U.S. stocks traded mixed Friday, with both the Dow and the S&P 500 hitting fresh record highs and offsetting a pullback in tech stocks linked to a warning on ad spending from social media group Snap, as well as another move higher in Treasury bond yields.
Global stocks are on pace for their third weekly advance, however, following last night's record high close for the S&P 500 -- 33 days after its last peak in early September -- a series of stronger-than-expected third quarter earnings reports and the lowest level of weekly jobless claims in nineteen months.
Reports of a a surprise $83.5 million coupon payment by indebted property group China Evergrande, just days ahead of a possible default, added to the session's positive tone, although investors are largely looking ahead to next week's busy earnings slate -- highlighted by updates from Apple (AAPL) - Get Apple Inc. (AAPL) Report, Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report, Facebook (FB) - Get Facebook, Inc. Class A Report Amazon (AMZN) - Get Amazon.com, Inc. Report and Google (GOOGL) - Get Alphabet Inc. Class A Report for broader market direction.
Snap's (SNAP) - Get Snap, Inc. Class A Report warning on the advertising market, linked to supply chain bottlenecks and shortages of goods that would clip marketing budgets, hit the tech sector hard, with big names such as Facebook (FB) - Get Facebook, Inc. Class A Report, Twitter (TWTR) - Get Twitter, Inc. Report and Alphabet, falling hard in early trading.
On Wall Street, the Dow Jones Industrial Average gained 90 points in the opening half hour of trading while the S&P 500 edged 0.5 points higher to a fresh all-time peak ahead of a panel appearance from Federal Reserve Chairman Jerome Powell at 11:00 am Eastern time.
The tech-focused Nasdaq Composite, meanwhile, fell 65 points, thanks in part to the Snap warning and another leg higher in benchmark 10-year Treasury note yields, which traded at 1.705% in overseas markets before easing to 1.653%.
Snap shares plunged plunged 23%, the most on record, after it forecast weaker-than-expected holiday sales and cautioned that supply chain disruptions would hit advertising spending in the social media sector over months ahead.
Tesla (TSLA) - Get Tesla Inc Report shares hit a fresh record high, and now has a $1 trillion valuation firmly in sight, as investors continue reward the clean-energy carmaker's record third quarter earnings.
Intel Corp. (INTC) - Get Intel Corporation (INTC) Report shares slumped 10.6% after the group reported weaker-than-expected third quarter sales and said profit margins would narrow as it ramps-up new technology chipmaking.
Honeywell International (HON) - Get Honeywell International Inc. (HON) Report posted softer-than-expected third quarter sales Friday, and lowered its full yea revenue outlook, citing "the persistent effects of the macro-challenged environment," with shares down 1.8% in late-morning trading.
Mattel (MAT) - Get Mattel, Inc. Report shares gained 2.6%, however, after the toy maker raised its 2021 sales forecast, saying higher prices resulting from ongoing supply disruptions aren’t deterring consumers from spending on the likes of Barbie, Hot Wheels and Star Wars-branded holiday gifts.
In other markets, oil prices climbed higher again Friday, setting up the 8th consecutive week of gains, as OPEC production cuts and China's power crisis continues to boost global crude demand.
The gains have lifted U.S. gas prices to $3.36 per gallon, the highest since 2014, and prompted comments from President Joe Biden during a CNN Town Hall event in Baltimore, Maryland, last night, during which he cautioned that, while they are likely to fall in 2022, he didn't see "anything that’s going to happen in the meantime that’s going to significantly reduce gas prices.”
WTI futures for December delivery were marked 46 cents lower on the session at $832.96 each while Brent contracts for the same month, the global pricing benchmark, rose 49 cents to $85.510 per barrel.