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Europe drags down Wall St.

Thursday, May 17, 2012 - 02:00

May 16 - Summary of business headlines: Europe worries drag down Wall Street, Housing and factory data encouraging; Facebook ups size of IPO; Crude and gold under pressure. Bobbi Rebell reports.

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PLEASE NOTE: CONTAINS 4:3 MATERIAL A volatile trading day with investors on edge over concerns about Europe. The European Central Bank said it has stopped providing liquidity to some Greek banks because they have not been successfully recapitalized. Greece has now scheduled a new election for June 17th after failing to cobble together a coalition government. But so far the key Euro zone countries are still standing behind the country despite worries about its future as a member of the euro zone. Laura Gonzalez of Fordham School of Business SOUNDBITE: LAURA GONZALEZ, ASSISTANT PROFESSOR OF FINANCE AND ECONOMICS, FORDHAM SCHOOL OF BUSINESS (ENGLISH) SAYING: "For political reasons, for the stability of the zone, France and Germany will do their best to help Greece. But they really need to accept that they need to change their status quo. " Groundbreaking for new homes rebounded in April. Housing starts up 2.6 percent according to the Commerce Department. And a separate report from the Federal Reserve showed factory activity gained steam as well producing the largest gain since December of 2010. Federal Reserve policymakers thought they may need to do more to help the U.S. recovery if it stumbles. But there was almost no support for extending the so-called "Operation Twist" program that is due to end next month. That's according to minutes from the Fed's meeting in late April. Facebook upped the size of its IPO adding 84 million shares from early investors. The deal, which could be worth more than $100 billion is set to price Thursday evening. Crude oil futures fell for a fourth straight session, setting the lowest intraday price since November 3rd. Spot gold fell to new 2012 lows on Wednesday touching $1,527 an ounce at one point - a level not seen since December. Taking a look at the closing numbers, in the U.S. it was red across the board. In Europe, shares were mostly lower but the CAC 40 managed a small gain. Bobbi Rebell, Reuters.

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Europe drags down Wall St.

Thursday, May 17, 2012 - 02:00