US closed lower Friday as weak financials from Snap (SNAP) and Twitter (TWTR) dragged down communication services and technology stocks.
The Dow Jones Industrial Average declined 0.4% to 31,899.29, giving up earlier gains. The S&P 500 slid 1% to 3,961.63 and the Nasdaq Composite dropped 2% to 11,834.11. For the week, the major market indexes trimmed their gains after snapping a three-day rally, with the Dow ending 2% higher, the S&P 500 up 2.6%, and the Nasdaq rising 3.3%.
Utilities led the gainers while communication services ended 4.3% lower and technology down 1.4%.
The US 10-year yield slumped 15 basis points to 2.76%, with retreating rates across the term structure from three-month to 30-year securities.
West Texas Intermediate futures fell 1.8% to $94.64 a barrel.
Social media company stocks suffered Friday after Snap and Twitter swung to second-quarter adjusted losses. Snap and Pinterest (PINS) stocks closed 39% and 14% lower, respectively, while Meta Platforms (META) and Alphabet (GOOG) shares were down roughly 7.6% and 5.8%, respectively.
Twitter stock managed to end the session almost 1% higher, reversing a more than 2% morning decline, after the social media company reported Friday a surprise non-GAAP second-quarter net loss of $0.08 per share, reversing a $0.20 per share adjusted profit During the year-ago period and missing the Capital IQ consensus expecting it to earn $0.14 per share, excluding one-time items. Revenue fell 0.8% year-over-year to $1.18 billion, trailing the $1.34 billion analyst mean. The social media website said advertising headwinds and uncertainty surrounding a proposed buyout by Tesla (TSLA) Chief Executive Elon Musk hurt revenues.
Snap posted a second-quarter adjusted loss late Thursday of $0.02 per diluted share, swinging from adjusted per-share earnings of $0.10 a year earlier.
In other economic news, state-level from the Bureau of Labor Statistics showed that the unemployment rate fell in 10 states in June, rose in two states, and held steady elsewhere. The largest rate decline was in Missouri, while Minnesota has the lowest jobless rate in the US at 1.8%, followed by Nebraska at 1.9%. The District of Columbia posted the highest unemployment rate in the US at 5.5%. The national unemployment rate held steady at 3.6% in June.
The flash manufacturing reading from S&P Global fell to a 2-year low of 52.3 in July from 52.7 in June after regional data from the New York, and Philadelphia Federal Reserve banks were mixed.
In other corporate earnings news, HCA Healthcare (HCA) reported second-quarter earnings and sales that beat the market consensus. Its shares surged 12%, the top performer on the S&P 500.
Verizon Communications (VZ) slashed its full-year earnings outlook as customers pulled back on spending, while the firm posted a lower second-quarter profit that missed expectations. Shares slumped 6.7%, the worst performer on the Dow.
Gold was up 0.5% to $1,739.90 per troy ounce, while silver was down 1.3% to $18.48 per ounce.