Daily Rundown

August 5, 2026

Chart of the Day

Number of the Day

17.6

The annualized percentage change in core capital goods orders in the second quarter, up from 11.8 percent in Q1 and the fastest pace since the first quarter of 2021

Quote of the Day

“There is a lot of discussion around AI demand. We have constant discussions with our customers and all I can tell you is no one is slowing down at the moment.”

Caterpillar CEO Joseph Creed

Tuesday’s Highlights

Job openings (June) fell by 178,000 to 7.4 million. Hires and quits were both up, however.

Factory orders (June) fell by 0.3 percent even as core capital goods orders jumped 1.2 percent.

The trade deficit (June) narrowed to $73.3 billion from a prior $77.6 billion.

SpaceX AI capex (Q2) came in a $15.8 billion, more than double the level in Q1.

Caterpillar revenue (Q2) jumped 24.0 percent year-over-year, led by the AI buildout.

McDonald’s same-store sales (Q2) were up 1.3 percent year-over-year, the weakest in five quarters.

Quick Commentary

Job openings have stopped falling this year, but the recovery thus far has been halting in another sign that the labor market remains shaky even as it has found somewhat firmer footing of late. At this point, however, virtually every fundamental factor is taking a back seat to the AI boom, which continues to strengthen to keep the overall economy on a steady growth path. The risks will be sizeable once the capex cycle turns, but a broader downturn is highly unlikely in the interim.

Today’s Highlights

ISM services survey

ADP employment

Mortgage applications

Daily Trivia

What popular product failed in its initial incarnation as “Press ‘n’ Peel”, a sticky bookmark page holder?

(Tuesday’s Question: Copper takes its name from what modern-day country, a major producer and exporter of the metal during the Bronze Age? Answer: Cyprus)