Stocks Erase Early Gains; Dow, S&P Flat in Quiet Trading

wall street holiday trading
Richard Drew/AP

NEW YORK -- An early gain was gone by the early afternoon on Wall Street Friday as the market flattened out after six days of gains.

Trading was quiet with many investors out on vacation.

Bond yields continued to rise. The yield on the 10-year Treasury note hovered climbed above the 3 percent mark.

Keeping Score: The Dow Jones industrial average (^DJI) edged down nine points, or 0.06 percent, to 16,471 as of 1:45 p.m. Eastern. The Standard & Poor's 500 index (^GPSC) fell a point, or 0.08 percent, to 1,840 and the Nasdaq composite (^IXIC) was down 13 points, or 0.3 percent, at 4,153.

Higher Rates: The yield on the 10-year Treasury note rose to 3.01 percent from 2.99 percent Thursday. Bond yields have steadily climbed since Dec. 18, when the Federal Reserve announced it was paring back its bond-buying economic stimulus program.

'Road to Normal': "Interest rates are on a road back to normalcy after being artificially suppressed by the Fed," said Karyn Cavanaugh,
market strategist with ING U.S. Investment Management. Cavanaugh said she expects the yield on the 10-year note to rise to about 3.5 percent by the end of 2014.

GM Recalls: General Motors (GM) fell 48 cents, or 1 percent, to $41.04 after the company said it would have to recall 1.5 million cars in China to replace a bracket that secures a fuel pump.

Twitter Stalls: Twitter (TWTR) fell $5.77, or 8 percent, to $67.52. Twitter has soared in recent days. Even with Friday's sell-off, the social media company's stock is still up 63 percent this month.

Winding Down: There are only three trading days left in 2013, and most of Wall Street remains on vacation for the Christmas and New Year holiday. Volume for the last two trading days has been very low, and trading is expected to be slow Friday as well. There are no major economic reports or corporate earnings scheduled this week.

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