U.S. stocks gave up gains in the final hour of trading to finish the regular trading session lower after President Trump commented on threats from North Korea. Earlier today, the Dow and S&P 500 both rose to record-highs on the heels of reports that showed domestic job openings jumped and small business optimism surprisingly improved. In equity news, upbeat earnings results from CBS, Michael Kors and Ralph Lauren initially buoyed sentiment. The U.S. dollar and gold advanced, while Treasuries and crude oil prices declined.

The Dow Jones Industrial Average (DJIA) declined 33 points (0.2%) to 22,085, the S&P 500 Index lost 6 points (0.2%) to 2,475, and the Nasdaq Composite decreased 13 points (0.2%) to 6,370. In moderate volume, 772 million shares were traded on the NYSE and 1.9 billion shares changed hands on the Nasdaq. WTI crude oil declined by $0.22 to $49.17 per barrel and wholesale gasoline was $0.01 lower at $1.62 per gallon. Elsewhere, the Bloomberg gold spot price was $2.92 higher at $1,257.69 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—traded 0.2% higher at 93.62. The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS), a measure of unmet demand for labor, jumped to a level of 6.16 million jobs available to be filled in June—a record high—from May’s upwardly revised 5.70 million level. The Bloomberg forecast called for an increase to 5.75 million. The hiring and separation rates remained at May’s levels of 3.7% from 3.6% respectively.

The National Federation of Independent Business (NFIB) Small Business Optimism Index for July rose to 105.2—the highest since February—from June’s unrevised 103.6 level, versus expectations of a dip to 103.5.

Treasuries were lower, with the yield on the 2-year note mostly flat at 1.36%, while the yield on the 10-year note added 1 basis point (bp) to 2.27% and the 30-year bond rate rose 2 bps to 2.85%.Tomorrow, the U.S. economic calendar will yield the weekly MBA mortgage applications report, which will be followed by a preliminary read on Q2 nonfarm productivity and unit labor costs with productivity forecasted to have improved 0.7% and costs estimated to have increased 1.1%. Rounding out the day, we’ll receive wholesale inventories for June, expected to have increased 0.6% m/m, matching the rise seen in May.

Schwab Center for Financial Research – Market Analysis Group

©2017 Charles Schwab & Co., Inc., Member SIPC. All rights reserved.

Schwab Center for Financial Research (“SCFR”) is a division of Charles Schwab & Co., Inc. The information contained herein is obtained from third-party sources and believed to be reliable, but its accuracy or completeness is not guaranteed. This report is for informational purposes only and is not a solicitation, or a recommendation that any particular investor should purchase or sell any particular security. The investment information mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinions are subject to change without notice in reaction to shifting market conditions.