Saturday, May 19, 2012
Associated Press
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 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 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.
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.