Dow and S&P 500 Hit Fresh Records as Earnings Season Delivers Broad-Based Beat; SpaceX and AMD Slide Despite Strong Results

Mumbai, Aug 5: US equity benchmarks extended their winning streak to a fifth consecutive session on Wednesday, with the Dow Jones Industrial Average and the S&P 500 notching fresh all-time highs, as investors digested a torrent of corporate earnings that largely surpassed Wall Street expectations. The tech-heavy Nasdaq Composite also advanced, though gains were tempered by sharp declines in recently listed SpaceX and semiconductor bellwether AMD, both of which reported better-than-expected results but failed to satisfy investor appetite for exceptional performance. 

S&P 500 and Dow Scale New Peaks as Five-Day Rally Gathers Pace 

The S&P 500 (^GSPC) rose 0.58% to 7,781.48, while the Dow Jones Industrial Average (^DJI) surged 0.87% to 54,558.16, establishing new record closing levels. The Nasdaq Composite (^IXIC) added 0.37% to 26,682.58, underperforming its peers. The three indexes are now tracking their best five-day performance since April 2025, with the S&P 500 gaining more than 6% over the past week. 

The rally was underpinned by a combination of robust corporate earnings and growing optimism surrounding a potential US-Iran agreement to reopen the Strait of Hormuz, a critical chokepoint for global oil shipments. President Donald Trump signalled that a deal could materialise as early as Wednesday, according to Bloomberg, reversing a two-day decline in oil prices. Brent crude futures rose 1% to approximately $80 per barrel, while West Texas Intermediate edged up to around $76. 

Eli Lilly and Disney Lead Blue-Chip Gains with Earnings Surprises 

Among the standout performers, Eli Lilly (LLY) shares surged 5.5% after the pharmaceutical giant delivered a staggering earnings beat. The company reported second-quarter revenue of $22.97 billion, a 48% year-over-year increase, handily surpassing analyst expectations of $20.73 billion. On an adjusted basis, Eli Lilly earned $8.38 per share, compared with the $6.01 consensus estimate. The outperformance was driven by sustained demand for its GLP-1 therapies, Mounjaro and Zepbound, prompting the company to raise its full-year revenue guidance to a range of $85 billion to $87 billion. 

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Walt Disney (DIS) advanced 3% after reporting fiscal third-quarter adjusted earnings of $2.06 per share, topping the $1.85 analyst estimate. Revenue of $25.25 billion rose 6.8% year-over-year but narrowly missed expectations of $25.41 billion. The entertainment giant credited global growth in its Experiences segment, the successful theatrical and merchandise release of “Toy Story 5,” and strong ESPN viewership during the NBA playoffs. Disney also announced a new partnership with TikTok, granting creators access to assets from hundreds of films and series, with short-form videos set to live on the Disney+ app. 

Shopify and Arista Networks Soar on AI-Driven Growth; Booking Holdings Beats on Travel Demand 

Shopify (SHOP) emerged as one of the session’s biggest gainers, skyrocketing 18.26% after reporting second-quarter revenue of $3.58 billion, a 34% year-over-year increase that surpassed the $3.45 billion consensus estimate. Gross merchandise volume climbed 32% to $115.57 billion, while gross profit reached $1.71 billion, up 31%. The company also issued a robust third-quarter outlook, projecting revenue growth in the low-thirties percentage range. 

Arista Networks (ANET) jumped 12% after reporting its first $3 billion revenue quarter. Revenue of $3.036 billion represented a 37.7% year-over-year increase, comfortably beating the $2.83 billion consensus. Adjusted earnings per share of $1.02 topped estimates of $0.88. The networking equipment maker raised its full-year 2026 revenue guidance to $12.6 billion, implying 40% annual growth—its third guidance increase of the year. 

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Booking Holdings (BKNG) rose 6.87% after reporting adjusted earnings of $2.54 per share on revenue of $7.35 billion, both exceeding analyst expectations. Revenue grew 8% year-over-year, while adjusted EBITDA climbed 9% to $2.65 billion. The company returned a record $4.1 billion to shareholders through buybacks and dividends during the quarter. 

SpaceX and AMD Tumble Despite Beating Estimates as Investor Expectations Remain Elevated 

SpaceX (SPCX) shares plunged nearly 12% in its first earnings report since going public in June. The Elon Musk-led company reported revenue of $7.81 billion, a 92% year-over-year surge that exceeded the $6.93 billion consensus. However, capital expenditures skyrocketed sixfold to $18.4 billion in the second quarter, with the majority allocated to artificial intelligence infrastructure. The company’s net loss narrowed to $541 million from $1 billion a year earlier, while the AI segment alone posted an operating loss of $1.26 billion. Investors remained jittery about the pace of spending, with the stock having shed 16% since its IPO opening at $150. 

