Stock rally fades after warnings on euro
Trader Gregory Rowe works on the floor of the New York Stock Exchange on Thursday, as stocks rallied. The rally was short-lived, and indexes were down about 3 percent for the week when markets closed Friday. (Dec. 15, 2011) Credit: AP
An early rally faded on the stock market Friday, leaving indexes down about 3 percent for the week as worries resurfaced about a breakup of the euro. BlackBerry maker Research in Motion plunged after slashing its forecast for holiday sales.
The Dow Jones industrial average closed down 2.42 points Friday, less than 0.02 percent, at 11,866.93. It had been up as many as 99 points after the Italian government won a confidence vote on austerity measures. It turned mixed around midday as the Fitch ratings service warned it might downgrade the debt of Italy, Spain and four other countries that use the euro.
Materials and industrial companies rose, signaling that traders expect the economic recovery to remain on track. Utilities, health care and consumer staples companies lagged the market as traders sold stocks that are considered to be safer when the economy is weak.
Online games developer Zynga Inc. fell 5 percent below its $10 initial public offering price to close at $9.50 on the Nasdaq exchange Friday, as investors frowned on its over-reliance on Facebook. Zynga makes money on Facebook by selling virtual items such as jewelry and poker chips in its games.
Sarra Sounds Off, Ep. 15: LI's top basketball players On the latest episode of "Sarra Sounds Off," Newsday's Gregg Sarra and Matt Lindsay take a look top boys and girls basketball players on Long Island.
Sarra Sounds Off, Ep. 15: LI's top basketball players On the latest episode of "Sarra Sounds Off," Newsday's Gregg Sarra and Matt Lindsay take a look top boys and girls basketball players on Long Island.
