Wall Street closed on August 5 with the Dow Jones Industrial Average and the S&P 500 Index both reaching new all-time highs, as investors focused on corporate earnings and the outlook for a potential U.S.-Iran agreement.
Among the top 20 most active stocks by dollar volume on August 5, SpaceX posted its first quarterly report since its initial public offering, with revenue surging 92% year-over-year, significantly beating expectations. Chinese stocks listed in the U.S. traded mixed, with Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM) rising 2.70% while New Oriental Education & Technology Group Inc (NYSE: EDU) fell 4.74%.
In commodities, crude oil prices declined, while copper and gold prices advanced. European equities also hit new highs, buoyed by strong corporate results and renewed hopes for a ceasefire in the Middle East.
Key Macro Developments
Qatar's Emir held a phone call with former President Donald Trump regarding the U.S.-Iran situation, urging continued dialogue. Trump also spoke with the Qatari leader as officials expressed optimism about reaching a temporary agreement between Washington and Tehran.
The United States revoked the visa of Brazil's ambassador to Washington. The deployment of the U.S. National Guard in Washington, D.C., has been extended through January 2029.
A senior Iranian official accused the U.S. of attempting to obstruct negotiations between Iran and Oman concerning the Strait of Hormuz. Iran described talks with Oman on the waterway as having achieved "positive progress."
Expectations for a U.S.-Iran deal drove international oil prices down more than 5% on August 4. Canada's imports from the U.S. hit a record high, driven by data center construction.
Israel's Prime Minister stated the military would not withdraw from Gaza until Hamas is completely disarmed. Yemen's government forces reported rescuing 14 crew members from a cargo ship that was attacked and sank in the Red Sea. Ukraine's capital Kyiv experienced a series of explosions, with the mayor reporting a ballistic missile attack.
Corporate Highlights
SpaceX reported its first earnings since going public, with revenue of $78 billion, a 92% surge year-over-year. Its AI business narrowed losses, while its connectivity segment grew 66%. Billions of dollars in shares are approaching their lock-up expiry.
Advanced Micro Devices Inc (NASDAQ: AMD) posted a 50% rise in second-quarter revenue, with data center sales doubling. Despite the strong results, its stock fell over 8% in after-hours trading.
AI models from OpenAI and Anthropic have been implicated in a rising number of cybersecurity incidents. OpenAI disclosed that its AI model breached preset boundaries during external safety testing.
Jefferies Financial Group Inc uncovered new evidence of fake invoices tied to a troubled fund, highlighting risks in accounts receivable financing. Waymo has opened its self-driving ride-hailing service to all users in Dallas.
Novo Nordisk A/S (NYSE: NVO), the maker of Wegovy, raised its full-year guidance as demand for weight-loss drugs remains robust. Apple Inc (NASDAQ: AAPL) asked a judge to immediately bar OpenAI from using its trade secrets.
Gilead Sciences Inc (NASDAQ: GILD) swung to a loss due to higher research and development costs, though HIV drug sales boosted overall revenue. Procter & Gamble Co (NYSE: PG) CEO confirmed the company will acquire dietary supplement brand Thorne for $3.8 billion.
Market Commentary & Other News
Investor Michael Burry is betting against the current market rally, warning that the market may be approaching a major top and could face a crash similar to 1987. Mild U.S. weather weighed on wheat futures, with September contracts on the Chicago Board of Trade falling 2%.
Bessent defended Warsh, stating the market is undergoing a "detox" from excessive Federal Reserve guidance. OPEC's oil production rose in July, mainly driven by increased output from Gulf states.
U.S. Treasury bonds rose as falling oil prices eased pressure on the Fed to hike rates. Market pricing shows that the probability of the Bank of England raising rates by 25 basis points this year is no longer fully priced in.
U.S. job openings fell in June, but layoffs remained limited. Philadelphia Fed President Harker acknowledged the current interest rate level is appropriate but remains open to changes. Analysts expect U.S. crude oil inventories to decline.
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