus estimates of 1.4% organic growth [3]. Earnings per share came in at 164.2 cents, exceeding the expected 161.6 cents.

BP PLC (LON:BP) reported second-quarter profit that exceeded analyst expectations, with underlying replacement cost profit rising to $2.4 billion from $1.4 billion in the first quarter. The figure marked a decline from $2.76 billion in the year-ago quarter but significantly topped analyst estimates of $1.81 billion [3]. The improved performance was supported by gains across all business segments.

BP also announced a significant oil and gas discovery off the coast of Brazil, marking its tenth discovery in 2025 and the largest in 25 years. The exploration well penetrated an estimated 500 meters of gross hydrocarbon column in a high-quality pre-salt carbonate reservoir covering over 300 square kilometers [2]. This discovery comes at a time when the company is aiming to grow its global upstream production to 2.3 to 2.5 million barrels of oil equivalent per day by 2030.

However, the FTSE 100's gains were tempered by weak US data, which led to a late-session sell-off. Domino’s Pizza (NASDAQ:DPZ) Group (LON:DOM) shares plunged more than 14% after cutting its full-year earnings guidance and reporting flat order volumes for the first half [3].

The FTSE 100's performance today reflects the mixed bag of corporate results and global economic uncertainties. While strong earnings from key constituents like Smith & Nephew, Diageo, and BP boosted the index, the overall market remains under close watch due to ongoing economic challenges.

References:
[1] https://uk.finance.yahoo.com/news/ftse-100-climbs-earnings-cascade-163618479.html
[2] https://www.ainvest.com/news/brazilian-offshore-discovery-bp-finds-oil-gas-reserves-2508/
[3] https://www.investing.com/news/stock-market-news/ftse-100-today-index-extends-gains-bp-beats-smith--nephew-rallies-4170146