STOCK MARKET NEWS: Stocks close lower, Snap sinks, Twitter blames Musk

After Republican lawmakers signaled U.S. Securities and Exchange Commission Chairman Gary Gensler’s policies are exceeding his authority, one former SEC chair expressed the same concern about unconstitutional rules and policies.

"I think there's a serious disconnect between some of the things that are now taking place at the commission and what the authority of the agency is," Harvey Pitt told FOX Business’ Maria Bartiromo Friday. "The agency has a very broad mandate, but it doesn't have a mandate, for example, to compel companies to report certain carbon green gas emissions levels. And yet the SEC is attempting to do that."

U.S. Securities and Exchange Commission Chairman Gary Gensler (Photographer: Andrew Harrer/Bloomberg via Getty Images)

Gensler is facing scrutiny from Republicans on the Senate Banking Committee for including newly proposed rules that force progressive edicts on the environment and other social issues near and dear to Democrats, as well as expansive crypto regulation.

"The courts are likely to undo much of what the SEC is proposing to do," Pitt explained. "And when that happens, the agency can lose its credibility."

Republicans told FOX Business they plan to oust Gensler and his leadership if they gain control of Congress in the midterms.

Twitter posted $1.18 billion in total revenue for the second quarter, missing estimates of $1.32 billion. In addition to Musk's deal, it also cited "advertising industry headwinds associated with the macroenvironment."

The social media giant reported $33 million in costs during the quarter related to the $44 billion acquisition. 

In response to the news that Musk's deal was being partially blamed, the billionaire tweeted "I'm rubber, they're glue."

NYSE Floor Traders (Reuters)

U.S. equity futures traded lower Friday morning, following a three-day rally. The major futures indexes suggest a decline of 0.3% when the final trading day of the week gets underway on Wall Street.

U.S. 10-year Treasury yields fell to their lowest level in over two weeks on Friday as worries mount about economic growth. The 10-year Treasury yield fell to as low as 2.82%.

Oil prices bounced between gains and losses Friday morning, following previous declines on supply tightness and geopolitical tensions.

U.S. West Texas Intermediate crude traded around $96.00 a barrel. Brent crude futures traded around $104.00 a barrel.

Snap shares hares are plunging 28% in premarket trading after the company posted its weakest-ever quarterly sales growth as a public company. The parent company of Snapchat reported revenue of $1.11 billion and posted a $422 million net loss for the second quarter.

Other social media-related shares are also down. Meta Platforms down 4%, Alphabet off 2% and Twitter down 2%.

Hot Wheels helped Mattel's sales rise 20%, topping expectations. Excluding items, the company earned 18 cents per share, beating estimates of 6 cents. However, surging costs are cutting into margins. Shares fell more than 1% after-hours.

Wrapping up the week will be results from American Express, Twitter, Cleveland-Cliffs, HCA Healthcare, NextEra Energy, Regions Financial, Roper Technologies, Schlumberger and Verizon before the market open.

On Wall Street, the S&P 500 climbed 1% to 3,998.95 on Thursday, returning to its highest level in six weeks. The Dow rose 0.5% to 32,036.90 and the Nasdaq rose 1.4% to 12,059.61.

Snapchat logo illustration (Getty)

Snap shares are plunging 28% in premarket trading after the company posted its weakest-ever quarterly sales growth as a public company. 

The parent company of Snapchat reported revenue of $1.11 billion, narrowly missing scaled-back Wall Street expectations and said sales in the current period are roughly flat from a year ago. Snap posted a $422 million net loss for the second quarter.

Other social media-related shares are also down. Meta Platforms down 4%, Alphabet off 2% and Twitter down 2%.

For Sale sign and housing development (FBN)

Skyrocketing housing costs are likely to continue fueling the inflation spike this year, worsening a political crisis for President Biden and creating new challenges for the Federal Reserve as it tries to cool prices without tipping the economy into a recession.

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Gas Prices (AAA)

The average price of a gallon of regular gasoline slipped on Friday morning to $4.413, according to AAA. The price on Thursday was at $4.44. Gas has been on the decline since hitting a high of $5.016 on June 14.  Diesel slipped as well to $5.455 down from $5.476.

Oil wells at dawn (iStock)

Oil prices traded between gains and losses Friday morning, following previous declines on supply tightness and geopolitical tensions.

U.S. West Texas Intermediate (WTI) crude traded around $96.00 a barrel.

Brent crude futures traded around $103.00 a barrel.

WTI has been hit over the past two sessions after data showed that U.S. gasoline demand had dropped nearly 8% from a year earlier. In contrast, signs of strong demand in Asia propped up the Brent benchmark, putting it on course for its first weekly gain in six weeks.

Cryptocurrency prices for Bitcoin, Ethereum and Dogecoin were mixed Friday morning.

Bitcoin was trading at around $23,000 after two-days of declines. In the past week, Bitcoin has gained more than 12%. The cryptocurrency has gained more than 23% in July.

Ethereum was trading around $1,500, gaining more than 32% in the past week. Dogecoin was gaining 0.5% at 7 cents, gaining more than 11% in the past week.