Stocks edge lower, major indexes still head for weekly gains
Major stock indexes on Wall Street are mostly lower in afternoon trading Friday as losses for several large technology and communications companies weigh on the market
Stock indexes on Wall Street were mostly lower in afternoon trading Friday as losses for several large technology and communications companies weighed on the broader market.
The S&P 500 index slipped less than 0.1% as of 2:51 p.m. Eastern. The benchmark index notched a record high a day prior. The Dow Jones Industrial Average rose 121 points, or 0.3%, to 35,721 and is hovering around the record high set on Aug. 16. The Nasdaq fell 0.8%.
Every major index is on track for a third weekly gain in a row, despite choppiness in the broader market. Investors have been focusing on the latest round of corporate earnings over the last two weeks and the mostly solid results have helped stocks generally grind higher.
More stocks were rising than falling within the benchmark S&P 500 index, but the outsized weight of some large companies held it down. Chipmaker Intel slumped 11.8% for the biggest decline in the index after reporting disappointing revenue.
Snapchat’s parent company, Snap, plunged 25.1% after reporting weak revenue and disclosing that its ad sales are being hurt by a privacy crackdown that rolled out on Apple’s iPhones earlier this year. The news weighed down several other social media companies. Facebook fell 5.9% and Twitter fell 4.1%. Google’s parent, Alphabet, fell 3.1%.
Banks and other financial companies made solid gains. American Express jumped 6.4% after reporting solid third-quarter financial results. The company noted an increase in consumer spending and travel. Bank of America rose 1.3%.
Solid earnings helped several other companies gain ground. Hot Wheels and Barbie maker Mattel initially rose after reporting solid financial results, but shed its gains and was down 0.1% in afternoon trading.
Bond yields edged lower. The yield on the 10-year Treasury fell to 1.65% from 1.67%.
The company planning to make President Donald Trump’s new media venture a publicly traded company soared for a second straight day. Digital World Acquisition nearly tripled in the first minute of trading, jumping 189.9% to $131.90 before getting temporarily halted and then trimmed to a 106% gain.
It more than quadrupled the day before, surging to $45.50 from $9.96, after it said it would merge with Trump Media & Technology Group, which aims to challenge Facebook, Twitter and even Disney’s streaming video service. Experts are split on the company’s prospects, but some investors are betting on it to be popular.
That’s despite the deal’s announcement being unusual in how few details it offered for investors.
Markets in Asia were mixed. State media in China said China Evergrande Group made an overdue bond payment on Friday. The property developer’s struggle to reduce its 2 trillion yuan ($310 billion) of debt to comply with tighter official curbs on borrowing has prompted fears a default might trigger a financial crisis.
European markets were higher.
