Facebook shares get shot in the arm

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Reuters

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New York - Stumbling Facebook shares got a shot of adrenaline on Thursday and pushed five percent higher as US stocks traded lower on dull jobs and economic growth data.

Even as the markets remained under a cloud of sluggish growth and eurozone troubles, Facebook rebounded from an early 4.5 percent loss to finish the day with a solid $1.41 gain to $29.60.

Stocks overall fell: at the closing bell, the Dow Jones Industrial Average was down 23.99 points, or 0.19 percent, to 12,395.87.

The broad-based S&P 500 lost 2.84 points (0.22 percent) to 1,310.48, while the tech-rich Nasdaq slipped 10.02 (0.35 percent) to 2,827.34.

“The major averages are down for a second day amid disappointment over this morning's economic data,” said Wells Fargo Advisors.

With oil prices sinking, “energy stocks are leading the market lower”.

Sellers took their cue from the government's cutting its estimate for first-quarter economic growth to 1.9 percent from 2.2 percent, confirming the sluggish pace and raising questions over how much of a rebound could be expected in the current quarter.

Meanwhile two jobs reports - weekly unemployment claims and private-sector job creation in May - both were disappointing, pointing to slow improvement in the economy. - AFP


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