U.S. stock futures wilt after Snap warning, continued bond yield rise

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U.S. stock futures fell on Friday, with a warning from social-media service Snap setting a negative tone as bond yields continued to rise.

What’s happening
  • Futures on the Dow Jones Industrial Average
    YM00,
    -0.43%

    fell 130 points, or 0.4%, to 30223.

  • Futures on the S&P 500
    ES00,
    -0.61%

    dropped 23.5 points, or 0.6%, to 3652.

  • Futures on the Nasdaq 100
    NQ00,
    -0.94%

    decreased 108.75 points, or 1%, to 10982.

On Thursday, the Dow Jones Industrial Average
DJIA,
-0.30%

fell 90 points, or 0.3%, to 30334, the S&P 500
SPX,
-0.80%

declined 29 points, or 0.8%, to 3666, and the Nasdaq Composite
COMP,
-0.61%

dropped 66 points, or 0.61%, to 10615.

What’s driving markets

The social media service Snap
SNAP,
-0.64%

said it’s expecting flat revenue growth for the fourth quarter, even though the quarter so far has seen 9% growth. Snap shares skidded 26% in premarket trade. A report that the U.S. could subject Elon Musk’s pending acquisition for Twitter
TWTR,
+1.18%

to a national security review sent Twitter shares down 9%.

The first full week of earnings has seen companies report profits falling, though not substantially. The 88 members of the S&P 500 so far have reported a 2.6% decline in earnings, but three-quarters of those companies have topped analyst expectations, according to data from Refinitiv.

The yield on the benchmark 10-year Treasury
TMUBMUSD10Y,
4.283%

continued to climb, rising 5 basis points to 4.28%. The yield had climbed 23 basis points the previous two days on concerns about how high the Federal Reserve will have to take interest rates to calm inflation.

The U.K. political situation also will be in the spotlight. Ahead of next week’s Conservative Party election, there’s the possibility that former Prime Minister Boris Johnson may return, though betting markets put former Chancellor Rishi Sunak as the favorite.

The U.K. also recorded a sharper-than-forecast 1.4% drop in retail sales in September, which in part was weighed by the state funeral for Queen Elizabeth II.



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