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August 5, 2026 - 16:22
4 minutes
(Bloomberg) — A slew of strong corporate profits lifted stocks to fresh all-time highs, with the market also rising as President Donald Trump said a deal on the Strait of Hormuz is possible as early as Wednesday.The advance in equities extended into a fifth straight day, the longest winning streak for the S&P 500 since early June. As earnings rolled in, almost 90% of the companies reporting quarterly results so far have beaten estimates. US oil hovered near $75.The weight of the evidence continues to support giving the bull market in stocks the benefit of the doubt, even as we experience more bumps along the way, according to Keith Lerner at Truist Advisory Services Inc.“Earnings remain our north star, the economy continues to show resilience, market participation has broadened, and valuation excesses have largely been worked off,” he said.Despite a blockbuster inaugural quarterly report, SpaceX fell as $101 billion worth of stock becomes available for trading on Thursday. Nvidia Corp. climbed after Elon Musk touted the Vera Rubin chips while partner Hon Hai Precision Industry Co. reported a surge in monthly sales.Traders are also gearing up for Sandisk Corp. and Western Digital Corp.’s results after the closing bell.On the economic front, the US service sector expanded at a steady pace in July, bolstered by a pickup in new orders and business activity. Even so, rising costs for services and materials continued to weigh on firms.Meantime, companies added fewer jobs than expected last month, suggesting some cooling in hiring momentum after a recent stretch of solid gains.If confirmed in the government’s monthly jobs report on Friday, the recent employment trend suggests Federal Reserve officials can keep their focus on still-elevated inflation.Bonds barely budged after the 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.Corporate Highlights:Walt Disney Co.’s profit beat Wall Street estimates, driven by soaring income from its entertainment division and the resilience of its theme parks in California and Florida. Eli Lilly & Co. boosted its 2026 sales guidance after its weight-loss drug franchise performed far better than expected in the second quarter, helping to counter investor concerns that the obesity drug boom is starting to slow. Advanced Micro Devices Inc. gave an underwhelming sales outlook, a sign shareholders expected more of a return from the global expansion of AI data centers. Uber Technologies Inc. issued a bookings outlook that just met analyst estimates, compounding concerns from investors about the company’s ability to evolve in the robotaxi era. Booking Holdings Inc. maintained its full-year outlook for gross bookings and revenue due to resilient travel demand even as the Middle East conflict weighs on flight prices and capacity. Some of the main moves in markets:StocksThe S&P 500 rose 0.6% as of 10:18 a.m. New York time The Nasdaq 100 rose 0.5% The Dow Jones Industrial Average rose 1.2% The Stoxx Europe 600 rose 0.2% The MSCI World Index rose 0.7% CurrenciesThe Bloomberg Dollar Spot Index fell 0.3% The euro rose 0.2% to $1.1556 The British pound rose 0.2% to $1.3484 The Japanese yen rose 0.2% to 157.41 per dollar CryptocurrenciesBitcoin rose 0.3% to $64,467.52 Ether rose 0.1% to $1,878.07 BondsThe yield on 10-year Treasuries was little changed at 4.62% Germany’s 10-year yield was little changed at 3.11% Britain’s 10-year yield declined one basis point to 4.88% The yield on 2-year Treasuries advanced one basis point to 4.20% The yield on 30-year Treasuries was little changed at 5.17% CommoditiesWest Texas Intermediate crude fell 0.8% to $75.16 a barrel Spot gold rose 3.8% to $4,232.26 an ounce ©2026 Bloomberg L.P.
