Stocks gave back early gains and closed slightly lower Friday as the recent year-end market rally took a breather.
yields continued to rise as the yield on the 10-year Treasury note
closed above the 3% mark for the first time since June 2011.
The Dow Jones industrial average ended its six-day winning streak as it fell 1.47 points to 16,478.41. The
Standard & Poor's 500 index dropped 0.62 to 1,841.40 and the Nasdaq
composite index fell 10.59 points, or 0.2%, to 4,156.59.
session was marked by light trading as many investors were out on
vacation. Only 2 billion shares changed hands on the New York Stock
Exchange on Friday, about 40% below the recent average.
fell $9.56, or 13%, to $63.75. Twitter has soared in recent days,
prompting one Wall Street analyst to downgrade the company's stock to
the equivalent of "sell," saying the rally was overdone. Even with
Friday's sell-off, the social media company's stock is still up 53% this
On Thursday, the Dow ended up 48.68 points,
0.3%, to 16,227.76 -- a record high. The S&P 500 closed up 9.09
points, 0.5%, to 1,818.69 -- also an all-time high. And the tech-laden
Nasdaq finished up 46.61 points, 1.2%, at 4,104.74. It was the Nasdaq's
best close since Sept. 1, 2000.
THURSDAY: Dow, S&P 500 finish at record highs
have enjoyed one of their best year's in recent memory and look to
finish 2013 on a strong note as investors have been encouraged by
several recent indicators that the economy is on good footing.
Dow and S&P 500 are up 2.4% and 2% respectively so far in December,
with only two trading days left in the year. For 2013, the S&P 500
is up roughly 29%, its best year since 1997, and the Dow is up 25.8%,
its best year since 1996.
No economic data or corporate earnings were released on Friday.
10-year U.S. government bond, which briefly touched the key 3% level on
Thursday for the first time since September, continued to inch higher
Friday. In afternoon trading it was yielding 3.003%, which is its
highest yield since July 2011. The increase will translate into higher
interest rates on mortgages and other kinds of loans.
to be seen how financial markets will react to rising bond yields. The
general consensus is that markets will take the rate rise in stride if
it is gradual and orderly, rather than a sharp spike in a short span
that boosts fears that yields will skyrocket and hurt the housing
recovery and economic growth.
BONDS: 10-year Treasury hits key 3% level
Asia, Japan's Nikkei 225 rose 4.50 points, or less than 0.1%, to finish
at 16,178.94, Hong Kong's Hang Seng index climbed 63.69 points, or
0.3%, to close at 23,243.24 and Shanghai's composite index rose 28.15
points, or 1.4%, to close at 2,101.25.
Major European benchmarks
were up as they resumed trading following the Christmas break. Britain's
FTSE 100 was up 0.9% to 6,750.87 and Germany's DAX 30 index gained 1.1%
to 9,589.39. France's CAC 40 index rose 1.4% to 4,277.65.