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AMD (AMD) declined 5.96% despite reporting record second-quarter revenue of $11.5 billion, up 50% year-over-year and surpassing the $11.25 billion consensus. Adjusted earnings per share of $1.66 topped estimates of $1.60. The Data Center segment, which represented 58% of company revenue, more than doubled year-over-year to $6.7 billion. CEO Dr Lisa Su characterised the quarter as “excellent,” but analysts had priced in expectations for exceptional results, leading to profit-taking. 

Amgen, Gilead Sciences, and Kratos Deliver Strong Results; Guidance Raised Across the Board 

Amgen (AMGN) rose 5.98% after reporting second-quarter revenue of $10.1 billion, a 10% year-over-year increase that beat the $9.40 billion consensus. Adjusted earnings per share of $6.29 surpassed the $5.60 estimate by 12.3%. The company raised its full-year revenue guidance to $38.2 billion–$39.4 billion, up from $37.1 billion–$38.5 billion previously. 

Gilead Sciences (GILD) gained 1.21% after reporting total revenue of $7.8 billion, a 10% year-over-year increase that topped the $7.35 billion consensus. HIV product sales grew 12% to $5.7 billion, while the company’s PrEP business exceeded $1 billion in quarterly sales for the first time. 

Kratos Defense & Security Solutions (KTOS) reported second-quarter revenue of $458.8 million, representing 30.5% year-over-year growth and an 11.6% beat over the $411.2 million consensus. Adjusted earnings per share of $0.21 exceeded the $0.15 estimate by 44.4%. The company raised its full-year organic revenue growth forecast to 19%–23%, up from 15%–20% previously. 

Pacira BioSciences and Toast Deliver Mixed Results; Zeta Global and trivago Showcase Strong Revenue Momentum 

Pacira BioSciences (PCRX) reported second-quarter revenue of $192.4 million, a 6% year-over-year increase that beat the $191.06 million consensus. The company swung to a GAAP net income of $4.7 million, or $0.12 per share, compared with a loss of $4.8 million in the prior-year period. Adjusted EBITDA reached approximately $48.7 million. 

Toast (TOST) delivered revenue of $1.91 billion, up 23.1% year-over-year and beating the $1.87 billion consensus. GAAP earnings per share of $0.26 surpassed the $0.20 estimate, while adjusted EBITDA of $221 million included a one-time benefit of approximately $10 million from tariff refunds. 

Zeta Global Holdings (ZETA) reported revenue of $443 million, up 44% year-over-year and exceeding the $420.66 million consensus. Adjusted EBITDA rose 56% to $92 million, with margin expanding 170 basis points to 20.7%. The company raised its full-year revenue guidance midpoint by $33 million to $1.818 billion, implying 39% growth. 

trivago (TRVG) delivered its sixth consecutive quarter of double-digit revenue growth, with total revenue rising 21% year-over-year to €168.4 million. The company raised its full-year revenue outlook to mid-teens percent growth and increased its Adjusted EBITDA guidance to approximately €30 million. 

Astera Labs, BlackLine, and Opendoor Showcase Divergent Fortunes in Tech and Real Estate 

Astera Labs (ALAB) jumped 12.65% after reporting record second-quarter revenue of $392.4 million, up 27% sequentially and 104% year-over-year. Non-GAAP gross margin was 73.7%, above guidance of 73%, while non-GAAP operating margin expanded 290 basis points to 39.1%. The company’s Scorpio AI Fabric switches achieved volume production, with Scorpio expected to become the largest product family in the third quarter—one quarter ahead of expectations. Management issued a robust third-quarter revenue guidance of $540 million to $560 million, representing 40% sequential growth at the midpoint, with operating margin expected to reach approximately 43%. 

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BlackLine (BL) fell 4.59% despite reporting second-quarter revenue of $187.8 million, up 9.2% year-over-year and in line with the $188.56 million consensus. Annual recurring revenue grew to $719 million, up 6%, while remaining performance obligations exceeded $1.1 billion, growing 17%. However, the company cited approximately $8 million of expected deals that slipped due to elongated sales cycles, with AI-related scrutiny from customers extending deal timelines by 40–45 days. Dollar-based net revenue retention was 102.4%, lower than historical levels due to reduced user adds and platform migration. 

Opendoor Technologies (OPEN) declined 8.80% after reporting second-quarter homes acquired of 6,981, representing a 77% quarter-over-quarter and 149% year-over-year increase. Contribution margin improved to 5.8%, within the company’s target range of 5–7%, while marketing efficiency improved dramatically with marketing spend reduced to $5 million from $19 million in the prior quarter. However, the company faces seasonality headwinds, with third-quarter contribution margin expected to decline to 4–4.5% from 5.8% in the second quarter. Approximately 100 legacy homes from the ‘OpenDoor 1.0’ era are expected to be sold mostly in the third quarter, negatively impacting margins. 

