Good morning investors! Stocks hit a new high yesterday as Palantir records its second best day ever.
Today we cover:
Job openings drop
US-Iran to sign a new deal?
AMD, McDonald’s and more report
📊 Economy and News
US Job Openings Drop in June, Hiring Edges Higher
U.S. job openings fell 178,000 to 7.359 million in June, according to the Labor Department’s JOLTS report, missing the 7.4 million forecast. The decline was driven largely by a 147,000 drop in healthcare and social assistance openings.
Hiring rose 96,000 to 5.348 million, while layoffs held steady at 1.766 million. The job openings rate slipped to 4.4% and the hires rate ticked up to 3.4%. Economists describe the labor market as remaining in “slow-hire, slow-fire” mode, which should let the Federal Reserve keep its focus on inflation after holding rates in the 3.50%–3.75% range last week.
Friday’s July employment report is expected to show nonfarm payrolls up about 80,000 and the unemployment rate steady at 4.2%.
Global hits:
Japan real wages up for sixth straight month in June.
Brazil industrial output drops 1.8% in June amid high rates.
Canada posts fourth straight trade surplus on gold shipments.
US-Iran war: Bessent says there may be deal Tuesday or Wednesday to open Strait of Hormuz with ‘freedom of movement’ as Qatar claims drafts of potential US-Iran agreement are ‘being circulated.
Reminder: US trade deficit narrows in June to $73.3 billion.
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📈 Stocks
S&P 500 7 736,52 (+1.79%)
DJIA 54 085,88 (+1.71%)
NASDAQ 26 584,99 (+2.57%)
BRENT CRUDE 79.34 (-4.47%)
* Prices as of Aug 5th, 12:20 AM UTC
Big Names Report
Some major names announced earnings yesterday:
AMD beat expectations on the top and bottom lines and provided in-line guidance for the current quarter. AMD’s Data Center unit is what is driving the company’s growth. Data Center sales were $6.7 billion, up 107% on an annual basis. AMD said it expects about $13 billion in revenue for the current quarter, plus or minus $300 million, versus LSEG expectations of $12.52 billion. CEO Lisa Su said that the company expects its data center sales to double in 2027, and that server revenue will up more than 80% on an annual basis in the second half of the company’s fiscal 2026.
SpaceX reported better-than-expected revenue for the second quarter in the company’s first earnings report since its record IPO in June, yet dropped 7% as capital expenditures soared. The operating loss for the the space unit was $542 million, while the AI unit lost $1.26 billion. Connectivity remained profitable, with operating income in the period of $1.66 billion.
HSBC reported second-quarter pre-tax profit of $10.1 billion, exceeding analysts’ estimates. Revenue at Europe’s largest lender gained 16% year-on-year, helped by a one-off gain of $1.3 billion from notable items. Second-quarter profit before tax rose 60% year-on-year, also helped by a net favorable impact from notable items of $2.6 billion.
McDonald’s reported mixed quarterly results as the chain’s U.S. performance fell short of executives’ expectations. The company’s global same-store sales ticked up 1.3%, meeting Wall Street’s expectations. U.S. same-store sales increased 0.8% in the quarter. The chain said that average check rose, but traffic to its domestic restaurants fell. If it succeeds at improving its operations and marketing, McDonald’s is expecting its U.S. same-store sales to be back on track with its expectations in 2027.
Paramount Skydance raised its full-year guidance and reported second-quarter results that showcased the continued strengths of streaming and weaknesses of linear TV. While Paramount beat Wall Street expectations for revenue and reported gains in its streaming unit, led by its Paramount+ streaming service, its portfolio of cable TV networks continued to weigh on the overall company. Paramount+ added 2 million subscribers during the quarter, bringing its total to 81.6 million global customers. Paramount still expects total revenue in 2026 of $30 billion, representing 4% growth year over year. Direct-to-consumer revenue from both streaming subscriptions and advertising is expected to accelerate for the year.
Pinterest reported better-than-expected earnings and revenue for the second quarter. However, its forecast for the current period was only in line with estimates. The company’s global monthly active users, or MAUs, jumped 11% year-over-year to 640 million, beating estimates of 635 million. Global average revenue per user, or ARPU, was $1.86, ahead of projections.
Pfizer reported second-quarter results that topped estimates and hiked the low end of its revenue outlook, citing an expected $1.5 billion bump in sales from its non-Covid products. The company said it revised its full-year revenue expectation for its Covid products – the vaccine and antiviral pill Paxlovid – to $4 billion, down from around $5 billion previously. Pfizer also announced additional savings of $2.5 billion from two separate cost-cutting programs, which will be achieved starting in 2027 and through 2029.
Interesting: Jeff Bezos just filed to sell $4 billion in Amazon.
Procter & Gamble will acquire supplements brand Thorne for $3.8 billion.
Surprising: Novo Nordisk dropped about 6% after the Danish drugmaker released guidance that appeared to disappoint investors.
💵 Personal Finance
When to Buy the Dip: The Secret is Out
For long-term investors, “buy the dip” often works in the broad market—every major decline in the S&P 500 has eventually been followed by new highs. Individual stocks are different.
The answer depends on fundamentals, not short-term price action.
Don’t buy just because the stock is cheaper. Purchasing solely in hope of a quick rebound is speculation. A sound approach is to buy (or add) only when the long-term thesis remains intact and the decline is not driven by deteriorating business fundamentals.
Key things to check:
Margins – Expanding profit margins signal healthy pricing power and cost control, even if the share price is falling.
Free cash flow – Strong and growing free cash flow gives a company flexibility to invest, return capital, or weather tough periods. Weak or negative free cash flow is a red flag.
Insider buying – Significant purchases by executives can be a positive signal, since they have the most intimate knowledge of the business.
If the drop stems from a broad market or industry sell-off rather than company-specific problems, and the above metrics still look solid, buying the dip can make sense. If fundamentals have worsened, the decline may continue.
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