Market Memorial: Cashing in Ahead of Holiday, Facebook’s Fallout
Markets closed down on Wall Street Friday: Dow -0.62%, S&P -0.24%, Nasdaq -0.10%, Oil +.07%, Gold +1.00%.
On the commodities front, Oil (NYSE:USO) declined to $90.85 a barrel. Precious metals also declined, with Gold (NYSE:GLD) falling to $1575 an ounce while Silver (NYSE:SLV) rose 0.29% to settle at $28.43.
Here’s your Cheat Sheet to Friday’s top stock stories:
The fiasco of Facebook’s (NASDAQ:FB) IPO listing has left exchange operator Nasdaq OMX Group (NASDAQ:NDAQ) open to claims from market participants who lost money on failed or delayed trade executions, and these claims could well exceed $100 million. A system glitch delayed the execution of many clients’ trades, and the brunt of the losses were borne by four of the top market makers in the Facebook IPO – Citadel Securities, UBS AG(NYSE:UBS), Knight Capital (NYSE:KCG), and Citi (NYSE:C). These market makers could end up claiming over $100 million from Nasdaq.
Investing Insights: Why Did Pandora Pop 20% and Facebook PLUNGE 16.5% This Week?
Meanwhile, Morgan Stanley (NYSE:MS), the lead underwriter of Facebook’s (NASDAQ:FB) IPO, will compensate retail investors for their losses from having overpaid for the stock in Friday’s IPO, according to an Associated Press report. The firm is reportedly reviewing orders its retail clients placed for Facebook stock, and will make price adjustments for clients determined to have paid too much, according to a source familiar with the matter.The person didn’t give details on what would constitute overpaying.
Talbots Inc. (NYSE:TLB) shares tanked to $1.55 after it announced Sycamore Partners is not pursuing a takeover anymore. The company is still open to a deal with them at $3.05 a share but it also will pursue other options. Without the deal, stakes are higher for Talbots which has seen losses from sales declines. Its debt has also more than doubled, according to MarketWatch.
Big Lots Inc. (NYSE:BIG) shares jumped 4.5% in Friday afternoon trading. Earlier in the week, the company announced its intention to buy back $200 million additional stock. It also announced that its quarterly profit dropped 22% from slow sales.