US close: Stocks retreat after Dow record amid rising oil, heavy data slate

6th Aug 2026 22:38

(Sharecast News) - Major indices closed lower on Thursday after the Dow's fresh record high, with investors digesting news from the Middle East, more corporate earnings and a number of data points.

At the close, the Dow Jones Industrial Average was down 0.85% at 53,885.10, while the S&P 500 shed 0.18% to 7,709.96 and the Nasdaq Composite saw out the session 0.06% softer at 26,348.35.

The Dow closed 464.02 points lower on Thursday, more than reversing gains recorded in the previous session.

Oil prices pushed higher on Thursday as geopolitical risks resurfaced, with traders cautious over the outcome of Iran‑Oman talks on restoring shipping flows through the Strait of Hormuz and fresh reports of attacks on Saudi tankers adding to supply concerns. Brent crude was up 4.78% at $83.25 a barrel, while West Texas Intermediate gained 2.75% to $77.29.

Iran and Oman have agreed on geographic coordinates for a potential shipping corridor through the strait, with a joint announcement expected once outstanding issues are resolved, Iran's foreign ministry said on Wednesday. Reuters reported that a proposed deal aimed at easing the US‑Iran conflict would grant Tehran control over vessels entering the Gulf via the Strait of Hormuz - described by regional officials as one of the most significant concessions offered to Iran to date.

Iranian state news later reported that a draft plan regarding ship traffic conditions in the Strait would supposedly ban both US and Israeli ships from moving through. Fars also stated the plan was currently being looked over by an Iranian parliamentary committee.

In the corporate space, Restaurant Brands posted second‑quarter results that topped expectations, driven by a sharp acceleration in Burger King' US performance, with adjusted earnings per share coming in at $1.07, ahead of the $1.03 forecast, while net revenue rose 4.5% to $2.52bn, in line with Wall Street estimates. Burger King US same‑store sales jumped 8.5%, compared with 1.5% a year earlier.

Elsewhere, Warner Bros Discovery missed revenue expectations in Q2, as the absence of NBA rights and the release of Supergirl weighed on results. Revenues fell 11% to $8.7bn, below the $9.2bn consensus, while diluted earnings per share of $0.06 beat expectations for a $0.10t loss. The update comes as the company's proposed $110bn merger with Paramount remains tied up in legal challenges, with 12 state attorneys general and the Writers Guild of America seeking to block the deal on antitrust grounds. Streaming was a bright spot, with revenue up 10% to $3.1bn and underlying earnings surging 75% to $512m.

After the close, Lyft and Airbnb both delivered stronger‑than‑expected second‑quarter updates, with Lyft posting a 16% rise in revenue to $1.84bn, ahead of the $1.81bn consensus, helped by demand for higher‑value rides, international expansion and a lift from World Cup travel, particularly in host cities and airports. The company guided Q3 gross bookings to $5.5bn to $5.67bn, broadly in line with expectations at the midpoint.

Airbnb also beat forecasts, with revenues up 17% year‑on‑year to $3.61bn and EPS of $1.37, ahead of the $1.25 estimate. Net income rose to $816m from $642m a year earlier. The group issued an upbeat outlook, expecting Q3 revenue of $4.69bn-$4.77bn, above the $4.61bn consensus and implying around 14% growth at the midpoint.

On the macro front, US employers announced 33,429 job cuts in July, according to Challenger, Gray & Christmas, down 27% from June and 46% below the same month last year to mark the lowest monthly total in two years. Artificial intelligence remained the top driver of reductions for a fifth straight month, accounting for 10,970 cuts, while the tech sector once again led industry‑level declines with 9,867 planned layoffs, followed by financial services at 3,157, government at 2,962 and services at 2,581. So far this year, companies have announced 477,033 job cuts, down 41% from the 806,383 recorded in the first seven months of 2025. Hiring plans also improved, with employers announcing 16,095 new roles in July, the strongest July reading since 2022.

On another note, Americans lined up for unemployment benefits at an accelerated pace in the week ended 1 August, according to the Labor Department, with initial claims rising by 1,000 to 199,000, slightly below expectations for a reading of 202,000. Continuing claims rose by a sharper 24,000 to 1.8m, below expectations of 1.79m, while the four week-moving average, which aims to strip out week-to-week volatility, dropped by 4,500 to 198,750. Also of note, the advance seasonally adjusted insured unemployment rate came to 1.2% for the week ended 25 July, unchanged from the previous week's unrevised rate.

