USA: Wall Street rises on GDP, stimulus hopes. Facebook shares down on lack of financial outlook

Record ID: 187157

  • Title: USA: Wall Street rises on GDP, stimulus hopes. Facebook shares down on lack of financial outlook
  • Date: 27th July 2012
  • Summary: NEW YORK, NEW YORK, UNITED STATES (JULY 27, 2012) (REUTERS) NASDAQ EXTERIORS
  • Embargoed: 11th August 2012 13:00
  • Keywords:
  • Location: Usa
  • Country: USA
  • Topics: Business,Finance
  • Reuters ID: LVADA8GIZ9D6WJ7VZJ8AS46XHMZA
  • Story Text: Wall Street rose on Friday (July 27) following a report on economic growth which met expectations and on hopes for further stimulus from the Federal Reserve and the European Central Bank.
    Economic growth slowed, as expected, in the second quarter as consumers spent at their most sluggish pace in a year. The figure was better than investors' worse fears but still weak enough to potentially push the Fed closer to pumping more money into the economy.
    Shares of Facebook, which have shed a third of their value since the company's ill-starred debut at $38 on May 18, were trading at $22.50 (USD) about 10 minutes after the market open on Friday.
    The stock, which closed at $26.85 on the Nasdaq on Thursday, fell below $24 in post-market trading after the company reported its results just after the close. Facebook reported a drastic slowdown in revenue growth and failed to offer financial forecasts that quelled fears about its ability to boost advertising growth.
    The Dow Jones industrial average gained 182.40 points, or 1.44 percent, to 12,858.45. The Standard & Poor's 500 Index added 16.36 points, or 1.22 percent, to 1,354.25. The Nasdaq Composite Index added 46.66 points, or 1.63 percent, to 2,900.90.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2012. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register