U.S. Stocks Waver After Snap Sales Warning as Bond Yields Soar

By Liz Moyer

Investing.com -- U.S. stocks erased early losses and turned higher on Friday, with weakness in tech stocks as Treasury yields soared.

At 10:32 ET (14:32 GMT), the Dow Jones Industrial Average was up 227 points, or 0.7%, while the S&P 500 was up 0.5% and the NASDAQ Composite was up 0.2%.

Social media platform Snap Inc (NYSE:SNAP) tumbled 31% after forecasting flat revenue for the fourth quarter as advertising dries up. That announcement on Thursday already sent its shares 25% lower in after-hours trading.

Snap’s third quarter, with the slowest quarterly revenue growth in five years, was an ominous sign for other companies that rely on digital advertising, including Google parent Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) and Meta Platforms Inc (NASDAQ:META). Shares of Alphabet fell 0.6% while shares of Meta fell 2.8%.

The yield on the benchmark 10-year Treasury rose to a 15-year high at 4.3%. The Federal Reserve has been aggressively raising interest rates in a quest to tame inflation, and is widely expected to raise them again in November by another 0.75 percentage point.

In other earnings, Verizon Communications Inc (NYSE:VZ) stock fell 5.7% after the telecommunications giant said profit fell 23%, falling short of expectations for wireless subscription gains.

Oil rose. Crude Oil WTI Futures was flat, to $84.44 a barrel, and Brent Oil Futures crude was up 0.2% to $92.52 a barrel. Gold Futures rose 0.2% to $1639.