Public Markets 24 Hours

Last updated: August 4, 2026, 11:31 AM ET

Municipal Bonds and Infrastructure

The Los Angeles Department of Water and Power is set to issue $400 million in water revenue bonds to fund significant infrastructure upgrades. A historic private school in Pittsburgh is seeking to raise $30 million through municipal bonds for campus improvements aimed at attracting more students.

Energy Markets and Geopolitics

Brent crude dropped 4% on news that Iranian and Omani negotiators have reached a temporary agreement to allow shipping through the Strait of Hormuz. Treasury yields declined as oil prices softened on the prospect of a deal for the Strait of Hormuz. Russia's oil have decreased as a lull in Ukrainian drone strikes has allowed for increased refining capacity, leading to less crude being shipped abroad. Saudi Aramco reported a 33% surge in quarterly profits, utilizing pipelines to circumvent disruptions in the Strait of Hormuz. U.S. natural futures experienced a volatile trading session, continuing their pattern of daily fluctuations due to strong production and subdued liquefied natural gas (LNG) demand, which offset high seasonal power sector consumption. The European Union is optimistic about its winter liquefied natural gas imports, which are intended to compensate for inventories at their lowest level in nearly two decades. Russia is expanding its "shadow LNG fleet" to circumvent EU sanctions, with a growing number of vessels expected to facilitate continued exports of liquefied natural gas as sanctions tighten next year.

Corporate Earnings and Dealmaking

Cummins Inc. its full-year outlook after reporting an increase in second-quarter profit and sales, driven by strong orders for data center standby power and improving North American demand. DuPont de Nemours reported higher second-quarter profit and sales across its various segments. Bayer AG an unexpected rise in second-quarter profit, bolstered by robust demand for soybean seeds and weedkillers from its crop science division. Bayer swung to a net profit due to reduced litigation charges, maintaining its 2026 sales and earnings forecasts and projecting lower year-end net debt. AbbVie Inc. is seeking to raise at least $8 billion through an investment-grade bond offering to finance a portion of its acquisition of Apogee Therapeutics Inc. Pfizer Inc. exceeded expectations with its quarterly results, as increased sales of cancer and heart disease medications compensated for significant declines in its Covid-19 products. Merck & Co. revised down its full-year profit forecast due to charges associated with its acquisition of cancer biotech firm Terns Pharmaceuticals. Wayfair Inc. had a mixed second quarter, with growth in its U.S. business contrasting with a decline in international sales, leading to an overall loss. Kimberly-Clark reported lower profit and missed revenue estimates for its second quarter, as allegations regarding diaper quality in China disrupted sales. Huggies maker stated that findings of formamide in its diapers in China are false, following a state-run newspaper's report and subsequent social media backlash. BP reported a doubling of its profits and plans to sell its U.S. biogas business for $4 billion as part of its energy transition strategy. BP's oil profits have surged, driven by its oil trading and higher energy prices, even as it plans to divest its U.S. biogas unit. Apollo Global achieved record fee-related revenue as it aims to become one of Wall Street's largest lenders. Bridgepoint Group is exploring a secondary transaction to sell over €1 billion ($1.15 in private credit stakes. Italy's Nextalia Management successfully raised over €1.1 billion ($1.3 for its second private equity fund, focusing on its domestic market.

Technology and Artificial Intelligence

The U.S. stock market is trading near record highs, indicating that investors remain largely unconcerned about the declining cash flows of some major technology companies. The AI trade has entered a phase where its success is dependent on broader market sentiment and investor confidence. White House has faced internal inconsistencies and has struggled to establish a clear policy on artificial intelligence, particularly concerning "open source" models that are freely available and favored by Chinese companies. OpenAI is engaged in a legal dispute with Apple over alleged trade secret misappropriation, following a partnership related to devices. Palantir Technologies saw its shares increase significantly after reporting "otherworldly" sales and improving its forecast, with CEO Alex Karp stating that "demand for AI sovereignty has now been unleashed." Palantir forecasts increased demand from U.S. entities for its AI software, with American sales climbing 23% in the second quarter. ON Semiconductor reported higher profit and revenue, driven by growth in its AI data center business, with net income rising to $226.8 million in the second quarter from $170.3 million a year prior. BlackRock Inc. maintains an overweight position in artificial intelligence investments despite escalating risks from competition and interest rates, according to Wei Li. AI revolution is encountering challenges due to the high costs and slow integration processes that companies are reluctant to acknowledge, according to a former Lululemon executive. The increasing use of AI in the workplace is transforming the American economy, with some companies exploring AI for management roles.

