Public Markets 8 Hours

Last updated: August 5, 2026, 2:32 PM ET

Markets React to Earnings and Economic Data

U.S. stocks showed mixed performance, with the Nasdaq Composite retreating after a morning rally while the Dow industrials and S&P 500 advanced. Treasury yields were mixed as mediators in the Middle East worked on reopening the Strait of Hormuz. Gold prices jumped 4% on a weaker U.S. dollar and lower Treasury yields, with traders closely watching Middle East developments and U.S. data for cues on monetary policy. U.S. natural futures inched up in early trading. Commercial crude stockpiles increased by 2.5 million barrels in the week ended July 31, contrary to expectations of a 1.2 million barrel fall.

Corporate Performance and Outlooks

Disney's shares rose as the entertainment group increased its buyback plan, with theme parks and "Toy Story 5" boosting results. Third-quarter revenue at Disney increased 7% to $25.2 billion, driven by growth from the company’s experiences unit. Shopify signaled revenue acceleration, forecasting accelerating third-quarter sales growth as artificial intelligence-driven search and broad merchant expansion fuel market-share gains. Uber Technologies reported moderating growth and issued a soft outlook, despite achieving higher revenue in the second quarter as it continues to invest heavily in autonomous vehicles. Uber also pledged $10 billion to win the robotaxi race, with Chief Dara Khosrowshahi lauding strong bookings and record cash flow to fund its costly AV push. Shake Shack reported higher second-quarter sales, but profit slipped as operating expenses increased. Bloomin’ Brands raised its adjusted earnings outlook, as customers at its Outback Steakhouse chain are paying more for pricier steaks. Dine Brands recorded higher sales and lower profit in the second quarter, with IHOP’s growth helping offset a decline at Applebee’s. Kraft Heinz reported a narrower loss and lower sales in the second quarter, but raised its sales outlook as it aims to mitigate higher supply costs by raising prices. CVS Health lifted its full-year outlook and reported a nearly threefold increase in its second-quarter profit, launching a partnership with Eli Lilly for its GLP-1 weight management program. Eli Lilly posted higher revenue on continued GLP-1 demand, reporting higher net income and revenue fueled by surging demand for its weight-loss drugs. Eli Lilly and Novo Nordisk raised their profit outlooks as demand for weight-loss drugs soars, although investors showed a dim view of Novo's over-reliance on obesity treatments. Reuters bumped up its revenue targets for the year after logging double-digit growth across its three major business segments in the latest quarter. Shark Ninja raised its full-year outlook after second-quarter sales rose on strong demand across its product lineup, with growth led by cooking appliances, beauty products, and international markets. Honda doubled profit and lifted guidance on a weak yen, aiming to improve its hybrid EV offerings to shore up its car business's profitability.

Investment and Deal Activity

BC Partners’ credit arm is leading a group of investors looking at lending money to LIV Golf. Carlyle Group is seeing a thaw in capital markets that is quickening the tempo of exits from investments across multiple industries. Bodycote is receiving twin private equity bids, with separate offers from CVC and Veritas valuing the FTSE 250 industrials group at about £1.8 billion including debt. Partners Group is nearing a €2 billion deal for the beauty group Aroma-Zone, with French asset manager Eurazeo in talks to sell a stake in the group. Vusion is in the early stages of exploring strategic options, including a potential sale. Boeing Co. and Lockheed Martin Corp.’s rocket joint venture plans to sell bonds in the private market to refinance debt. Kazakhstan plans to return to the yuan debt market this year with a $500 million deal, as Central Asia’s largest oil producer seeks to tap cheaper financing from China.

