Weekly Market Update: August 3, 2026

Market Update
Written By Trey Kerns

Week Ending July 31, 2026:

S&P 500: +1.03%
NASDAQ Composite: +1.77%
Dow Jones Industrial Average: +0.53%

Market Takeaway

U.S. equity markets finished the week ending July 31 higher, with the S&P 500, NASDAQ Composite, and Dow Jones Industrial Average all posting gains.

The S&P 500 rose 1.03%, the NASDAQ Composite gained 1.77%, and the Dow Jones Industrial Average increased 0.53%. The NASDAQ led the three major indices during the week, while the Dow also finished positive.

The week included a busy earnings calendar, several major economic reports, and a Federal Reserve interest rate decision. Investors evaluated earnings from several large-cap technology and consumer companies, including Microsoft, Meta Platforms, Apple, Amazon, and Coca-Cola.

Economic data showed a mixed but generally steady picture. Durable goods orders rose modestly, consumer confidence declined, second-quarter GDP grew at a slower pace than the first quarter, and PCE inflation moved lower on a monthly basis.

The Federal Reserve kept interest rates steady during the week, which kept monetary policy in focus. From a technical standpoint, the S&P 500 moved above its 50-day moving average and remained above its 200-day moving average. The NASDAQ remained below its 50-day moving average but stayed above its 200-day moving average. The Dow remained above both its 50-day and 200-day moving averages. The VIX ended the week at 15.99, lower than the prior week’s close.

Overall, the week reflected positive index performance, a busy earnings backdrop, mixed economic data, and continued attention on inflation, interest rates, and large-cap technology results.

Thematic Drivers of the Week

1. Large-Cap Earnings Were a Major Focus

What happened:

Several large-cap companies reported earnings during the week, including Coca-Cola, Microsoft, Meta Platforms, Apple, and Amazon.

The earnings results were mixed across companies. Coca-Cola, Microsoft, Apple, and Amazon reported EPS and revenue above expectations based on the earnings data provided. Meta Platforms reported revenue above expectations but EPS below expectations.

Why it mattered:

Earnings reports help show how a company is doing. They can give context on sales, costs, profit margins, and demand.

This week, investors focused on whether large technology companies were seeing business results that supported recent spending on artificial intelligence and cloud infrastructure. Microsoft and Amazon reported stronger EPS and revenue results based on the data provided. Meta reported revenue above expectations, but EPS came in below expectations. That showed results were not the same across all mega-cap companies.

Market reaction:

The major indices finished higher for the week, with the NASDAQ leading the S&P 500 and Dow. However, the earnings picture was not uniform across all large-cap companies. This created a market environment where company-specific results mattered.

2. Economic Reports Painted a Mixed Picture

What happened:

Several economic reports were released during the week, including Durable Goods Orders, Consumer Confidence, GDP, and Personal Income and Outlays / PCE Inflation.

Durable goods orders increased modestly in June. Consumer confidence declined in July. Second-quarter GDP showed the economy continued to grow, but at a slower pace than in the first quarter. The PCE price index declined on a monthly basis but remained higher than a year earlier.

Why it mattered:

Economic reports help show how different parts of the economy are doing.

This week, the data was mixed. Durable goods orders improved modestly, consumer confidence moved lower, GDP still grew but at a slower pace, and monthly PCE inflation moved lower. No single report told the full story.

Market reaction:

Markets moved higher for the week while investors reviewed several crosscurrents. The data showed some areas of strength and some areas of caution, which made the broader economic picture more balanced than any single report might suggest.

3. Sector Leadership Was Uneven

What happened:

Sector performance varied during the week. Consumer Discretionary was the best-performing sector based on the data provided, advancing 6.1%. Utilities were the weakest sector, declining 4.2%.

The data provided identified Amazon’s post-earnings move as one contributor to Consumer Discretionary performance during the week.

Why it mattered:

Sector performance helps show which parts of the market did better or worse during the week.

Consumer Discretionary led, while Utilities lagged. That means the market’s gains were not spread evenly across every sector.

Market reaction:

The broader market moved higher, but sector results were mixed. Consumer Discretionary led the week, while Utilities lagged. This showed that positive index performance still came with differences beneath the surface.

