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Stock market today: Dow declines, Verizon slips

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Investors continue to watch US corporate earnings.

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The stock market was mostly down on Friday as bond yields continued to rise.

Shortly after opening, the


Dow Jones Industrial Average

down 415 points, or 1.2%, while


S&P500

fell 1%. the


Nasdaq Compound

fell 0.5%.

Equities are still in the grip of the Treasury market. The two-year Treasury yield rose to 2.73% on Friday from a closing level of 2.69% on Thursday, which would be a new pandemic-era closing high if it ended the day at that level.

The move comes a day after Federal Reserve Chairman Jerome Powell reiterated that the Fed could raise interest rates by half a point in May, more than the standard quarter-point increase. as the central bank attempts to reduce runaway inflation as quickly as possible, something that would also dampen economic growth. The central bank presented a projection of 10 more potential rate hikes from here.

“The Treasury market continues to play ‘catch up’ with expected rate hikes,” wrote Tom Essaye, founder of Sevens Report Research.

Meanwhile, earnings reports continue to pour in and they are mostly exceeding expectations. As of Thursday, about three-quarters of S&P 500 companies beat forecasts, with overall earnings per share about 8% above estimates, according to Credit Suisse. That has helped some stocks rise, but markets fear future earnings will falter if the economy follows suit in light of higher interest rates.

“It’s not the economy we’re worried about now, it’s the economy over the next few quarters, and nothing in the earnings results so far has alleviated that concern,” Essaye wrote.

Overseas, the pan-European


Stoxx 600

fell by 1.5%, and that of Tokyo


Nikki 225

fell 1.6%.

Here are six stocks moving on Friday:


SAP

(ticker: SAP) fell 0.9% after Europe’s largest software company revealed that the Russian-Ukrainian war would weigh heavily on profits in 2022, dampening otherwise upbeat first-quarter results, which included strong revenue growth.


Anheuser-Busch InBev

(BUD) fell 1.8% after the drinks giant announced it would sell its stake in its Russian joint venture as part of a deal, which could lead to a loss of $1.1 billion for the largest brewer in the world.


American Express

(AXP) stock fell 1.1% after the release a gain of $2.73 per share, beating estimates of $2.40 per share, on revenue of $11.7 billion, beating expectations of $11.6 billion.


Kimberly Clark

(KMB) jumped 9.1% after the company reported earnings of $1.35 per share, beating estimates of $1.23 per share, on sales of $5.1 billion, over above expectations of $4.9 billion.


Verizon Communications

(VZ) fell 5.1% after the company reported earnings of $1.35 per share, in line with estimates, on revenue of $33.6 billion, beating expectations of 33, $5 billion.


Boston Beer Co.

(SAM) fell 2.1% after the company reported a loss of 16 cents per share, missing estimates for earnings of $2.04 per share, on sales of $430 million, which fell short expectations of $445 million.

Write to Jack Denton at jack.denton@dowjones.com and Jacob Sonenshine at jacob.sonenshine@barrons.com