Public Markets 8 Hours

Last updated: August 5, 2026, 8:32 PM ET

Markets React to Economic Data and Geopolitical Developments

The Dow Jones Industrial Average reached a new record high, marking its 24th such achievement this year, while the Nasdaq Composite experienced a slip. Treasury yields edged lower in anticipation of the Bureau of Labor Statistics employment report, following weaker-than-expected private payroll data. The WSJ Dollar Index decreased by 0.2%, continuing a downward trend for six of the past seven trading days. Global bond and currency investors are contemplating a return to the "Sell America" trade due to recent economic policy decisions from Washington.

Corporate Earnings and Performance

DBS Group Holdings Ltd. exceeded profit expectations for the second quarter, driven by a significant increase in wealth-driven fee income, and subsequently raised its 2026 guidance. MetLife Inc. surpassed Wall Street’s second-quarter earnings forecasts, benefiting from robust underwriting, volume growth, and the successful execution of a five-year plan. App Lovin reported that its profit and revenue growth continued in the most recent quarter, though the company stated the results did not fully meet its own standards. News Corp revenue growth across all its segments, with digital-only subscriptions to The Wall Street Journal averaging nearly 4.5 million in the quarter. EBay reported higher revenue of $3.13 billion and now anticipates gross merchandise volume growth between 11.5% and 12.5% in 2026, following the closure of its Depop acquisition. Motorola Solutions raised its full-year outlook, expecting adjusted earnings per share between $17.62 and $17.72 on revenue of approximately $12.98 billion. Block also raised its full-year guidance and second-quarter revenue, as growth in its commerce and financial solutions businesses compensated for declines in Bitcoin. Goodyear experienced a loss of $204 million, or 71 cents a share, compared to a profit of $254 million, or 87 cents a share, in the same period last year, attributed to lower tire volume and higher costs. Zillow Group reported a loss of $4 million, impacted by $36 million in restructuring costs that outweighed higher revenue, although its revenue jumped 18% year-over-year to $772 million, with rental agreements showing strong growth. Expedia now expects annual revenue between $16.05 billion and $16.22 billion, an increase from its previous forecast. E.l.f. Beauty’s sales climbed 36% in the first quarter to $479.4 million, and the company raised its full-year sales guidance, with Hailey Bieber's Rhode brand contributing to the growth. Duolingo Inc. shares fell as much as 12% after its cautious revenue outlook for the current quarter overshadowed user growth figures.

Technology and AI Market Dynamics

The investment case for China's internet giants is strengthening due to the country’s rapid advancements in low-cost artificial intelligence, shifting investor focus from chipmakers. In African tech hubs, developers are increasingly opting for China’s affordable AI models over more sophisticated U.S. alternatives. SpaceX’s stock experienced a decline due to rising costs associated with its artificial intelligence initiatives. Western Digital reported an elevenfold increase in its fourth-quarter profit, driven by sustained demand for its memory technology amid the ongoing AI buildout. San Disk’s revenue soared due to increased demand for data storage fueled by the artificial intelligence sector, leading to a higher net income of $6.9 billion. Celestica Inc. is seeking to raise $3 billion by issuing new shares to fund data center expansion, joining other companies in securing capital for AI infrastructure. The technology sector may become more reliant on retail investors and exhibit greater volatility following a challenging July, according to preliminary data. U.S. stocks finished mixed, as optimism surrounding the reopening of the Strait of Hormuz was counteracted by increased volatility in artificial intelligence investments.

Energy and Commodities

Oil prices declined amid growing optimism about the potential reopening of the Strait of Hormuz. U.S. natural gas futures traded within a narrow range ahead of the Energy Information Administration’s weekly storage report. Phillips 66 expects that the current high fuel margins will persist into 2027, with executives from a major U.S. refiner suggesting these strong margins will likely continue through the next quarter and beyond. U.S. diesel exports reached a record high last week as domestic stockpiles continued to fall, indicating a global demand for supply is increasingly depleting U.S. resources. Copper prices rose to new record highs for the third consecutive trading session, with gold and silver prices also settling higher. Ghana's central bank incurred losses of 22 billion cedis ($1.9 in 2025 from a domestic gold purchase program intended to increase the country's foreign-exchange reserves. Mosaic Co.'s reduced fertilizer production has not sufficiently mitigated the impact of rising input costs stemming from the conflict in Iran.

