Reuters - Video

EDITION: U.S. | U.K. | IN

Top News

Wall St. rebounds; Facebook sinks

Monday, May 21, 2012 - 01:59

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.

▲ Hide Transcript

View Transcript

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

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Wall St. rebounds; Facebook sinks

Monday, May 21, 2012 - 01:59

Editors' Picks »

Most Popular »

Business »

Moving Pictures »

Dance of the northern lights Dance of the northern lights

Mon, 20 Oct, 2014 - (1:08)

Images of September Images of September

Thu, 02 Oct, 2014 - (1:00)

Still missing – MH370 Still missing – MH370

Fri, 05 Sep, 2014 - (2:05)

Burning Together Burning Together

Mon, 01 Sep, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, 22 Aug, 2014 - (3:12)

Images of August Images of August

Fri, 29 Aug, 2014 - (1:00)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, 11 Aug, 2014 - (2:27)

Burned memories Burned memories

Fri, 08 Aug, 2014 - (3:02)

Images of July Images of July

Fri, 01 Aug, 2014 - (1:20)

Oddly Enough »

Skateboards get rock star makeovers Skateboards get rock star makeovers

Thu, 23 Oct, 2014 - (1:28)

Giant rubber duck on show in Shanghai Giant rubber duck on show in Shanghai

Thu, 23 Oct, 2014 - (1:06)

Black bear cub goes Sunday shopping Black bear cub goes Sunday shopping

Thu, 23 Oct, 2014 - (0:27)

Christie's opens new Shanghai office Christie's opens new Shanghai office

Wed, 22 Oct, 2014 - (1:13)

White lion cubs unveiled to the public White lion cubs unveiled to the public

Tue, 21 Oct, 2014 - (1:01)

Ebola Halloween getup stirs controversy Ebola Halloween getup stirs controversy

Tue, 21 Oct, 2014 - (1:14)

Cuddly Ebola toy almost wiped out Cuddly Ebola toy almost wiped out

Mon, 20 Oct, 2014 - (0:34)

New MoMA exhibit cut out for Matisse New MoMA exhibit cut out for Matisse

Thu, 16 Oct, 2014 - (1:28)

London's Frieze art fair tests your senses London's Frieze art fair tests your senses

Thu, 16 Oct, 2014 - (1:28)

Paris streets become gallery for Plato-inspired sculptures Paris streets become gallery for...

Wed, 15 Oct, 2014 - (1:21)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, 19 Feb, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, 10 Jan, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, 29 Aug, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, 29 Aug, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, 05 Aug, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, 17 Dec, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sun, 09 Dec, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Mon, 10 Dec, 2012 - (10:39)