Market Wrap: Facebook Slides Below $30; RIM Admits Trouble; Markets Higher on Home Prices, China Stimulus
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Market wrap-up for May 29th
End of the Day: Dow Jones up 125.9 to 12,580.69; S&P 500 up 14.6 to 1,332.42; Nasdaq up 33.5 tp 2,870.42
The following is a brief summary of events moving markets today:
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End of the Day: Dow Jones up 125.9 to 12,580.69; S&P 500 up 14.6 to 1,332.42; Nasdaq up 33.5 tp 2,870.42
The following is a brief summary of events moving markets today:
- This is getting more awkward than a middle school dance: Facebook (Nasadq: FB) is continuing to set new records for IPO mediocrity today, as shares moved below the $30 level down to under $29. The level is 31 percent below where the stock opened at on May 18th, cutting billions upon billions from its market cap. Click here. for more color.
Volume at nearly 78 million shares is a far cry from its post-IPO daily average of 168 million.
- Like clockwork: There are few things you can count on in life. You'll pay taxes to someone. Swiss clocks are a pure embodiment of timekeeping and style. American Idol will be back for its 40th season. And, Research In Motion Limited (RIM) (Nasdaq: RIMM) will somehow make a droopy tech company appear sparkling (we're looking at you, Facebook).
After the market closed, CEO Thorsten Heins issued an update on the company's status. The company hired J.P. Morgan and RBC Capital Markets to advise on options and now expects to report a loss for its first-quarter 2013.
Heins attributed the loss to "on-going competitive environment...impacting [its] business in the form of lower volumes and highly competitive pricing dynamics in the marketplace."
In addition, Heins said RIM would no longer be giving quantitative guidance.
- Mixed financials mostly positive: U.S. markets held on to gains Tuesday following a preliminary poll in Greece showing positive sentiment for a pro-euro-zone political party. Greece is holding the elections following failure to form a government a few weeks ago and worries its new leadership wasn't on the same page as the rest of Europe.
Otherwise, Asian markets got a boost from China, which may be rumored to unload another round of stimulus following recent easing economic data.
The Case-Shiller 20-Cty Index for March fell 2.6 percent from a 3.5 percent drop in February and compared to expectations calling for a wider 2.8 percent tumble. The reading is the narrowest drop -- albeit, still a drop -- the index recorded since December 2010. For more color on the index through first-quarter 2012, click here.
- European financials: More exciting than a Taiwanese parliamentary meeting: Spain's Bankia said it will ask for a €19 billion capital injection from the country, a move that had many questioning the financial health of banks in the region. (Note: After the market closed, the ECB said Spain rejected the request.)
In addition, three Spanish banks, Liberbank, Ibercaja and Caja3, agreed to a "merger-a-trois" of sorts. Total assets in the newly formed bank will be about €110 billion.
Spanish central bank governor Miguel Ángel Fernández Ordóñez resigned his position about one month early.
Spain is (falsely) quoted as saying "Nothing to see here! Let's keep it moving, people!"
- Mini merger Monday:
- Teledyne Technologies (NYSE: TDY) entered an agreement to acquire LeCroy Corp. (Nasdaq: LCRY) for $14.30 per share, or about $291 million in cash. For more color, click here.
- GS Capital Partners LP and P2 Capital Partners, LLC to take Interline Brands, Inc. (NYSE: IBI) private for $25.50 per share. For more, click here.
- Trustmark Corporation (Nasdaq: TRMK) to acquire BancTrust Financial Group, Inc. (Nasdaq: BTFG) for about $55.4 million. Click here for more color on the deal.
- FedEx Corp. (NYSE: FDX) signed an agreement to acquire the Brazilian transportation and logistics company, Rapidão Cometa Logística e Transportes S.A. Click here for more.
- Teledyne Technologies (NYSE: TDY) entered an agreement to acquire LeCroy Corp. (Nasdaq: LCRY) for $14.30 per share, or about $291 million in cash. For more color, click here.
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