Global Markets and Currencies

U.S. stocks are trading near record highs, with market gains broadening as the AI-related trade experiences a slowdown. The S&P 500 is approaching a new record, driven by strong corporate profits that are overshadowing concerns about geopolitical conflicts and inflation. U.S. stocks are poised to extend their rally, while oil prices declined on hopes for diplomatic engagement with Iran. U.S. stocks are poised to extend their gains ahead of SpaceX's first earnings report, with Brent crude trading below $85 a barrel. Gold prices are stable as traders monitored diplomatic efforts to de-escalate U.S.-Iran tensions, which could lead to lower energy prices and reduce pressure on the U.S. Federal Reserve to raise interest rates. WSJ Dollar Index increased by 0.1%, ending a four-trading-day losing streak. The dollar strengthened in European trading as oil prices rose following Iran's statement that there were no planned talks with the U.S. Treasury yields increased, and the dollar firmed as oil prices climbed after Iran indicated no imminent discussions with the U.S. Emerging market stocks and currencies remained under pressure as the lack of progress in U.S.-Iran negotiations pushed oil prices back above $86 a barrel. Options traders reduced their long-term bearish bets on the South African rand, as the cost of hedging against rand depreciation over the next 12 months has fallen to its lowest point this year. Investors remain skeptical about the yen's prospects despite the joint intervention by the U.S. and Japan, although the currency has rallied since the coordinated action. Japan's historic intervention with the U.S. has shifted market focus to whether the yen can strengthen beyond 155 per dollar, a level strategists consider a critical test for the rally's sustainability. Treasury Secretary Scott Bessent commented that the yen's weakness contributes to Japan's inflation problem and increases the risk of broader depreciation in Asian currencies, while reaffirming U.S. support for currency stability. Bank of Japan may be the only entity capable of halting the yen's decline, as higher interest rates are necessary to address the widening yield gap with the U.S. A rarely used Federal Reserve liquidity facility could impede Japan's ability to sell Treasuries to support the yen, potentially encouraging market tests of the U.S. and Japan's commitment to currency stability.

Corporate News and Financials

India has expanded its share sale in state-run insurance giant LIC to raise $3.3 billion due to strong demand, bolstering public finances amidst challenges from high inflation. HSBC Holdings reported a sharp increase in quarterly profit and plans a $1 billion share buyback, with pretax profit rising across all four of its key segments, particularly in its affluent client services. HSBC's CEO said the bank may consider increasing its bonus pool for bankers if strong performance continues. Spotify reported a 14% year-over-year increase in quarterly revenue, reaching 300 million premium subscribers. Spotify's profits were impacted by significant spending as concerns grow regarding streaming growth, with user growth forecasts missing estimates due to investments in AI tools. Volvo Car sales decreased by 4%, primarily due to weakness in the Chinese market, while U.S. sales saw a double-digit percentage increase for the third consecutive month, and European deliveries remained steady. Continental AG anticipates meeting its tire guidance despite higher raw material costs, and is nearing the end of its strategic realignment, warning of substantial cost increases in the latter half of the year. Lufthansa shares slid following a steep drop in second-quarter profit and a more cautious full-year outlook, citing volatile jet fuel prices. Zalando, German online retailer, reported weak second-quarter results and narrowed its full-year outlook. Fresenius Medical AG shares dropped as U.S. treatment volumes continued to decline, erasing most of their gains for the year. UBS was fined $125 million for alleged failures in anti-money laundering processes.

Economic Indicators and Trade

The U.S. trade deficit narrowed in June as both imports and exports declined, retreating from a busy May. Data from the Commerce Department indicated that imports and exports both decreased, marking a retreat from the activity seen in May.

Space Exploration

The second stage of a SpaceX Falcon 9 rocket, which was involved in a lunar mission last year, is expected to impact the moon early Wednesday morning. SpaceX's first earnings report following its initial public offering is highly anticipated on Wall Street, with investors watching to see if it will provide a catalyst for stock purchases.

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