Earnings Recap: Key Companies in Focus

Coca-Cola (KO) - Reported July 28

Results:

  • Estimated EPS: $0.93

  • Actual EPS: $0.97

  • Result: Beat by 4.05%

  • Revenue: Beat by 1.56%

Takeaway:

Coca-Cola reported EPS and revenue above expectations based on the earnings data provided. The results may provide insight into beverage demand, pricing, margins, and consumer spending behavior.

Microsoft (MSFT) - Reported July 29

Results:

  • Estimated EPS: $4.24

  • Actual EPS: $4.74

  • Result: Beat by 11.81%

  • Revenue: Beat by 2.71%

Takeaway:

Microsoft reported EPS and revenue above expectations based on the earnings data provided. The results may provide insight into cloud demand, enterprise software, AI-related spending, and technology margins.

Meta Platforms (META) - Reported July 29

Results:

Estimated EPS: $7.40

Actual EPS: $6.18

Result: Missed by 16.47%

Revenue: Beat by 0.85%

Takeaway:

Meta Platforms reported revenue above expectations, while EPS came in below expectations based on the earnings data provided. The results may provide insight into digital advertising, AI investment, user engagement, and operating expense trends.

Apple (AAPL) - Reported July 30

Results:

  • Estimated EPS: $1.89

  • Actual EPS: $2.02

  • Result: Beat by 6.74%

  • Revenue: Beat by 0.42%

Takeaway:

Apple reported EPS and revenue above expectations based on the earnings data provided. The results may provide context around iPhone demand, services revenue, margins, and global consumer electronics trends.

Amazon (AMZN) - Reported July 30

Results:

  • Estimated EPS: $1.82

  • Actual EPS: $5.75

  • Result: Beat by 216.02%

  • Revenue: Beat by 2.03%

Takeaway:

Amazon reported EPS and revenue above expectations based on the earnings data provided. The results may provide insight into e-commerce demand, cloud spending, advertising, margins, and AI infrastructure investment.

Major Economic Reports Recap

Durable Goods Orders - Released July 27

New orders for manufactured durable goods increased 0.3% in June to $334.8 billion, following a 4.0% decline in May.

Excluding transportation, new orders increased 0.6%. Excluding defense, new orders increased 0.3%. Computers and electronic products led the increase, rising 3.1% to $31.1 billion.

Economic Takeaway:

Durable goods orders rose slightly in June after falling in May. This showed some improvement in demand for longer-lasting goods, but the overall increase was modest.

Consumer Confidence - Released July 28

The Conference Board Consumer Confidence Index declined to 90.8 in July, down from an upwardly revised 92.2 in June.

The Present Situation Index fell to 114.9, while the Expectations Index remained unchanged at 74.7.

Economic Takeaway:

Consumer confidence moved lower in July. People felt a little worse about current conditions, while their outlook for the future was unchanged.

GDP - Released July 30

Real gross domestic product increased at an annual rate of 1.5% in the second quarter of 2026, compared with 2.1% growth in the first quarter.

The increase reflected gains in consumer spending, investment, and exports, partly offset by a decrease in government spending. Imports increased, which subtracts from GDP.

Real final sales to private domestic purchasers increased 3.9%, compared with 1.7% in the first quarter.

Economic Takeaway:

The economy still grew in the second quarter, but at a slower pace than in the first quarter. Under the surface, private demand improved, which means consumers and businesses were still spending.

Personal Income and Outlays / PCE Inflation - Released July 30

Personal income increased 0.2% in June, while disposable personal income also increased 0.2%.

Personal consumption expenditures increased 0.3%, and real PCE increased 0.4%.

The PCE price index decreased 0.1% month over month and increased 3.7% year over year. Core PCE, which excludes food and energy, increased 0.1% month over month and 3.3% year over year.

The personal saving rate was 2.7% in June.

Economic Takeaway:

Income and spending both increased modestly in June. Inflation moved lower for the month, but prices were still higher than they were a year earlier.

Technical Perspective

Based on the technical notes provided:

  • The S&P 500 moved above its 50-day moving average and remained above its 200-day moving average

  • The NASDAQ remained below its 50-day moving average and remained above its 200-day moving average

  • The Dow remained above its 50-day and 200-day moving averages

  • The S&P 500 and NASDAQ rebounded from recent pullbacks

  • The short-term technical picture improved based on the information provided

  • The VIX ended the week at 15.99, lower than the prior week’s close

Interpretation:

The technical picture improved during the week, but it was not the same for each index.

