Public Markets 3 Days

Last updated: August 5, 2026, 5:30 PM ET

Market Movers

The S&P 500 finished mixed as optimism over the Strait of Hormuz reopening was tempered by volatility in artificial intelligence investments. The Nasdaq also experienced a retreat after an initial morning rally, while the Dow industrials advanced. Treasury yields edged slightly lower ahead of the Bureau of Labor Statistics employment report, following weaker-than-expected private payroll data. U.S. natural gas futures traded in a range ahead of the Energy Information Administration's weekly storage report. Copper prices rose to new record highs for the third consecutive trading session, with gold and silver prices also settling higher.

Corporate Earnings and Outlooks

Block raised its full-year financial solutions growth outlook and reported higher second-quarter revenue, driven by its commerce segment, which helped offset declines in Bitcoin. Goodyear swung to a loss of $204 million, or 71 cents a share, in the second quarter, compared to a profit of $254 million in the year-ago period, due to lower tire volume and increased costs. Zillow posted a loss of $4 million, impacted by $36 million in restructuring costs, despite an increase in revenue, with its rental segment showing significant growth. App Lovin's quarterly sales fell slightly below analysts' expectations, and the company provided a softer outlook for the third quarter. DoorDash's profit fell as higher costs for revenue, sales, marketing, research and development, and other overhead expenses offset revenue growth from an increase in orders. E.l.f. Beauty's sales climbed 36% to $479.4 million in the first quarter, and the company raised its full-year sales guidance, with Hailey Bieber's Rhode brand contributing to the growth. Expedia increased its annual revenue forecast to a range of $16.05 billion to $16.22 billion, up from its previous projection of $15.6 billion to $16.0 billion.

Technology and AI Investments

SpaceX's stock declined due to significant spending on artificial intelligence projects, with capital expenditures jumping nearly sevenfold from the previous year and revenue also rising. The company spent $15.8 billion on AI in the second quarter and indicated no plans to reduce this investment. Four top Google researchers have formed a new startup, led by Jeff Dean, with backing from Google. The Trump White House is developing a voluntary framework to review security risks associated with closed-source artificial intelligence models. The widespread adoption of artificial intelligence models in Africa sees developers favoring China's cheaper, freely available AI options over more powerful U.S. alternatives.

Financial Markets and Deals

Two private credit funds managed by Blue Owl Capital Inc. repurchased a combined $90 million of shares, marking the second consecutive quarter of such buybacks as the asset manager aimed to stabilize the vehicles. Fitch Ratings is upgrading 30 portions of collateralized loan obligations, adding to the hundreds of tranches previously under consideration for upgrades under a new methodology. CME Group and Fan Duel are scaling back a joint venture focused on prediction markets, acknowledging that they have not gained sufficient traction in a rapidly growing industry. Ares Management Corp. is leading a $2.2 billion direct loan to finance a healthcare services acquisition, representing one of the largest deals since the private credit market experienced significant disruption. BC Partners’ credit arm is exploring a potential lending arrangement with LIV Golf, leading a group of investors in this endeavor. Boeing Co. and Lockheed Martin Corp.'s rocket joint venture plans to issue bonds in the private market to refinance existing debt. Carlyle Group is observing a thawing in capital markets, which is accelerating the pace of investment exits across various industries.

Economic and Trade Developments

The U.S. suspended government activities in Michoacán, a significant avocado-producing region in Mexico, which could impact avocado imports into the United States. U.S. crude oil inventories increased by 2.5 million barrels in the week ending July 31, contrary to expectations of a 1.2 million barrel decline. U.S. distillate exports reached a record high last week as domestic stockpiles continued to fall, indicating a global demand for diesel that is depleting U.S. supplies. Ghana's central bank incurred losses of 22 billion cedis ($1.9 in 2025 through a domestic gold purchase program designed to boost foreign-exchange reserves. China sold long-dated yuan-denominated sovereign bonds in Hong Kong at record-low yields, reflecting strong global investor demand for offshore issuance. India expanded its share sale in state-run insurance giant LIC to $3.3 billion due to strong demand, bolstering public finances amidst economic challenges. Brazil's Cia. Siderúrgica Nacional is seeking at least 15 billion reais ($2.9 for its cement business and anticipates receiving four bids for the unit.

Industry Specifics

The online travel agency Expedia has raised its annual revenue projection to between $16.05 billion and $16.22 billion. Bloomin’ Brands increased its adjusted earnings outlook, as customers at Outback Steakhouse are opting for more expensive steak options. Dine Brands reported higher sales but lower profit in the second quarter, with IHOP's growth compensating for a decline at Applebee's. Lufthansa shares fell after a significant drop in quarterly profit and a more cautious full-year guidance, anticipating a negative impact from volatile jet fuel prices. Deutsche Lufthansa has warned of increased uncertainty for its full-year outlook due to fluctuating jet fuel prices and shorter booking cycles, which are hindering profit growth efforts. Continental anticipates meeting its tire guidance despite rising raw material costs, and is in the final stages of its strategic realignment. The company now expects sales to increase between 13% and 14% for the current fiscal year, following a fourth-quarter revenue of $1.95 billion. Merck has lowered its profit forecast for the year due to charges associated with its acquisition of Terns Pharmaceuticals.

Global and Political Developments

The U.S. has ended its contract with a Kentucky-based nonprofit following reports of alleged abuses, including pressuring medical workers to remove organs from improving patients. The federal government is ending its contract with a Kentucky nonprofit after allegations of pressuring medical workers to remove organs from patients who were recovering. Colombian authorities intercepted a bus laden with explosives in the country's southwest, highlighting security concerns ahead of President-elect Abelardo de la Espriella’s inauguration. At least 17 people were killed in a Russian missile attack on Kyiv, as Ukraine faces a critical shortage of interceptor missiles to counter Russian bombardments. At the same time, Israeli and Lebanese negotiators were engaged in talks in Rome aimed at achieving a long-term diplomatic resolution. The Trump administration is preparing an AI framework to assess security risks, focusing on closed-source models while excluding those that publish their underlying code.

Other Market News

The New York Times' stock plunged 13% as its subscriber growth rate slowed, though total revenue increased by 11% to $762.5 million in the second quarter. Western Digital reported an over elevenfold increase in its fourth-quarter profit, driven by sustained high demand for its memory technology. Sandisk's revenue soared due to demand for data storage solutions supporting the buildout of artificial intelligence, resulting in a net income of $6.9 billion. The death of a Salvadoran immigrant at a federal detention center in Newark has prompted scrutiny regarding the conditions within the facility. The U.S. government is severing ties with a Kentucky nonprofit after allegations of pressuring medical workers to remove organs from patients who were recovering. The mayor of Newark identified the deceased individual as Edwin Lopez-Cornejo, and the New Jersey facility has been under intense scrutiny for its treatment of detainees. Federal immigration officials have recently begun stating they will prosecute elected county sheriffs in Minneapolis and Chicago as a new tactic.