Daily Market Snapshot: August 5, 2026

Brought to you by your local Edward Jones advisors. Wednesday 8/5/2026 Stocks gain with earnings and geopolitics in focus – U.S. equity markets are trading higher Wednesday as investors digest another busy day of corporate earnings, including results from Advanced Micro Devices and SpaceX's first quarterly filing as a public company. Geopolitical developments also remain front and center, with reports suggesting that an interim agreement to reopen the Strait of Hormuz could be announced as soon as today. On the economic front, the ADP employment report showed that private employers added 44,000 jobs in July, the smallest monthly gain in six months but still consistent with stable hiring trends, in our view. Overseas, Asian equity markets advanced overnight, while European markets are also mostly higher. The moves followed the release of the eurozone's June Producer Price Index, which showed that producer prices rose 4.6% year-over-year, slowing from 5.9% in May. Bond yields are slightly higher to begin the day, with the 10-year U.S. Treasury yield opening at 4.63% and the 2-year yield at 4.22%. ADP employment data points to job growth in July – The ADP employment report showed that private employers added 44,000 jobs in July, below economists' expectations for a gain of 75,000 but still consistent with stable employment growth, in our view. Looking beneath the headline, employment in goods-producing sectors declined slightly, while the service-providing sector accounted for all of the month's job gains. The report also showed that median pay for employees who remained in their current jobs rose 4.4% year-over-year, unchanged from June. Meanwhile, pay growth for job changers accelerated to 7%, its fastest pace since August 2025. While stronger wage growth should help support household finances and consumer spending, it could also raise concerns at the Federal Reserve that a sustained period of elevated wage growth may place upward pressure on inflation. In our view, today's data provide further evidence of stable labor-market conditions, characterized by modest hiring and low levels of layoffs. We think the report also provides a solid handoff to Friday's nonfarm-payrolls report, with economists expecting employment to rise by 100,000 and the unemployment rate to remain unchanged at 4.2%. Earnings season remains in focus – Earnings season remains in focus on Wednesday as investors digest results from semiconductor company Advanced Micro Devices (AMD) and SpaceX's first quarterly filing as a public company. AMD reported stronger-than-expected revenue and earnings for the second quarter, driven by continued strength in the company's Data Center segment, which continues to benefit from the buildout of AI-related infrastructure. Despite the better-than-expected results, AMD shares are trading lower in early trading, likely reflecting elevated expectations heading into the quarter and some profit-taking after the stock gained more than 140% year-to-date through Tuesday, in our view. SpaceX shares are also trading lower after the company reported better-than-expected revenue and a narrower-than-expected second-quarter loss following Tuesday's market close. However, the company announced second-quarter capital expenditures of $18.4 billion, primarily related to investments in AI compute infrastructure. That figure was well above analysts' estimates of approximately $13.2 billion for the quarter, and we would view the negative stock-price reaction as reflecting investor caution around increased AI-related spending without tangible returns. At the index level, second-quarter results have been strong, with S&P 500 earnings per share on pace to grow 45% from a year ago. If that pace holds, it would mark the seventh consecutive quarter of double-digit earnings growth. The full-year earnings outlook also remains solid, with estimates calling for S&P 500 earnings growth of nearly 30%. We continue to view the fundamental environment as supportive of equity markets. Strong corporate profit growth, healthy economic activity, and stable labor-market conditions should help provide a favorable backdrop over the coming months, in our view. Important information: This is for informational purposes only and should not be interpreted as specific investment advice. 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