News

The U.S. EIA crude oil inventories, Cushing crude oil inventories, and strategic petroleum reserve inventories for the week ending July 31 will be released in ten minutes.

The U.S. Department of Energy has approved a $489.4 million loan to Amanecer Puerto Rico, a subsidiary of Pattern Energy.

The United States has removed Fly Baghdad from its sanctions list.

The U.S. ISM non-manufacturing supplier deliveries index for July was 52.8, compared to 54.4 in the previous month.

The U.S. ISM non-manufacturing price index for July was 70.3, compared to 67.7 in the previous month.

The US ISM non-manufacturing new orders index for July was 57.2, compared to 55.1 in the previous month.

The US July ISM non-manufacturing PMI was 54.1, below the expected 54.5 and the previous reading of 54.

The U.S. ISM non-manufacturing employment index for July was 47.4, compared to 51.2 in the previous month.

European natural gas prices fell to €52.78 per megawatt-hour, a drop of 5.6%.

Indian Ministry of External Affairs: Indian Foreign Minister visits Sri Lanka.

The US ISM non-manufacturing PMI for July will be released in ten minutes.

The final reading of the S&P Global Composite PMI for July in the United States was 54.5, compared with 53.6 in the previous month.

The final reading of the S&P Global Services PMI for July in the United States was 54.6, compared to 53.6 in the previous month.

Nvidia (NVDA.O) rose more than 4% to $220.43 per share, a new high since June 4, with a total market capitalization of $5.33 trillion. Nvidia's stock price has risen for five consecutive days.

U.S. telecom stocks fell after SpaceX (SPCX.O) revealed plans to build a comprehensive mobile service. Verizon (VZ.N) dropped 2%, and AT&T (T.N) fell 2.5%.

The Dow Jones Industrial Average opened 381.35 points higher, or 0.71%, at 54,467.23 on Wednesday, August 5th; the S&P 500 opened 50.32 points higher, or 0.65%, at 7,786.81; and the Nasdaq Composite opened 112.83 points higher, or 0.42%, at 26,697.82.

U.S. stocks opened higher, with the Dow Jones Industrial Average up 0.33%, the S&P 500 up 0.56%, and the Nasdaq Composite up 0.39%. SpaceX (SPCX.O) fell 10.5% amid concerns over its surging AI spending. AMD (AMD.O) fell 7% after disappointing Q2 results and outlook. Shopify (SHOP.N) rose 20%. Gold briefly climbed above $4,200, with Harmony Gold (HMY.N) up 7.5% and Goldfields (GFI.N) up 8.3%. Storage-related stocks declined slightly.

Wolfgang Pustätter, a former Austrian defense attaché and current security policy and defense analyst, said it was too early to draw conclusions, although an agreement on the Strait of Hormuz might be reached today or Thursday. Pustätter stated that the parties involved in the mediation are currently “working to clarify some key clauses in a very weak memorandum of understanding, which is precisely what has led to the renewed violence.” He added that if the agreement between Iran and Oman confirms that there will be no tolls, but only fees for maritime services, the US would likely accept it. However, if Iran attempts to impose high tolls or large fees, which clearly violate the UN Convention on the Law of the Sea, the US will certainly refuse. He said, “This is not only because of the current situation in the Strait of Hormuz, but more importantly, it could set a precedent for other strategic maritime chokepoints.” Pustätter also explained the inconsistencies in Trump's statements, believing this to be part of the US information warfare strategy against Iran. He pointed out that Trump actually employed three different narratives targeting "three different audiences," including Trump's Republican voters, Iranians, and the international audience. Puste concluded by stating that reopening the Strait of Hormuz is undoubtedly an important step, but it cannot resolve the broader regional conflicts.

1. Morgan Stanley: Rating "Overweight", target price $300. "Our full-year 2027 revenue forecast is $102 billion, implying that the company's total annual recurring revenue is expected to exceed $100 billion by the end of 2026, with little room for further acceleration. This is primarily due to our assumption that computing prices will normalize in the fourth quarter of 2027 as market saturation increases; however, if this scenario does not occur, then AI revenue in 2027 will be an additional $42 billion on top of our forecast." 2. Wells Fargo: Rating "Overweight", target price lowered from $230 to $215. "Management believes that ground computing capacity will reach over 8 gigawatts in 2027, achieving the 2028 target ahead of schedule. Given this ambitious target, we assume some delays and forecast 5 gigawatts of new computing capacity in 2027, still higher than the 1.5 gigawatts increase in 2026. We expect new capacity to slow to 2.5 gigawatts in 2028, down from our previous forecast of 4.1 gigawatts." 3. Deutsche Bank: Rating "Buy", target price $235. "Looking ahead, driven by its AI business, SpaceX's short-term growth trajectory will be stronger than we previously expected, therefore we have raised our forecast, believing it is poised to reach $100 billion in annual revenue sooner. Overall, we remain strongly bullish on SpaceX's long-term prospects, but acknowledge the recent significant pressure on the share price." 4. Goldman Sachs: Rating "Buy", target price $220. "In the short term, we expect the share price to remain volatile, as the additional liquidity from the expiration of the first lock-up period could lead to more divergent share prices in the coming days. Furthermore, the company still faces several long-term development issues or controversies, including Starship launch pacing, Starlink broadband and mobile business expansion, and orbital computing. While we hold a generally more positive and constructive view, these issues are unlikely to be resolved in the coming months or quarters." 5. Citigroup: Rating "Buy", target price $200. "We previously described the next two to three years as a period of extremely rich catalysts, and management has clearly gained insights and made new discoveries. Their optimism is reflected in bringing forward the approximately $1 trillion revenue target by one year to 2030, and even 'potentially as early as 2029.' If the target is achieved, this will far exceed the market's general expectations of $232 billion in 2029 and $372 billion in 2030." 6. JPMorgan Chase: Rating "Overweight," target price raised from $225 to $240. "SpaceX is leveraging its engineering capabilities in rockets and satellites to scale data centers faster than the industry average. In terms of profitability, in addition to partnerships with Anthropic, Google, and Reflection AI, SpaceX has also signed a six-month cloud service contract with another customer, which will take effect in October. SpaceX also believes that the long-standing supply-demand imbalance in computing could allow its Vera Rubins to sell for $30-50 per watt, far exceeding our previous forecast of $11-16 per watt for the next few years." 7. UBS: Rating "Buy", target price $210. "We believe SpaceX is making significant strides across all its businesses—the Starship project is making major progress; Starlink revenue growth is expected to reach an inflection point with the deployment of approximately 1,000 V3 satellites; and the company is closing the gap with Grok and plans to add 3 to 7 gigawatts of computing power next year. This means that by the end of 2027, the company's total computing power will reach 5 to 10 gigawatts or more, higher than our previous forecast of 4 gigawatts."

A Goto survey shows that 30% of American employees say they can no longer live without artificial intelligence.