HERE'S WHAT'S GOING ON

08/05/26 HERE'S WHAT'S GOING ON Market Update: Wednesday Morning, August 5th, 2026 IN THE STOCK MARKET RECORD BREAKING DAY THE DOW CLOSED ABOVE 54,000 FOR THE FIRST TIME EVER AND THE S&P HIT A FRESH RECORD HIGH SO LET'S TALK ABOUT TWO THINGS DROVE IT SO FIRST OIL US CRUDE OIL FELL MORE THAN 5% AGAIN ON GROWING HOPES FOR A DEAL BETWEEN THE US AND IRAN AFTER TREASURY SECRETARY STEVE BESSENT SAID YESTERDAY THAT A DEAL COULD COME VERY SOON NOW CHEAPER OIL EASES INFLATION PRESSURES LITTLE BIT LESS LIKELY THAT THE FED WILL RAISE INTEREST RATES AND THAT PULLS INTEREST AND LOWER INTEREST RATES GIVE STOCKS A BOOST THAT'S THE SAME CHAIN REACTION THAT'S POWERED A LOT OF THIS WEEK'S RALLY THE CATCH IS THAT IT CAN EASILY REVERSE ON TODAY'S HEADLINES SHOULD A DEAL NOT EMERGE SO IT'S A FRAGILE KIND OF GOOD NEWS BUT HEY WE WILL TAKE WHAT WE CAN GET THESE DAYS SECOND REASON FOR THE RALLY EARNINGS YESTERDAY STARTED OUT STRONG WITH CATERPILLAR THE COMPANY THAT MAKES ALL THAT YELLOW CONSTRUCTION EQUIPMENT IT POSTED ITS FIRST EVER 20 BILLION DOLLAR QUARTER AND HAS A RECORD ORDER BACKLOG OF 72 BILLION DOLLARS WHY WELL TECH COMPANY THEY ARE STILL BENEFITING FROM THE AI DATA SOMEONE HAS TO BUILD AND POWER ALL OF THESE DATA CENTERS AND CATERPILLAR SELLS THE MACHINES AND GENERATORS THAT DO JUST THAT I WAS WATCHING THIS BECAUSE WALL STREET HAS SPENT WEEKS MONTHS ARGUING ABOUT WHETHER AI SPENDING IS SUSTAINABLE AND CATERPILLAR GIVES US SOME INSIGHT ON THIS WHEN A COMPANY THE LITERAL PICKS AND SHOVELS STILL HAS A RECORD BACKLOG RUSH HASN'T SLOWED DOWN YET THE STOCK JUMPED ALMOST 6% YESTERDAY ON THE NEWS PALANTIR WAS UP 29% AFTER REPORTING EARNINGS OVER TWO YEARS MONDAY EXCEEDED EXPECTATIONS IN MANY WAYS AND ITS CEO CALLED THE QUARTER OTHERWORLDLY CHIP STOCKS KEPT CLIMBING TOO STILL DIGGING OUT OF FELL INTO LAST MONTH NOW AFTER THE CLOSE TWO BIG NAMES BEAT EXPECTATIONS AND SAW THEIR STOCKS FALL ANYWAY AND THE CHIPMAKER DOUBLED ITS DATA CENTER UP 50% BUT ITS STOCK IS DOWN ALMOST 9% IN PRE MARKET TRADING RIGHT NOW AND SPACEX AND ITS VERY FIRST EARNINGS REPORT AS A PUBLIC COMPANY BEAT REVENUE ESTIMATES BY NEARLY $1 BILLION ABOUT 11% THIS MORNING SO WHY ONE WORD SPENDING INVESTORS ARE STILL REALLY ANXIOUS ABOUT HOW MUCH THESE COMPANIES ARE POURING INTO AI AMD'S CAPITAL SPENDING CAME IN ABOUT TRIPLE WHAT ANALYSTS EXPECTED AND SPACEX'S SPENDING SAW A BIGGER LIFT OFF THAN EXPECTED AS WELL WHEN A STOCK IS PRICED FOR PERFECTION MEANING THAT INVESTORS ALREADY HAVE REALLY HIGH HOPES EVEN A GREAT QUARTER ESPECIALLY IF THE CAPEX SPENDING IS HIGHER THAN EXPECTED NOW ON A DIFFERENT NOTE ARISTA NETWORKS WHICH MAKES THESE SWITCHES THAT WIRE UP AI DATA CENTERS AMONG OTHER THINGS THEY BEAT EXPECTATIONS IN THEIR EARNINGS RELEASE AFTER THE CLOSE THEY'RE UP OVER 11% IN PREMARKET RIGHT NOW THIS IS ANOTHER PICKS AND SHOVELS PLAY KIND OF LIKE CATERPILLAR THAT SHOWS US THAT AI SPENDING HASN'T SLOWED DOWN AT LEAST NOT YET FUTURES ARE UP AS OF NOW LOOKING AHEAD TODAY BRINGS SOME JOBS DATA AND EARNINGS FROM COMPANIES LIKE DISNEY UBER AND SHOPIFY WE WILL SEE HOW IT ALL SHAKES OUT FOR EVEN MORE DETAIL CLUB WEBSITE OR MY DAILY NEWSLETTER