US open: Stocks hit fresh highs as earnings strength fuels ongoing rally

(Sharecast News) - Both the S&P 500 and Dow Jones pushed to fresh record highs on Wednesday morning, extending their recent rally as investors digested another round of upbeat earnings and grew more optimistic about a nearterm reopening of the Strait of Hormuz.

As of 1520 BST, the Dow Jones Industrial Average was up 1.14% at 54,700.89, while the S&P 500 advanced 0.60% to 7,783.00 and the Nasdaq Composite came out of the gate 0.39% firmer at 26,689.10.

The Dow opened 615.01 points higher on Wednesday, building on solid gains recorded in the previous session on rising hopes of diplomatic progress in the Middle East after US Treasury Secretary Bessent claimed a final deal between the US and Iran to reopen the Strait of Hormuz could be reached this week. However, subsequent reports of a commercial vessel being struck by a projectile offshore Oman raised fears that obstacles likely still remained between Washington and Tehran.

As for Wednesday, SpaceX earnings were in focus at the open, with Elon Musk's newly listed firm delivering a strongerthanexpected Q2 in its first report as a public company, with revenue hitting $7.8bn and adjusted underlying earnings reaching $3.5bn, well ahead of forecasts. However, SpaceX's AI division remained a major drag, posting a $1.26bn operating loss as AI spend surged to $15.8bn, more than double the prior quarter - sending shares lower and fuelling concerns that its vast infrastructure push may struggle to generate adequate returns.

Chipmaker AMD also headed south in early trading after reporting adjusted earnings that came in only slightly ahead of Wall Street expectations.

In terms of Wednesday's earnings, Eli Lilly raised its fullyear revenue guidance to $85bn to $87bn on sustained demand for its GLP-1 weightloss and diabetes drugs, lifting shares in premarket, with the update coming a day after Novo Nordisk also upgraded forecasts, underscoring intensifying competition in a global obesitydrug market expected to top $100bn in the US by 2030.

Disney shares were also higher after its fiscal Q3 earnings beat expectations, with adjusted earnings per share of $2.06 topping forecasts and revenues up 7% at $25.17bn, while CVS Health posted a 7.3% rise in Q2 revenue to $106.1bn, GAAP EPS jumped to $2.31 and adjusted EPS to $2.58 as operating income nearly doubled to $4.7bn.

Uber's Q2 results landed broadly in line, with EPS at $0.81 and revenues up 12% at $14.19bn, while total bookings reached $58bn, slightly ahead of estimates. However, its Q3 outlook disappointed, with guidance for bookings and EPS coming in below Wall Street expectations.

Western Digital, DoorDash and Honeywell will report after the close.

On the macro front, US mortgage applications decreased by 2.9% in the week ended 31 July, according to the Mortgage Bankers Association, building on the prior week's 6.4% increase and marking the sharpest back-to-back decline in two months. Last week's drop came as benchmark mortgage rates increased, with the 30-year fixed contract rising to a one-year high of 6.81%, amid concerns that the Federal Reserve may not be able to fight inflation in the near term. Applications to refinance a mortgage, which are more sensitive to week-to-week interest changes, dropped 2% week-on-week, while applications to purchase a home fell by 4%.

Elsewhere, US private employers added 44,000 jobs in July, according to Automatic Data Processing, the lowest reading in six months. July's reading follows a downwardly revised print of 95,000 in June and came in well and truly short of expectations of an increase of 70,000. All of July's growth came from the services sector, which added 47,000 while goods-producing companies reported a drop of 3,000.

On another note, US privatesector growth accelerated sharply in July, with both S&P Global's services and composite purchasing managers' indexes hitting ninemonth highs as stronger demand, firmer business confidence and rising employment signalled a solid start to the second half of 2026. The composite PMI rose to 54.5 from 51.9, its strongest reading since October 2025 and above the flash estimate, driven by faster services growth and steady manufacturing output. The services PMI also strengthened, rising to 54.6, supported by the steepest rise in new orders since late 2025, though export demand weakened amid higher tariffs and Middle East tensions. Inputcost inflation accelerated to its highest level since November 2022, pushing outputprice inflation to a oneyear high.

