US stocks edge lower as oil prices rise and more earnings reports roll
in
[August 07, 2026] By
DAMIAN J. TROISE
NEW YORK (AP) — Stocks edged further away from their recent records on
Thursday as Wall Street faced pressure from rising oil prices and mixed
company earnings.
Wall Street opened the week soaring higher and notching records, but has
calmed over the last two days. Markets are dealing with uncertainties
over the ongoing U.S. war with Iran and its impact on inflation.
Companies from a variety of sectors reported their latest financial
results, adding to an already busy round of corporate earnings.
The S&P 500 fell 13.59 points, or 0.2%, to 7,709.96. It pulled further
away from its record set on Tuesday, though the index is still solidly
on track to notch weekly gains.
The Dow Jones Industrial Average fell 464.02 points, or 0.9%, to
53,885.10. The Nasdaq composite fell 15.09 points, or 0.1%, to
26,348.35.
Both the Dow and Nasdaq are also heading into Friday on track for solid
weekly gains.
“August is off to an extremely strong start, but there is still plenty
of August left to go, and August is typically a volatile month for
stocks,” said Clark Bellin, president and chief investment officer at
Bellwether Wealth, in a research note.
Warner Bros. Discovery rose 1.7% after reporting earnings that came in
ahead of what investors were expecting. Molson Coors rose 1.3% after
also reporting encouraging financial results.
On the losing end, Honeywell Aerospace fell 23.2% after turning in
results that fell well short of forecasts. AppLovin slumped 19.7% after
the digital ad company reported mixed financial results for its most
recent quarter.
Strong overall profits from companies has helped allay concerns on Wall
Street about the market being overpriced. Roughly 85% of companies in
the S&P 500 have reported their results and overall earnings growth for
the period is shaping up to be the strongest since 2021.
Outside of earnings, SpaceX rose 6.1%. More than 911 million SpaceX
shares held by early investors and employees became eligible for sale on
Thursday as a lockup period for the stock expired. That is more than
double the shares that were initially offered to the public for sale
during the initial public offering for Elon Musk’s company. SpaceX
jumped as high as $225 a share following its market debut in June, but
has since slumped below its initial $135 offering price. The stock is
currently trading around $115.
Oil prices gained ground as uncertainty remains over the U.S. war with
Iran that has stifled the global flow of oil. The price of Brent crude,
the international standard, rose 3.8% to $82.49.
[to top of second column] |
Trader Fred Demarco, right, and Specialist Patrick King, left, work
on the floor of the New York Stock Exchange, Wednesday, Aug.. 5,
2026, in New York. (AP Photo/Yuki Iwamura)
 Iran has said that it is close to a
deal with Oman for reopening the Strait of Hormuz. President Donald
Trump has also previously said a deal is close, but the conflict has
had many starts and stops over the last five months.
A fifth of the world's traded oil and natural gas once passed
through the Strait of Hormuz. Oil prices surged as high as $113
during the conflict and higher prices have added more heat to
inflation by raising the price of gasoline and raising costs for
shipping.
The rate of inflation is stuck above 3% and higher costs have been
squeezing businesses and households, while threatening to crimp
broader economic growth. The U.S. economy expanded at a sluggish
1.5% pace during the second quarter. Households are still spending
and the jobs market remains resilient, but worries linger for both
areas of the economy.
Higher gas prices and added costs for shipping goods could prompt
households to shift more spending toward necessities. That could
hurt businesses focusing on nonessential items and services for many
people, such as travel and entertainment.
Employment remains strong, but growth has been easing. A weekly
report on Thursday showed that the number of Americans applying for
unemployment benefits rose last week, though layoffs remain in the
historically healthy range of the past few years. Employers pulled
back on hiring in June, adding only 57,000 jobs. The latest monthly
jobs report, for July, will be released on Friday.
Worries about inflation and the jobs market have prompted the
Federal Reserve to hold its benchmark interest rate steady. Stubborn
inflation, though, is nudging the central bank toward raising
interest rates before the end of the year in order to help tame
inflation. Raising rates could also slow economic growth while
weighing down prices for stocks and other investments.
Treasury yields rose in the bond market. The yield on the 10-year
Treasury rose to 4.67% from 4.63% late Wednesday.
European markets mostly rose.
___
Associated Press writers Elaine Kurtenbach and Hyung-jin Kim
contributed to this report.
All contents © copyright 2026 Associated Press. All rights reserved |
