It’s going to take more than Facebook’s initial public offering to push the stock market higher.
It’s going to take more than Facebook’s initial public offering to push the stock market higher.
Facebook shares rose 23 cents above their $38 offering price. It seemed like everything else fell.
The Dow Jones industrial average has been in a slump over the past two weeks as traders saw an escalating risk Greece could leave the euro, causing more disruptions in markets. Remember the go-go days of May 1, 2012? The Dow was up 8.7 percent for the year. After Friday, it’s up just 1.2 percent.
On Friday, the Dow Jones industrial average dropped 73.11 points, to close at 12,369.38. It fell 3.5 percent for the week. The Dow has now declined on 12 of the last 13 trading days.
Nine of the 10 industry groups in the Standard & Poor’s 500 index fell. Financials dropped the most, 1.1 percent.
First, Facebook.
Trading for the year’s most eagerly awaited initial public offering was delayed about 30 minutes because of a glitch at Nasdaq. Nasdaq said the problem was with sending messages about whether trades had been executed. It was almost two-and-a-half hours before it said its trade messages were working normally.
The glitch sent shares of Nasdaq OMX Group Inc., parent company of the Nasdaq market, down 4.4 percent.
Facebook shares were priced at $38 and initially traded as high as $45. They closed at $38.23.
Europe was the bigger worry for investors. The Fitch ratings agency dropped Greece to the lowest possible grade for a country not in default Thursday. Fitch said Greece’s departure from the euro “would be probable” if elections next month do not reverse political trends in Greece, which have brought in politicians opposed to the terms of Europe’s bailout.
Also, ratings agency Moody’s downgraded 16 Spanish banks late Thursday, three days after downgrading Italy’s, noting they are vulnerable to huge losses on government debt.
Borrowing costs for Italy rose slightly to 5.76 percent on Friday. The yield on Spain’s 10-year bond fell slightly to 6.2 percent, a level that’s still very high by historic standards.
European shares edged lower, following several days of big losses. Britain’s FTSE 100 fell 0.1 percent, Germany’s DAX lost 0.6 percent and France’s CAC-40 fell 0.1 percent.
The Standard & Poor’s 500 index fell 9.64 points to close at 1,295.22. The Nasdaq composite index fell 34.90 points, or 1.2 percent, to close at 2,778.79.