Still on data, US labour productivity picked up in the second quarter, according to preliminary figures from the Bureau of Labor Statistics on Thursday, with non‑farm business sector productivity rising 1.4% on an annualised basis as output increased 1.7%, hours worked edged 0.3% higher and productivity grew 2.2%. Unit labour costs rose 1.3% in the quarter, reflecting a 2.7% increase in hourly compensation and the productivity gain. Over the past four quarters, unit labour costs were up 1.4%. Real hourly compensation fell 3.1%, while the labour share of income dropped to 52.9% - the lowest level since the series began in 1947. Manufacturing productivity increased 1.9% in Q2, driven by a 4.6% rise in output and a 2.6% increase in hours worked. Durable goods productivity rose 2.7%, while non-durable productivity increased 2.0%. Manufacturing unit labour costs were unchanged in the quarter. The BLS also issued revisions to prior data, with non‑farm productivity for Q1 revised up to 0.8%, while manufacturing productivity for the same period was revised down to 1.9%. Unit labour costs in manufacturing were revised higher to 3.5%.

Finally, US wholesale sales fell in June, according to the Census Bureau, while inventories edged higher. Merchant wholesaler sales dropped 3.0% in June to $794.1bn after seasonal adjustment, though they remained 14.1% above year‑earlier levels. The prior month's gain was revised slightly higher, with April‑to‑May sales now estimated to have risen 3.5%. Inventories, on the other hand, ticked up 0.2% on the month to $944.7bn, and were 4.2% higher than in June 2025. The May‑to‑June change was revised down from the advance estimate of a 0.3% increase. The inventories‑to‑sales ratio stood at 1.19 in June, down from 1.30 a year earlier.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Walt Disney Co. (DIS) $104.68 2.87%

Dow Chemical Co. (DOW) $30.30 2.12%

Chevron Corp. (CVX) $189.23 1.51%

Microsoft Corp. (MSFT) $499.86 1.50%

Apple Inc. (AAPL) $312.41 1.44%

Verizon Communications Inc. (VZ) $46.99 1.12%

Travelers Company Inc. (TRV) $386.00 0.93%

McDonald's Corp. (MCD) $276.26 0.82%

Visa Inc. (V) $370.47 0.52%

Procter & Gamble Co. (PG) $146.97 0.12%

Dow Jones - Fallers

Boeing Co. (BA) $232.19 -3.33%

Salesforce.Com Inc. (CRM) $186.77 -3.22%

Goldman Sachs Group Inc. (GS) $1,032.58 -2.62%

Unitedhealth Group Inc. (UNH) $403.97 -2.13%

Amgen Inc. (AMGN) $404.85 -2.10%

American Express Co. (AXP) $342.60 -1.83%

Caterpillar Inc. (CAT) $856.96 -1.62%

Intel Corp. (INTC) $99.81 -1.14%

Nike Inc. (NKE) $42.00 -1.06%

International Business Machines Corporation (CDI) (IBM) $233.43 -1.06%

S&P 500 - Risers

Helmerich & Payne Inc. (HP) $37.07 11.39%

Motorola Solutions Inc (MSI) $474.07 8.20%

Parker-Hannifin Corp. (PH) $1,069.80 7.31%

Albemarle Corp. (ALB) $125.42 5.54%

News Corp Class A (NWSA) $29.67 4.58%

News Corp Class B (NWS) $33.87 4.22%

Occidental Petroleum Corp. (OXY) $56.04 4.14%

LyondellBasell Industries (LYB) $61.44 4.08%

Allstate Corp (The) (ALL) $275.11 3.98%

Ralph Lauren Corp (RL) $395.83 3.95%

S&P 500 - Fallers

TripAdvisor Inc. (TRIP) $10.42 -27.54%

Western Digital Corp. (WDC) $451.52 -17.82%

Ipg Photonics Corp. (IPGP) $86.70 -9.69%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

DENTSPLY Sirona Inc. (XRAY) $13.17 -7.71%

Macerich Co (MAC) $23.49 -7.48%

Kraft Heinz Co. (KHC) $24.96 -7.21%

Microchip Technology Inc. (MCHP) $74.36 -6.68%

Fortinet Inc. (FTNT) $160.11 -6.60%

Capri Holdings Limited (CPRI) $15.00 -6.37%