Wall Street looks to be headed for another split session on Thursday, with Dow stocks on the rise and the broader market suffering a bit of buyer's remorse, as speculators backed off Wednesday.
Who can blame shareholders for taking some profits? The Shiller PE (CAPE) stands at 42.19, the second highest ever, the Dow and S&P have just made new all-time highs and the NASDAQ, though still technically in a corrective mode, is just percentage points of its own all-time high.
One cause for concern among the tech names is AppLovin (APP), a darling of speculators who sent the stock up above $700/share, just got hit with a big earnings miss. AppLovin reported a Q2 2026 revenue of $1,923.69 million, narrowly missing the estimated $1,942.00 million, while reported adjusted EPS came in at $3.76, falling short of the estimated $4.21. In pre-market trading, shares are down more than 18%, hovering around $340/share. The price cut in half in just eight months, there doesn't seem to be much tolerance for under-performance. In other words, AppLovin isn't getting much Lovin'.
Stocks futures are mixed, with NASDAQ futures down 236 points, while S&P futures are up 4.50 and Dow Futures ahead by 97 points.
Gold and silver have been rallying the past few days, with gold now back above $4,300 per ounce and silver above $61, both poised for major breakouts, maybe, someday.
Earnings reports continue to flow, though most of the big names have already come and gone. Friday's Non-farm payroll data will be the key to close out the week Friday.
It's a trader's market, with some degree of quiet in the Middle East. WTI crude oil is trading around $76/barrel, a reasonable level given the current state of affairs with Iran, Oman and the Strait of Hormuz.
At the Close, Wednesday, August 5, 2026:
Dow: 54,349.12, +263.24 (+0.49%)
NASDAQ: 26,363.44, -221.55 (-0.83%)
S&P 500: 7,723.55, -12.97 (-0.17%)
NYSE Composite: 24,513.81, +50.95 (+0.21%)
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