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Stocks Mostly Up Pre-Bell as Investors Weigh Potential Iran-Oman Hormuz Deal, Await More Earnings

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Stocks Mostly Up Pre-Bell as Investors Weigh Potential Iran-Oman Hormuz Deal, Await More Earnings

US equity markets were mostly pointing higher before the opening bell Thursday as investors assess prospects for a potential deal between Iran and Oman over the Strait of Hormuz and await the latest batch of corporate earnings.

The S&P 500 edged up 0.1% and the Dow Jones Industrial Average rose 0.2% in premarket activity, while the Nasdaq declined 0.3%. The Nasdaq and S&P 500 finished the previous trading session lower, while the Dow logged a fresh closing high for a third straight day.

Iranian Deputy Foreign Minister Kazem Gharibabadi reportedly said Thursday that an "understanding" between Iran and Oman regarding the Strait of Hormuz is close to being finalized, CNBC reported. Gharibabadi noted that the path of understanding is between the two countries and no negotiations have taken place with the US during this period.

Earlier in the week, President Donald Trump reportedly said an agreement to reopen the strait, the world's most important chokepoint for crude flows, was imminent.

West Texas Intermediate crude oil dipped 0.1% to $75.16 a barrel before the open, while Brent was slightly in the green at $79.47.

ConocoPhillips (COP), Parker Hannifin (PH), Datadog (DDOG), Warner Bros. Discovery (WBD), Becton Dickinson (BDX), Keurig Dr Pepper (KDP), Kenvue (KVUE), Restaurant Brands International (QSR), Fiserv (FISV), Ralph Lauren (RL), Fox (FOX, FOXA), US Foods (USFD) and Unity Software (U) report their latest financial results before the bell, among others.

Cloudflare (NET), Monster Beverage (MNST) and Airbnb (ABNB) are scheduled to post their earnings after the markets close.

Shares of Applovin (APP) dropped 16% pre-bell after the mobile technology provider's second-quarter revenue fell short of market estimates. DoorDash (DASH) gained 2.4% as the company delivered a second-quarter revenue beat amid order momentum. SanDisk (SNDK) fell 8.9% following its latest quarterly results.

Employers in the US announced 33,429 layoffs in July, down 27% from the month prior and 46% year over year, according to Challenger, Gray & Christmas' latest report. The weekly jobless claims bulletin is out at 8:30 am ET.

On Wednesday, ADP (ADP) data showed that private-sector employment in the US increased less than expected last month as gains were concentrated in services. The government's nonfarm payrolls report for July is due on Friday.

Treasury yields were trending higher in premarket action, with the two-year rate inclining 2.1 basis points to 4.2% and the 10-year rate adding 1 basis point to 4.63%.

Federal Reserve Bank of St. Louis President Alberto Musalem is slated to speak at 5:30 pm.

Gold traded up 0.5% at $4,328 per troy ounce, while bitcoin decreased 0.4% to $64,606.

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