Financial Services and Deals

JPMorgan is reportedly recruiting M&A banker Amy Lissauer from Bank of America to lead its activism defense practice. A former executive alleged that JPMorgan improperly denied reimbursements exceeding $100 million to customers who were victims of financial fraud. Fitch Ratings announced it is upgrading 30 tranches of collateralized loan obligations, adding to the hundreds of tranches previously considered for upgrades under a new methodology. Two private credit funds managed by Blue Owl Capital Inc. repurchased a combined $90 million of shares, marking a consecutive quarter of buybacks as the asset manager aims to stabilize the vehicles. Ares Management Corp. is leading a $2.2 billion direct loan to support a healthcare services acquisition, representing one of the largest deals in the private credit market since it was affected by record redemptions. CME Group and Fan Duel are scaling back their joint venture focused on prediction markets, as they have struggled to gain traction against rapidly advancing startups in a booming industry. BC Partners’ credit arm is reportedly leading a group of investors considering lending money to LIV Golf.

Labor and Employment

Etsy announced plans to cut 12% of its workforce as the CEO focuses on the core marketplace, with these reductions not being driven by cost-cutting or artificial intelligence initiatives. DoorDash's profit fell due to increased costs of revenue from a higher volume of orders, alongside rises in sales, marketing, research and development expenses, and other overhead costs.

International Markets and Trade

LGT, a private bank owned by the Princely House of Liechtenstein, intends to expand its presence in Japan, aiming to capture a share of the growing wealth in that market. The European Union will conduct an audit in Brazil at the end of August, which could enable the country's poultry exports to avoid a ban scheduled to take effect on September 3rd. 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. Iran has indicated that it has reached an agreement with Oman regarding the shipping route through the Strait of Hormuz, emphasizing its determination to maintain control over the chokepoint. The U.S. suspended government operations in the Mexican state of Michoacán, impacting avocado imports from the region to the United States.

Political and Legal Developments

Dr. Anthony Fauci invoked his Fifth Amendment right against self-incrimination in refusing to answer questions from a Senate committee, with Republicans disputing his eligibility for this protection. The pro-Israel organization AIPAC spent $32 million in an unsuccessful bid to defeat Abdul El-Sayed in Michigan's Democratic Senate primary and may attempt to do so again in the general election. Mayor Zohran Mamdani stated that Abdul El-Sayed's narrow victory in the Michigan Senate primary signifies a return of working-class Americans to the forefront of political discourse. Abdul El-Sayed's Senate candidacy represents a significant test for the progressive wing of the Democratic Party, raising questions about whether an openly liberal insurgent candidate can win a general election in a moderate state. The C.I.A. has established a secret task force focused on Cuba, aiming to direct financial, human, and technical resources toward creating divisions within the Cuban political elite. Marine One, the helicopter used by the president, came within less than a mile of an Envoy Air flight in Washington airspace, raising concerns about air traffic control. A former executive alleged that JPMorgan improperly denied reimbursements exceeding $100 million to customers who were victims of financial scams. The federal government is terminating its contract with a Kentucky-based nonprofit following reports of alleged abuses, including pressuring medical workers to remove organs from recovering patients. In a new tactic federal immigration officials have threatened to prosecute elected county sheriffs in Minneapolis and Chicago for denying access to inmates. The potential cost of President Trump's proposal for 15 battleships could reach $275 billion, according to a government estimate. Jason Arday, who was hired as the youngest Black professor at Cambridge University in 2023, has resigned amid scrutiny over his academic qualifications and personal claims.

Other Business and Market News

The Treasury Secretary expressed the view that the K-shaped economy, characterized by widening disparities between the rich and poor, no longer exists, despite contrary data. LIV Golf is reportedly in discussions with potential investors, including Saudi Arabia's Public Investment Fund and BC Partners, seeking assurances regarding player retention. The Dutch owner of the Raleigh and Babboe brands, Accell, has filed for insolvency four years after a €1.8 billion buyout led by KKR. Bodycote, the FTSE 250 industrials group, has received separate takeover bids from CVC and Veritas, valuing the company at approximately £1.8 billion, including debt. Bending Spoons is acquiring Airtable for a fraction of its last private valuation, a move described as a "kick in the gut" for software unicorns and their investors. Arini and Silver Point are among the lenders poised to take control of Pfleiderer, a wood-paneling company backed by Strategic Value Partners, despite the company having raised new debt just eight months prior. Boeing Co. and Lockheed Martin Corp.'s rocket joint venture intends to sell bonds in the private market to refinance its debt. A group of bondholders is set to take over the struggling wood-paneling company Pfleiderer, which was previously backed by Strategic Value Partners.