The S&P 500 moved back above its 50-day moving average. The NASDAQ stayed below its 50-day moving average. Both remained above their 200-day moving averages. The Dow stayed above both key moving averages.

The lower VIX showed that volatility eased during the week. Technical indicators can help explain what happened, but they do not tell us what markets will do next.

Key Takeaways for Investors

  • U.S. equity markets finished the week higher

  • The NASDAQ led the major indices for the week

  • Large-cap earnings were a major focus

  • Earnings results were mixed across some of the largest companies

  • Economic reports showed both strength and weakness

  • PCE inflation moved lower for the month, but prices were still higher than a year earlier

  • The VIX moved lower from the prior week

  • Sector leadership was uneven, with Consumer Discretionary leading and Utilities lagging

  • Weekly market moves can be reviewed in the context of diversification, risk tolerance, time horizon, cash flow needs, and long-term goals

Looking Ahead

Investors will be watching another busy week of earnings and economic reports including:

  • Large-cap technology and AI-related earnings

  • Semiconductor and data center demand

  • Healthcare, media, space-related, and platform company results

  • Manufacturing and services activity

  • Labor-market data

  • Trade, productivity, and business cost trends

Earnings to Watch This Week

Palantir (PLTR) - August 3

Palantir is scheduled to report second-quarter results after the market close on August 3. The company may provide insight into AI-related software demand, government and commercial customer activity, and broader investor interest in data analytics platforms.

AMD (AMD) - August 4

AMD is scheduled to report fiscal second-quarter results after the market close on August 4. Investors may monitor the results for updates on semiconductor demand, data center spending, AI infrastructure, and PC-related activity.

SpaceX (SPCX) - August 4

SpaceX is scheduled to post second-quarter 2026 financial and operational results after the market close on August 4. Management is also scheduled to host a live audio-only webcast that afternoon. The report may provide insight into launch activity, connectivity, infrastructure spending, and investor interest in space-related technology.

Eli Lilly (LLY) - August 5

Eli Lilly is scheduled to report second-quarter results on August 5. The report may provide insight into pharmaceutical demand, healthcare spending trends, and investor focus around major drug categories.

Disney (DIS) - August 5

Disney is scheduled to report fiscal third-quarter results before the market opens on August 5. The company may provide insight into streaming, parks and experiences, advertising, and broader consumer demand.

Uber (UBER) - August 5

Uber is scheduled to discuss second-quarter results on August 5. The report may provide insight into ride-sharing demand, delivery activity, consumer behavior, and platform-based business trends.

Economic Data to Watch

ISM Manufacturing PMI - August 3

The ISM Manufacturing PMI is scheduled for release on August 3. This report can provide insight into manufacturing activity, new orders, production, employment, and prices.

JOLTS Job Openings - August 4

The JOLTS report is scheduled for release on August 4. This report can provide context around labor demand, job openings, hiring, quits, and separations.

Trade Balance - August 4

The U.S. International Trade in Goods and Services report is scheduled for release on August 4. This report can provide insight into imports, exports, and trade’s contribution to economic growth.

ISM Services PMI - August 5

The ISM Services PMI is scheduled for release on August 5. This report can provide insight into activity across the services side of the economy, including business activity, new orders, employment, and prices.

Productivity & Costs - August 6

The preliminary Productivity and Costs report for the second quarter is scheduled for release on August 6. This report can provide context around worker productivity, labor costs, and business cost pressures.

Employment Situation - August 7

The July Employment Situation report is scheduled for release on August 7. This report includes nonfarm payrolls, the unemployment rate, labor force participation, and wage growth.

Closing Thought

Markets finished the week higher, but the details were still mixed. Earnings results varied across major companies, economic reports sent different signals, and sector leadership was uneven.

That type of week can be a reminder that market headlines rarely tell the full story. It can be helpful to look at what changed, what stayed steady, and how short-term developments fit within a broader financial plan.

Sources

Disclosure: This market update is for informational and educational purposes only and should not be considered investment advice or a recommendation to buy or sell any security. Market data and company results are subject to revision and interpretation. Past performance does not guarantee future results. Investing involves risk, including the potential loss of principal.

Trey Kerns https://KernsLegacyPlanning.com
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