From the Desk - Economic Commentary
Brandon Casey, Member Strategies - 8/6/2026
U.S. equity markets are mixed this morning as investors weigh another busy day of corporate earnings against signs of a still-resilient economy. The DJIA, coming off a record high close, is lower, while the S&P 500 and Nasdaq moved higher in early trading. Markets continue to track developments surrounding U.S.-Iran negotiations and energy prices as a deal to reopen the Strait of Hormuz is in the works.
Initial jobless claims totaled 199,000 for the week ending August 1, an increase of 1,000 from the prior week's revised level of 198,000. Initial claims were expected to increase to 204,000. The four-week moving average declined to 198,750, suggesting layoffs remain historically low despite some moderation in hiring activity across the economy. Continuing claims increased by 24,000 to 1.801 million.
The Bureau of Labor Statistics reported that nonfarm business productivity increased 1.4% in the second quarter of 2026, exceeding market expectations and accelerating from the revised 0.8% increase recorded in the first quarter. Output increased 1.7% while hours worked rose 0.3%, resulting in stronger productivity growth. At the same time, unit labor costs increased 1.3%, reflecting a 2.7% increase in hourly compensation that was partially offset by higher productivity. On a year-over-year basis, productivity was up 2.2%, while unit labor costs increased 1.4%.
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