Facebook Stock, Markets Take a Hit

May 30, 2012 5:30pm

FACEBOOK STOCK TAKES ANOTHER HIT

The tech company’s stock closed at $28.19, a new post-IPO low.   The stock is down nearly 12 percent in the two trading days this week.  It’s down nearly 26 percent from the IPO price of $38.

Mark Zuckerberg is about $5 billion poorer than he was the day the stock went public.

All the other trouble in the markets today can be blamed on “global economic concerns.”

 

STOCKS DOWN

The Dow Jones Industrial Average closed down 160.83 points, or more than 1 percent, to 12,419.86.  The S&P and Nasdaq were lower as well.

 

OIL TUMBLES

Oil closed at $87.82 in New York trading today, the lowest close since October last year.

 

There may be a slight silver lining here as gas prices will also be lower this summer freeing up some extra cash for consumers.  That said if job and GDP growth truly stall any positive effects of low gas prices won’t matter.

 

U.S. ECONOMY IS BAD, BUT INVESTORS STILL LIKE IT BETTER THAN ANYTHING ELSE

The 10-year U.S. Treasury yields dipped to 1.625 percent — levels last seen in 1946 according to the Financial Times.  Yields on German debt also hit record lows.

 

As economist Diane Swonk put it, investors are “reaching for the cleanest shirt in the dirty shirt pile.”

 

 

CLOSE

POINT CHANGE

% CHANGE

Dow

12,419.86

-160.83

-1.28%

S&P 500

1,313.32

-19.10

-1.43%

Nasdaq

2,837.36

-33.63

-1.17%

 

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