[New York Stock Market] SanDisk Earnings Disappoint... Mixed Performance as Hormuz Negotiations Draw Attention

International Oil Prices Rise Slightly as Markets Cautiously React to Negotiation Outcomes
Partial Release of SpaceX Lock-Up Shares

While negotiations are underway regarding the reopening of the Strait of Hormuz, weak corporate earnings have persisted,resulting in mixed movements for the three major U.S. stock indices on August 6 (local time).

As of 9:55 a.m. at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average (Dow Jones) was down 42.09 points (0.08%) from the previous session, at 54,307.03. The large-cap-focused S&P 500 index was up 11.40 points (0.14%) at 7,734.95, while the tech-centric Nasdaq index was up 45.79 points (0.17%) at 26,409.23.

The New York Stock Exchange. New York, USA – Photo by Yoonju Hwang

On this day, investor sentiment was divided due to weak corporate earnings. SanDisk reported a record revenue of $8.97 billion in its fiscal 2026 fourth quarter. However, as this fell short of market expectations, the stock is currently down by more than 10%.

Mobile advertising platform AppLovin is down more than 18% following disappointing quarterly results. Western Digital, an American HDD manufacturer, posted fiscal 2026 fourth-quarter results that exceeded estimates, but the company's first-quarter outlook fell short of expectations, leading to a 15% decline.

Restaurant Brands International, the parent company of Burger King, posted Thursday earnings per share (EPS) of $1.07, beating expectations, and revenue in line with forecasts at $2.52 billion. While Burger King itself is enjoying strong business, with a same-store sales growth of 8.5%, RBI's other brands, including Tim Hortons and Popeyes, did not perform as well. The stock is currently down slightly by 0.42%.

On this day, the first lock-up shares of SpaceX are being released on the Nasdaq. The volume is about 20% (approximately 900 million shares), which CNBC reports could put downward pressure on the stock price.

Expectations for the reopening of the Strait of Hormuz are also rising, following reports the previous day that Iran and Oman have agreed on coordinates for navigation through the strait. According to an Iranian government official, under the provisional agreement, ships passing through the Strait of Hormuz will not be subject to transit fees.

International oil prices are cautiously reflecting the outcome of the Iran-Oman talks. On the New York Mercantile Exchange, September delivery of West Texas Intermediate (WTI) crude oil is up 1.28% from the previous day, at $76.16 per barrel. On the ICE Futures Exchange, Brent crude for October delivery is up 1.80%, at $80.86 per barrel.

Jim Reid, a strategist at Deutsche Bank, commented, "Throughout this conflict, the market has seen plenty of optimistic signals and now, as the details become clearer, the focus is shifting from whether a deal will be reached to the content of the final agreement." He added, "In particular, unresolved issues remain, such as whether Iran will be allowed to charge transit fees to ships utilizing the strait."

Meanwhile, the U.S. Department of Labor announced on August 6 (local time) that initial jobless claims for the week ending August 1 totaled 199,000, up 1,000 from the previous week. This figure is lower than the projection of 204,000 by experts surveyed by Dow Jones.

Weekly initial jobless claims have remained below 200,000 for three consecutive weeks, following 189,000 claims for the week of July 12–18—the lowest since 1969—thus maintaining a low level.

The number of continued jobless claims—those who applied for unemployment benefits for more than two weeks—was 1,801,000 for the week of July 19–25, up 24,000 from the previous week.

This content was produced with the assistance of AI translation services.