Market Wrap: JCPenney Doin' Deals; Spain Weighs; Morgan Stanley Defends Facebook IPO Position

May 30, 2012 5:27 PM EDT
Market wrap-up for May 30th

End of the Day: Dow Jones down 160.8 to 12,419.86; S&P 500 down 19.1 to 1,313.32; Nasdaq down 33.6 to 2,837.36

The following is a brief summary of events moving markets today:
  • Spanish Banks Take a Siesta: U.S. markets succumbed to fears related to Spanish banks Wednesday following Tuesday's post-Memorial Day strength. Spanish retail and corporate deposits dipped by €31.44 billion to €1.624 trillion.

    The European Union is also mulling the idea of setting up a "banking union" of sorts, which would aid in spreading out banking risk across the 17-member union.

  • Breaking Up is Easy...Walking Away is the Tough Part: The Pep Boys - Manny, Moe & Jack (NYSE: PBY) shares dropped about 20 percent on Wednesday and, no, it had nothing to do with including "Manny, Moe & Jack" in the company name. Late Tuesday night, the company said acquisition talks with the Gores Group fell apart.

    Though Pep Boys will get a $50 million breakup fee from Gores Group (and likely have to give the ring back as well), the announcement erases about two years of negotiations between Pep Boys and possible suitors. Pep Boys market cap is now hovering around the $470 million level.

  • What, Us Worry?: As noted earlier, Morgan Stanley (NYSE: MS) CEO James Gorman defended his firm's role in the Facebook (Nasdaq: FB) IPO, saying it worked 100 percent within the rules. He was disappointed with the steep decline in Facebook's price following the offering, but said any talks of "nefarious activity" surrounding Facebook's IPO are "untrue."

    Which probably means its true. Because no one on Wall Street lies or sugar coats things.

    The comments really didn't do anything for Facebook, which ended down 2.3 percent to $28.19 (after opening the session higher). The stock looks to be hankering for more losses in late-Wednesday trading.

  • Back to Sales!: J.C. Penney (NYSE: JCP) may be looking to add a Friday sales event, retreating from its non-promotional stance. That's not every Friday, mind you, just about five currently planned.

    One Deutsche Bank analyst said the events will be called "Best Price Friday," and could include the infamous Black Friday in November with that lineup. Whether or not the prices will be the same, but just with "special discount" tags affixed, or actual markdowns is yet to be seen.
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