Stocks eased on Friday as investors assessed more corporate earnings reports and the outlook for Federal Reserve rate hikes.
The Dow Jones Industrial Average fell 34 points, or 0.1%. The S&P 500 slipped 0.2%. The Nasdaq Composite was off by 0.2%.
Treasury yields fell from their highs and futures bounced off their lows after areport from the Wall Street Journalthat some Fed officials are concerned about overtightening with large rate hikes.
Earnings reports seemed to limit gains from futures. Dow components American Express and Verizon fell more than 4% in premarket trading after their quarterly report.
In tech, social media company Snap reported a quarterly revenue of $1.13 billion, below expectations. That revenuerepresents year-over-year growth of just 6%. Average revenue per user, a key metric for the company, fell 11% to $3.11.
“The mindset is quite gloomy w/stocks for sale pretty much everywhere. The culprit behind the negativity is earnings w/a slew of disappointments around the world,” wrote Adam Crisafulli of Vital Knowledge.
Stocks are on a two-day losing streak, with the Dow shedding 90.22 points, or 0.3%, on Thursday. The S&P 500 and Nasdaq Composite were down 0.8% and and 0.6%, respectively.
It was a day that started on better footing for the Dow, which was up nearly 400 points at session highs, but rising Treasury yields threw cold water on stocks. The 10-year Treasury yield is trading at levels not seen since 2008. On Friday, it traded around 4.29%.
The major averages are still on track for a winning week, up more than 2% through Thursday.
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