(Updates with market moves at the end of the day, and other changes, if any.)
The Dow Jones Industrial Average retreated Thursday from record highs as oil prices rose following reports that US and Israeli ships won't be allowed to transit the Strait of Hormuz under a draft plan.
The Dow shed 0.9% to 53,885.10, after notching three consecutive record closing highs. The S&P 500 fell 0.2% to 7,709.96, while the Nasdaq Composite edged down 0.1% to 26,348.35. Most sectors were in the red, led by industrials, real estate and materials, while energy saw the biggest gain.
West Texas Intermediate crude oil was up 3.1% at $77.54 a barrel in Thursday late-afternoon trade, while Brent rose 4.1% to $82.74.
Iran and Oman are reportedly close to finalizing a framework regarding the Strait of Hormuz. But US and Israeli ships would be blocked from moving through the strategic waterway, Iranian state news outlet Fars reported Thursday, according to CNBC.
Asked about the Fars report, CNBC quoted an unnamed US official as saying that "any temporary routes will be without any impediments -- meaning no approvals or permissions and no tolls or charges."
The proposed Iran-Oman agreement would not automatically reopen the strait, Iranian Deputy Foreign Minister Kazem Gharibabadi told the state-run Islamic Republic News Agency, according to CNN.
"The real hinge point now becomes the trajectory of US-Iran discussions, because meaningful progress is essential before disrupted energy flows can realistically resume," ING Bank said in a report Thursday.
Treasury yields were higher, with the two-year rate rising 6.6 basis points to 4.25% and the 10-year rate up 5.1 basis points at 4.67%.
Honeywell Aerospace's (HONA) fiscal second-quarter earnings fell year-over-year as revenue missed estimates. The stock plunged 23%, the worst performer on the S&P 500.
AppLovin (APP) shares tumbled nearly 20%, the second-biggest decline on the benchmark equity index, after the mobile technology company reported a second-quarter revenue miss late Wednesday.
Datadog (DDOG) followed AppLovin on the S&P 500, down 19%, even after the software maker reported a second-quarter beat and raised its full-year outlook.
In economic news, US job cuts hit a two-year low in July even as downsizing in the tech sector continued, outplacement firm Challenger Gray & Christmas said. Separately, government data on Thursday showed that initial jobless claims rose less than expected for the week through Aug. 1.
Data from the Bureau of Labor Statistics are likely to show Friday that the US economy added 80,000 nonfarm jobs last month, compared with a 57,000 increase reported for June, according to a Bloomberg-compiled survey. The unemployment rate is seen unchanged at 4.2%.
Spot gold fell 0.2% to $4,239.52 per troy ounce, while silver declined 0.9% to $61.76 per ounce.