Finally, the Institute for Supply Management's services sector PMI continued to expand in July, edging up to 54.1 from 54.0 in June, though coming in slightly below the 54.5 expected by economists. Survey respondents reported fewer mentions of tariff impacts and Middle East tensions than in recent months, while major events such as the World Cup were again cited as supporting business activity and new orders. ISM survey chair Steve Miller said the services economy "continues to be resilient", though he noted that concerns persist around mortgage and inflation pressures, alongside ongoing pricing impacts from the recent rise in petroleum costs.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Amgen Inc. (AMGN) $412.32 8.49%

Intel Corp. (INTC) $100.04 4.11%

Walt Disney Co. (DIS) $100.75 3.02%

Caterpillar Inc. (CAT) $901.88 2.26%

Goldman Sachs Group Inc. (GS) $1,069.99 1.86%

Cisco Systems Inc. (CSCO) $122.00 1.73%

Apple Inc. (AAPL) $307.78 1.58%

Travelers Company Inc. (TRV) $383.73 1.25%

Salesforce.Com Inc. (CRM) $193.53 1.23%

American Express Co. (AXP) $349.70 1.11%

Dow Jones - Fallers

Verizon Communications Inc. (VZ) $45.78 -1.45%

Procter & Gamble Co. (PG) $146.18 -1.39%

Dow Chemical Co. (DOW) $29.77 -1.22%

Chevron Corp. (CVX) $189.27 -0.67%

International Business Machines Corporation (CDI) (IBM) $234.66 -0.53%

Coca-Cola Co. (KO) $86.70 -0.09%

Visa Inc. (V) $369.89 0.12%

S&P 500 - Risers

Perrigo Company plc (PRGO) $12.98 22.45%

Ipg Photonics Corp. (IPGP) $98.35 12.22%

Wynn Resorts Ltd. (WYNN) $108.27 10.57%

Amgen Inc. (AMGN) $412.32 8.49%

Borg Warner Inc. (BWA) $68.10 8.20%

International Flavors & Fragrances Inc. (IFF) $86.04 7.04%

Newmont Corporation (NEM) $103.89 6.30%

Fastenal Co. (FAST) $50.35 6.20%

Eli Lilly and Company (LLY) $1,187.59 6.07%

Booking Holdings Inc. (BKNG) $205.44 5.67%

S&P 500 - Fallers

DaVita Inc (DVA) $190.10 -16.49%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

CVS Health Corp (CVS) $98.20 -5.55%

Idexx Laboratories Inc. (IDXX) $585.46 -4.48%

Celanese Corp. (CE) $42.88 -4.35%

Crown Castle International (CCI) $73.79 -4.24%

American Tower Corp (Reit) (AMT) $167.64 -4.00%

Eog Resources Inc. (EOG) $138.35 -3.64%

Advanced Micro Devices Inc. (AMD) $488.43 -3.50%

Baxter International Inc. (BAX) $27.22 -3.32%

Nasdaq 100 - Risers

Wynn Resorts Ltd. (WYNN) $108.27 10.57%

Amgen Inc. (AMGN) $412.32 8.49%

Fastenal Co. (FAST) $50.35 6.20%

Booking Holdings Inc. (BKNG) $205.44 5.67%

KLA-Tencor Corp. (KLAC) $198.34 5.67%

Micron Technology Inc. (MU) $907.85 5.45%

Skyworks Solutions Inc. (SWKS) $67.35 4.93%

O'Reilly Automotive Inc. (ORLY) $93.74 4.67%

Expedia Group Inc. (EXPE) $318.22 4.65%

Biogen Inc (BIIB) $211.45 4.47%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Idexx Laboratories Inc. (IDXX) $585.46 -4.48%

Kraft Heinz Co. (KHC) $25.41 -3.29%

Henry Schein Inc. (HSIC) $88.35 -3.19%

Liberty Global plc Series A (LBTYA) $10.60 -2.91%

Liberty Global plc Series C (LBTYK) $10.33 -2.30%

Take-Two Interactive Software Inc. (TTWO) $238.65 -2.17%

Vodafone Group Plc ADS (VOD) $15.40 -1.81%

NetEase Inc. Ads (NTES) $128.00 -1.46%

DENTSPLY Sirona Inc. (XRAY) $13.90 -1.41%