May 21 - Summary of business headlines: Stocks climb after biggest weekly drop of 2012; Facebook closed below $38 IPO price; Lowe's cuts forecast on slow spring; Business economists expects job market to pick up next year. Conway G. Gittens reports.
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Wall Street enjoyed what was a rare up day this month with investors encouraged by comments out of weekend G8 meetings, where heads of the world's leading economies vowed to protect the global economy and prevent a euro zone break up.
Facebook, however, continued to be the talk of the Street. The stock opened below its $38 initial public offering price. While there were some concerns the Nasdaq's poor execution of the debut on Friday played a role in Monday's decline, some say the fall is indicative of something more.
Joseph Foudy of NYU Stern School of Business:
JOSEPH FOUDY, ASSISTANT PROFESSOR OF ECONOMICS AND MANAGEMENT, NYU STERN SCHOOL OF BUSINESS, SAYING:
"Social media is everything, particularly for a younger generation, but that doesn't indicate that anybody can make money with it. Obviously without water and air we'd all be dead, but that doesn't mean any companies able to capture the value from those. And with Facebook as well, the fact that friends are on there doesn't mean that there's an advertising or revenue stream that's clear."
Shares of Facebook settled the day down 11 percent at just over $34 a share.
Lowe's cut is outlook for the fiscal year, citing slowing demand at a time when revenues typically start to pick up. The forecast confirms the warm winter stole sales from the spring instead of adding sales.
In a bit of good news, the labor market is expected to get up to speed next year, adding an average of 200,000 jobs per month, according to a survey by the National Association of Business Economics.
As for the markets: Blue chips saw a triple-digit gain, the S&P 500 gained 1.6 percent, while the Nasdaq rallied 2-1/2 percent.
European equities saw a modest bounce after reassuring comments from the G8 over the weekend.
Conway Gittens, Reuters
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