Good morning investors! Earnings continue to pour in as pressures remain.
Today we cover:
Worker productivity rises
US-Iran situation
Airbnb and more report
📊 Economy and News
US Worker Productivity Rises 1.4% in Q2, Beating Forecasts
US nonfarm productivity grew at a 1.4% annualized rate in the second quarter, faster than expected, the Labor Department reported Thursday. This followed a revised 0.8% gain in Q1. Year-over-year productivity rose 2.2%, while the average since late 2019 stands at 2.1%.
Unit labor costs increased 1.3% (matching the revised Q1 figure and below the 2.1% forecast). Hourly compensation rose 2.7% in the quarter and 3.7% annually. Economists expect AI-driven investments to support further productivity gains and help ease inflation pressures.
Global hits:
Mexico central bank holds rate at 6.5%, delays inflation target return; Czech central bank keeps rates at 3.75% after June hike.
US oil imports from Saudi Arabia at zero in July, first time in 40 years as India’s fuel demand rises 2.9% in July from year earlier.
Ghana’s consumer inflation slows to 4.6% in July.
US-Iran: Iran’s draft plan for the Strait of Hormuz would block U.S. and Israeli ships from transit and impose penalties of up to 20% of cargo value on violators, state media Fars reported. The U.S. quickly rejected the idea, adding that any temporary routes will face “no impediment.”
Reminder: U.S. 30-year mortgage rate rises to 6.69%.
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📈 Stocks
S&P 500 7,709.96 (-0.18%)
DJIA 53,885,10 (-0.85%)
NASDAQ 26,348.35 (-0.056%)
BRENT CRUDE 83.56 (+4.15%)
* Prices as of Aug 6th, 12:20 AM UTC
Airbnb Stock Surges on Strong Q2 Results and Upbeat Outlook
Airbnb shares jumped after the company reported second-quarter earnings and revenue that beat estimates, along with a positive forecast for the next quarter.
Earnings reached $1.37 per share, up 33% from a year earlier and above the $1.26 analysts expected. Revenue rose 17% to $3.61 billion. The company also issued a strong outlook for the September quarter, signaling continued solid travel demand.
More earnings:
Adtech giant AppLovin tanked 19%, a new 52-week low, following a second-quarter revenue miss. Piper Sandler analyst James Callahan downgraded the stock to neutral following the miss, slashing the bank’s price target from $665 to $385.
Versant beat expectations on the top and bottom lines. The company also declared a quarterly cash dividend for the third quarter in a row, again at 37.5 cents a share.
MARA Holdings reported preliminary second-quarter revenue of $174.9 million, down 27% year over year, and a net loss of $611.3 million. The operator also outlined plans to expand its power portfolio from 1.9 GW of current capacity to as much as 4.8 GW.
TradeDesk missed revenue and earnings expectations, while a weaker forecast overshadowed strong customer retention and sent shares sharply lower after hours. In response, the stock fell over 25% after the bell.
Interesting: Copper jumps to its highest level ever.
Chinese humanoid robot maker Unitree prices IPO at $9 billion valuation.
Diageo jumped after the company unveiled a $1 billion three-year savings plan to turn around the struggling business.
Also, check this CNBC article: Grindr is betting that artificial intelligence can do more than just improve the dating app experience.
Surprising: AMD buys chip startup that hardwires AI models into its silicon. In other news, UWM Holdings, parent of United Wholesale Mortgage, plunged 35% after the biggest U.S. mortgage lender suspended its dividend and raised fresh capital.
💵 Personal Finance
States Expand Student Loans Amid Federal Caps—But They’re Riskier
As new federal student loan limits take effect under President Trump’s “big beautiful bill,” many states are expanding their own loan programs. Starting July 1, graduate students face annual caps of $20,500 (or $50,000 for professional degrees like law or medicine), down from unlimited borrowing.
States including Connecticut, Massachusetts, Minnesota, Pennsylvania, and Rhode Island have boosted offerings. Some advertise them as filling the federal gap. A bipartisan Senate bill aims to make it easier for colleges to recommend these loans.
Key caveats: State loans function more like private credit than federal ones. Interest rates can top 10% (e.g., Pennsylvania: 3.29%–10.5%), versus the federal graduate rate of 8.07%. They often require solid credit scores (frequently above 700) or a co-signer, locking out many borrowers. Residency rules usually apply.
Crucially, state loans lack federal protections: no Income-Driven Repayment plans or Public Service Loan Forgiveness. Defaults can trigger aggressive collection, including tax refund seizures. Some states offer their own income-based plans or forgiveness (e.g., New Jersey, Rhode Island, Kansas medical loans), but options vary.
Consumer advocates urge exhausting grants, scholarships, and federal loans first. State loans can be cheaper than private ones (which sometimes exceed 20%), and may help some borrowers—but treat them as a last resort after carefully comparing terms.
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