US stocks drop with Nasdaq down 2% as Snap earnings disaster sends shockwave through tech sector
- Nasdaq led
stock marketdeclines on Friday, falling nearly 2% after Snap reported earnings.
- Snap's disastrous results sent a shockwave through the tech sector as investors worry about the state of online advertising.
- The decline in tech stocks on Friday came even as the 10-year US Treasury yield fell considerably.
US stocks fell on Friday, with the Nasdaq 100 declining nearly 2% after Snap's disastrous second-quarter results sent a shockwave through the tech sector.
Snap plunged 39% in Friday trades after the company missed analysts' revenue estimates and reported a wider loss year-over-year. The lack of visibility in Snap's business due to a continued slowdown in online advertising spend led management to say it wouldn't provide third-quarter revenue guidance.
The poor results from Snap dragged down other online advertising tech stocks like Alphabet and Meta Platforms, which both fell more than 6%. Both tech giants report earnings next week, and investors will be closely watching for any clues if advertisers are pulling back spending in anticipation of an economic recession.
Other stocks were down due to disappointing earnings on Friday included Verizon and Intuitive Surgical, among others.
Here's where US indexes stood at the 4:00 p.m. ET close on Friday:
- S&P 500: 3,961.70, down 0.93%
- Dow Jones Industrial Average: 31,899.42, down 0.43% (137.48 points)
- Nasdaq Composite: 11,834.11, down 1.87%
Not all results have been bad so far this earnings season, and investors are sifting through the data to get a sense of the current state of the economy. Of the 17% of S&P 500 companies that have reported earnings, 80% have beat profit estimates by a median of 7%, while 76% beat revenue estimates by a median of 2%, according to Fundstrat.
Meanwhile, commodity prices continue to fall, which is a benefit for consumers who have been dealing with surging inflation in recent months. Wheat prices fell to levels not seen since the start of Russia's war against Ukraine after the two countries signed a deal to unblock shipments of the grain.
Russian oil is finding its way to Asia on tankers that used to carry sanctioned Iranian crude, as "dark"
West Texas Intermediate crude oil fell as much as much as 1.63% to $94.78 per barrel. Brent crude, oil's international benchmark, fell as much as 0.71% to $103.12.
Bitcoin jumped 0.50% to $23,036. Ether prices rose 0.55% to $1,570.
Gold jumped as much as 0.65% to $1,723.70 per ounce. The yield on the 10-year Treasury fell 10 basis points to 2.78%.
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