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U.S. stocks end down amid lackluster Facebook IPO; Dow down 0.59%

Published 05/18/2012, 04:36 PM
Updated 05/18/2012, 04:55 PM
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Investing.com - U.S. stocks finished lower on Friday on fears the European debt situation will escalate and rattle the global economy.

The iconic social network Facebook went public earlier although the share ended only slightly higher at USD38.23.

The Dow Jones Industrial Average closed down 0.59% on Friday, the S&P 500 index was down 0.74% while the Nasdaq Composite index finished down 1.24%.

Europe's debt crisis crowded out the much anticipated Facebook IPO.

Fears that Greece is moving closer to abandoning the euro sent shares trading lower.
European officials revealed they working on a contingency plan should Greece exit the eurozone, which would include minimalizing the fallout.

"A year and a half ago there maybe was a risk of a domino effect," says European Union trade commissioner Karel De Gucht, according to newswire reports.

"But today there are in the European Central Bank, as well as in the Commission, services working on emergency scenarios if Greece shouldn't make it. A Greek exit does not mean the end of the euro, as some claim."

De Gucht's words calmed currency markets, with some investors relieved at the thought Europe wants Greece in but if the country does go, officials will do all in their power to protect the larger Italy and Spanish economies.

Yet equities fell, as uncertainty means less business for many companies.

Facebook, whose IPO was delayed slightly, ended virtually unchanged from its initial price set at USD38 per share.

Ongoing concerns surrounding the botched trading strategy at JPMorgan weighed down on shares as well, as some reports see the snafu costing the bank as much as USD5 billion compared to an initial estimate of USD2 billion.

Leading Dow Jones Industrial Average gainers included Wal-Mart Stores, up 1.22%, AT&T, up 1.11%, and Caterpillar, up 1.00%.

Leading index losers included Hewlett-Packard, down 2.72%, DuPont, down 1.78%, and Chevron, down 1.68%.

European indices, meanwhile, were lower.

After the close of European trade, the EURO STOXX 50 fell 0.10%, France's CAC 40 fell 0.13%, while Germany's DAX 30 finished down 0.60%. Meanwhile, in the U.K. the FTSE 100 closed down 1.33%.





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