Greece sinks stocks despite Facebook IPO
Trader Michael Zicchinolfi works on the floor of the New York Stock Exchange in Manhattan last week. (May 11, 2012) Credit: AP
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 Friday. 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 that 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 dropped 73.11 points, to close at 12,369.38. It fell 3.5 percent for the week. The Dow has declined on 12 of the last 13 trading days.
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.
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.
The Standard & Poor's 500 index fell 0.74 percent to close at 1,295.22. The Nasdaq composite index fell 1.24 percent to close at 2,778.79. -- AP
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