The stock market was mixed Friday morning, as the Dow Jones Industrial Average and S&P 500 made new highs, but a sell-off in Snap (SNAP) sparked a sell-off in social media and internet stocks.
The S&P 500, which made a record high Thursday, added 0.1%. Friday’s stock market volume was mixed, with Nasdaq trading up sharply and NYSE volume lower compared with the same time on Thursday.
The tech-heavy Nasdaq composite fell 0.5% mainly due to weakness in internet shares. Communications Services Select Sector SPDR (XLC), which is largely an internet index, fell nearly 2% — easily the worst performance among the S&P sector ETFs.
Snap’s Damage Hits Other Parts Of Stock Market
Snap plummeted 23% after the parent of Snapchat beat third-quarter earnings estimates late Thursday but missed sales views. It also gave a fourth-quarter revenue outlook short of expectations. Apple’s new privacy rules hurt Snap’s performance. Also, labor shortages and supply-chain difficulties hindered some advertisers, Snap executives said.
Snap shares gapped down to the lowest since July 19. A breakout past 80.95 had already failed. The sell-off spilled over to other social media stocks.
Facebook (FB) slid 5% in heavy volume and is near another touch of the 200-day moving average. It is on pace for the largest single-day loss in nearly a year and is the third-worst performer on the S&P 500 today, according to Dow Jones Market Data.
U.S. Stock Market Today Overview
Last Update: 10:14 AM ET 10/22/2021
Alphabet (GOOGL) fell nearly 3%. On Thursday, the company’s Google unit cut fees in half for mobile app developers. While the move was expected, online dating firms Match Group (MTCH) and Bumble (BMBL) surged on the news Thursday.
Dow Leads Stock Market Friday
The Dow Jones Industrial Average climbed 0.3%.
American Express (AXP) climbed more than 4%, solidifying a move above the 178.90 buy point of a cup with handle base. The credit card company beat profit expectations early Friday, citing a recovery in the restaurant industry.
The energy sector remains strong this month, and a trio of oilfield services companies were mixed after announcing quarterly results this week.
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
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