Market Recap: Facebook Proves Value Sucked Dry, Google Fights EU
Markets closed up on Wall Street today: Dow +1.09%, S&P +1.60%, Nasdaq +2.46%, Oil +1.62%, Gold +0.06%.
Here’s your Cheat Sheet to today’s top stock stories:
Google (NASDAQ:GOOG) has a “matter of weeks” to resolve a probe and avoid possible fines over allegations it discriminates against rivals, the European Union’s antitrust authority warned. EU Competition Commissioner Joaquin Almunia asked Google Chairman Eric Schmidt for proposals to address concerns that it promotes its own search services while copying rivals’ travel and restaurant reviews, and that its agreements with websites and software developers stifle competition in advertising.
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After exchange owner BATS shot itself in the foot in March with the mishandling of its IPO, Nasdaq (NASDAQ:NDAQ) blushed on Friday as technical problems at the exchange marred the debut of its trophy listing, Facebook (NASDAQ:FB). Blaming the “poor design” of its IPO auction software, Nasdaq CEO Robert Greifeld disclosed that the systems fell into a “loop” that delayed opening trades of the most hotly-anticipated tech debut since Google (NASDAQ:GOOG).
In more Facebook news, on day two as a publicly-traded stock, its share price sank below its $38 IPO price, bringing down other stocks in the social-networking arena. With its second day of lackluster performance, it continues raising eyebrows over the offering. One analyst attributes this to a miscalculation in demand. Michael Pachter of Wedbush Securities wrote in a research note on Monday, “We believe the underwriters overestimated demand.” The stock closed down 10.99 percent to $34.03.
Cooper Industries PLC (NYSE:CBE) saw a greater than 25 percent jump in its U.S.-listed shares after it agreed to be purchased by Eaton Corp. (NYSE:ETN). This deal has a $11.8 billion value and will come in cash and stock. Eaton also announced it would shift its incorporation from Ohio to Ireland to save on taxes.
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