Stock Market Today: Dow Slips, Snap Plunges After Earnings


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Big Tech earnings next week are catching Wall Street’s attention and could send the stock market swinging.

Ed Jones/AFP via Getty Images

The stock market was down on Friday, with tech stocks hardest hit after

it is

earnings disaster.

In the afternoon discussions, the

Dow Jones Industrial Average

fell 285 points, or 0.9%. The


fell by 1.5%, while

Nasdaq Compound

fell 2.3%.


(ticker: SNAP) stock fell 38% after the social media company missed sales and earnings expectations and said sales were flat year-over-year recently. Analysts were expecting growth of nearly 20% for the current quarter. The company said on its earnings call that as macro issues like rising interest rates and high inflation dampen consumer demand, brands are cutting marketing spend.

“SNAP’s weak third-quarter guidance confirmed our fears of worsening ad spend,” wrote RBC analyst Brad Erickson. “Unfortunately for SNAP and the digital advertising industry, we believe there are signs of further ad spend reductions to come.”

This does not bode well for other advertising companies.


(GOOGL) fell 6.1%, while


(META) fell 7.4%.

The combined market capitalization of the companies is about 10% of the overall tech-heavy Nasdaq market capitalization, which dragged the index down.


(TWTR) is in the same boat, although the stock has recouped earlier losses. The company missed expectations for sales and earnings, though that’s partly because it missed expectations for the total number of monetizable daily active users. The stock was initially down, then up 0.5%.

Even non-advertising social media platforms were seeing their stocks affected, since the consumer is the problem.


(PINS) fell 13%.

The Nasdaq, meanwhile, is having a rare day of underperformance. The index had gained 13% from its mid-June low for the year to Friday.

On Friday, weaker than expected economic data indicated that the Federal Reserve may be more likely to slow the pace of interest rate hikes. The S&P Global US Services Purchasing Managers Index, a measure of economic activity in the services sector, fell to 47 in July. That missed expectations of 53, which would have been essentially unchanged from the June result.

Now, the fed funds futures market puts a 16% chance that the Fed will raise the fed funds rate by a full percentage point this month, rather than three-quarters of a point. That’s down from a 27% chance seen on Thursday. Consistent with this, bond yields across the board are falling. The 2-year and 10-year Treasury yields are down to 2.97% and 2.78%, respectively.

“The latest economic data releases confirmed the likely case of (no more than) a 75 basis point Fed rate hike next week,” wrote Christopher Harvey, equity strategist at Wells Fargo.

That’s good news for the stock market, but right now Wall Street is taking a moment to reassess earnings forecasts in light of Snap’s dismal report.

Here are some stocks moving on Friday:

Seagate Technology

(STX) fell 9.1% as the data storage company blamed weaker-than-expected quarterly profits and a shaky sales outlook on a tough economic environment. Seagate reported revenue of $2.6 billion, missing Wall Street estimates of $2.78 billion, and said it expects sales of around $2.5 billion. dollars in the third quarter, which is well below the $3.03 billion that Wall Street had forecast.

Macro cross-reading weighed on shares of memory technology peers

Micron Technology

(MU), which fell 3.8%, and

western digital

(WDC), which fell 6.3%.

Boston Beer Co.

(SAM) rose 2.8%, reversing declines, after the company cut its full-year earnings forecast to $8.50 per share at the midpoint from a previous midpoint of $13.50 .

SVB Financial

(SIVB) fell 17% after the company reported a 38% year-over-year drop in earnings per share and said it had set aside $196 million for credit losses as it prepares for a deterioration in the macroeconomic landscape.

Intuitive surgery

(ISRG) fell 6.4% after the company missed its sales and earnings expectations.

Write to Jack Denton at and Jacob Sonenshine at


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