Lumen Technologies and Wynn Resorts Deliver Resilient Results Amidst Transformation Efforts 

Lumen Technologies (LUMN) reported second-quarter revenue of $2.805 billion, a 9.3% year-over-year decline that nonetheless met the $2.80 billion consensus. The company generated net cash provided by operating activities of $971 million, compared with $570 million in the prior-year period, and free cash flow, excluding special items, of $327 million, up from negative $209 million in the year-ago period. Strategic revenue increased to approximately 53% of total business revenue, up from 51% in the first quarter. The company reiterated its full-year adjusted EBITDA, excluding special items, guidance of $3.1 billion to $3.3 billion. 

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Wynn Resorts (WYNN) reported second-quarter operating revenues of $1.86 billion, a 6.8% year-over-year increase that surpassed the $1.84 billion consensus. Net income attributable to Wynn Resorts was $140.1 million, or $1.32 per diluted share, compared with $66.2 million, or $0.64 per share, in the prior-year period. Adjusted Property EBITDAR was $568.3 million, up from $552.4 million in the second quarter of 2025. The company declared a cash dividend of $0.25 per share, payable on August 28, 2026. Wynn Al Marjan Island, the integrated resort being developed in the UAE, is now expected to open in September 2027. 

Devon Energy and Suncor Energy Surpass Estimates as Oil Prices Rebound 

Devon Energy (DVN) reported second-quarter earnings of $1.57 per share, beating the Zacks Consensus Estimate of $1.30 by 20.77%. This compares with earnings of $0.84 per share in the year-ago period. Revenue of $7.42 billion for the quarter exceeded the Zacks Consensus Estimate by 17.76%, compared with year-ago revenue of $4.28 billion. 

Suncor Energy (SU) reported second-quarter earnings of $2.33 per share, surpassing the $2.14 consensus estimate by 8.88%, compared with earnings of $0.51 per share in the prior-year period. Revenue of $12.67 billion exceeded the Zacks Consensus Estimate by 22.36%, versus year-ago revenue of $8.6 billion. Both energy companies benefited from improved commodity prices and operational efficiencies. 

CVS Health and Pinterest Slide on Disappointing Guidance; Uber Falls on Soft Bookings Outlook 

CVS Health (CVS) declined 3% despite reporting second-quarter earnings of $2.58 per share, well above the $1.85 FactSet consensus, and revenue of $106.1 billion versus the $100.03 billion estimate. The health company also increased its EPS guidance to $7.90–$8.10 from $7.30–$7.50. However, concerns over integration costs and competitive pressures in the pharmacy benefit management space weighed on the stock. 

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Pinterest (PINS) fell more than 8% after issuing third-quarter revenue guidance of $1.19 billion to $1.21 billion, in line with the $1.20 billion consensus but disappointing investors seeking a stronger outlook following another quarter of robust growth. The company reported second-quarter revenue of $1.18 billion, up 18% year-over-year, and monthly active users of 640 million, an 11% increase marking its 11th consecutive quarter of double-digit user growth. However, Pinterest swung to a net loss of $46.7 million, or $0.08 per share, from net income of $38.8 million in the year-ago period, missing analyst expectations by $0.09 per share. 

Uber Technologies (UBER) declined 4.5% after the ride-hailing company issued a third-quarter bookings forecast of $59.25 billion at the midpoint, trailing the $59.33 billion StreetAccount estimate, and earnings guidance of $0.84–$0.88 per share, below the $0.89 average analyst estimate. Second-quarter revenue of $14.19 billion missed the $14.24 billion consensus, while earnings of $0.81 per share came in line with expectations. 

ADP Jobs Data Shows Slowing Private Sector Hiring Amidst Wage Growth Acceleration 

Adding to the session’s data flow, payrolls processing firm ADP reported that private employers added 44,000 jobs in July, significantly below the 75,000 Dow Jones forecast and the downwardly revised 95,000 recorded in June. However, the apparent weakness in the payrolls count obscured notable strength in wage growth, with pay growth for job-changers rising to 7% year-over-year in July—the largest yearly increase since August 2025. Pay gains for job-stayers remained flat at 4.4%. ADP chief economist Nela Richardson noted that “job-changers are highly sensitive to real-time economic conditions, and their rapid pay growth implies supply constraints in parts of the labour market.” 

Wednesday’s session underscored the elevated bar facing technology and AI-focused companies, with SpaceX and AMD demonstrating that earnings beats alone may not suffice when investor expectations have been calibrated for extraordinary performance. Conversely, traditional sectors—pharmaceuticals, entertainment, and defence—delivered robust results that were rewarded accordingly. The ADP jobs print, while softer than anticipated, suggests wage pressures persist, keeping the Federal Reserve’s tightening bias firmly in view. Oil markets remain sensitive to geopolitical developments, with any progress on US-Iran peace talks likely to exert further downward pressure on crude prices.