Global Economic and Political Developments

Colombian authorities intercepted a bus rigged with explosives in the country’s southwest, underscoring security concerns ahead of President-elect Abelardo de la Espriella’s inauguration. Iran has reached an agreement with Oman on the Hormuz shipping route, demonstrating a determination to retain a degree of control over the chokepoint. The U.S. shipped a record amount of distillate fuel overseas last week as domestic stockpiles fell again, a sign that the global scramble for diesel is increasingly draining U.S. supplies. The U.S. Treasury retained its previous guidance for future debt issuance, signaling no change in note and bond auction sizes well into 2027 even as federal borrowing needs climb. The U.K.’s top financial regulator is changing rules around information sharing tied to initial public offerings, as London seeks to become a more attractive listing destination. China has launched a global tax hunt going back decades, with fiscal pressure sparking a retroactive campaign and tougher controls on future offshore capital flows. The European Union will carry out an audit in Brazil at the end of August that could allow the country’s poultry exports to avoid a ban taking effect on September 3. The U.S. plans to halt key metal waste exports in a push to break reliance on China, as Washington races to secure raw materials crucial for defense and other industries. Gabon has become a top performer in emerging sovereign bond markets, buoyed by expectations that an International Monetary Fund program will help it avert a debt restructuring.

Industry Trends and Challenges

The media company The New York Times saw its stock plunge more than 13% as subscriber growth slowed, though total revenue climbed 11% to $762.5 million in the second quarter. SpaceX shares sank on AI spending plans, with the Elon Musk-led rocket company spending $15.8 billion on AI projects in the second quarter and not planning to slow down. SpaceX also reported higher-than-expected AI-related outlays, contributing to the S&P 500 being poised for another record as the AI spending narrative holds. The aviation supply chain is buoyant, but its wings will be clipped if customers struggle. Steep duties on Canadian lumber, wildfires, and sawmill closures have cut supply and pushed up lumber prices, which have not been so high in years despite sputtering home-building. Trump’s push for more AI data centers is expected to lead to major air pollution. The combatants in the war above Russia and Ukraine are producing ever larger numbers of innovative aerial weapons, hoping for a breakthrough as ground combat is largely frozen. Forecasters expect winds to pick up in eastern Washington and Oregon, potentially worsening fires, though not as strong as last weekend's. The second stage of a SpaceX Falcon 9 rocket, which sent two private landers to the moon last year, is scheduled to collide with the moon early Wednesday morning. Although amateur and professional astronomers pointed telescopes at the impact site, there were no obvious signs of a collision from a four-ton SpaceX rocket stage.

Market Commentary and Analysis

The S&P 500 is poised for another record as the narrative around artificial intelligence spending continues to hold sway. Sentiment in the tech sector has turned around completely from last month, with tech euphoria returning in just four days. Investors are not asking for rate guarantees but simply want to know how the Federal Reserve will react to changing economic data. Emerging-market carry trades, some of this year’s most popular foreign-exchange bets, are showing resilience even after joint U.S.-Japan currency intervention dented the appeal of yen-funded strategies. The wide impact of U.S. intervention into the Japanese currency shows the extent to which global markets revolve around investments in artificial intelligence. The U.S. Treasury's intervention into the yen in 1998 is being recalled.

Corporate Leadership and Legal Matters

The head of the Justice Department praised the U.S. attorney in Washington after her tense meeting with the president. Jeff Dean is leaving Alphabet. Peter Jackson will be replaced as CEO of Flutter by the head of Flutter’s international business in October. Representative Shri Thanedar was ousted by a Democratic socialist in a Michigan House primary, among a wave of incumbents sent packing by primary voters. Chuck Edwards U.S. Representative, dropped his re-election bid in North Carolina after the House Ethics Committee recommended he be censured for unprofessional conduct. Law enforcement and emergency workers responded to Perez Hilton’s house after he appeared to hurt himself on a TikTok stream. Lobga Rangzen, a Tibetan activist, set himself on fire in Manhattan.

Sector-Specific Insights

In African tech hubs, developers are picking China’s cheap, freely available artificial intelligence models over more powerful U.S. ones. The Trump administration’s new AI safety review guidelines appear to exempt Chinese artificial intelligence models, while OpenAI’s and Anthropic’s are not. Demand for weight-loss drugs is soaring, driving higher revenue for Eli Lilly and lifting its profit outlook. The Mediterranean archipelago of Malta has become a hot destination for U.S. companies seeking to shield profits from income taxes. The latest Market Talks cover energy and utilities, including insights on oil futures and Seatrium. Health care talks include insights on Novo Nordisk and Fresenius. Technology, media, and telecom market talks cover Disney, Shopify, and Uber. Auto transport market talks feature insights on Thai Airways, Continental, and Kia.