August 5, 2026

US stock indexes advanced strongly in a day marked by continued corporate earnings reports.

International

The main US stock indexes advanced strongly yesterday. The S&P 500 rose 1.8%, while the Nasdaq gained 2.6%, and the Dow Jones 1.7%. Year-to-date, the indexes have accumulated gains of 13.0%, 14.4%, and 12.5%, respectively.

Regarding bond yields, the US Treasury yield curve compressed yesterday. The 1-year Treasury note fell from 4.03% to 3.99%, while the 3-year Treasury note fell from 4.30% to 4.24%. Finally, the 10-year Treasury note fell from 4.68% to 4.61%.

SpaceX and AMD reported their second-quarter results yesterday. SpaceX reported revenue of $7.8 billion, well above analysts' estimates of $6.81 billion, although it posted a loss of $0.09 per share. Meanwhile, AMD exceeded expectations in both earnings per share (EPS), with $1.66 compared to the expected $1.60, and revenue, which totaled $11.54 billion versus the anticipated $11.25 billion.

This morning, before the market opened, Eli Lilly and Walt Disney reported earnings. Eli Lilly reported EPS of $8.38, below the expected $8.84, although its revenue of $22.97 billion surpassed the projected $20.56 billion. Walt Disney, on the other hand, exceeded EPS expectations, with $2.06 compared to the estimated $1.86, although its revenue of $25.25 billion fell slightly short of the $25.43 billion forecast. SanDisk and Western Digital's results will be released later today.

Finally, the Purchasing Managers' Index (PMI) for the services sector in Japan was released yesterday, coming in at 51.2 points, below the 51.9 points expected by analysts. This morning, the PMI data for the Eurozone and the United Kingdom for July were also released. In the Eurozone, the services PMI came in at 51.7 points, slightly above the 51.6 points estimated by analysts, while in the United Kingdom, the services PMI reached 52.1 points, also above the consensus forecast of 51.8 points. A reading above 50 points indicates expansion in economic activity, while a reading below that level reflects contraction.

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