Stocks Suffer Worst Week Of Year; Facebook No Help

Facebook's (FB) IPO failed to lift sentiment Friday, as stocks extended losses and logged their worst week of the year.

The Nasdaq slumped 1.2% and the S&P 500 fell 0.7%. Both closed a few points above their respective 200-day moving averages. Meanwhile, the Dow Jones industrial average gave up 0.6%. Volume surged across the board due to options expiration.

For the week, the Nasdaq tumbled 5.3%. That's the biggest loss since the week ended Sept. 23. The S&P 500 shed 4.4% and the Dow 3.5%.

The highly anticipated IPO Facebook fell 9% on the session after opening at 42.05. It rose a modest 23 cents from Thursday's offering price of 38. According to a special report on big-name IPOs of the past 20 years from S&P Capital IQ, Priceline.com (PCLN) had the best first day of trading back in March of 1999. The stock rocketed 331% from its offering price of 16.

Social networking-related stocks also got hurt. Zynga (ZNGA), which develops games for Facebook, swooned 13% in volatile trading.

LinkedIn (LNKD) dropped 6% in more than three times average trade. LinkedIn more than doubled in its debut a year ago.

Elsewhere, Zumiez (ZUMZ) skidded 7% and sliced its 50-day moving average. Late Thursday, the retailer delivered Q1 earnings that blew past views. But it gave a downbeat outlook for the current quarter.

On the upside, Foot Locker (FL) gapped higher, but finished near its session low. The stock rose 8%, but closed below its 50-day moving average. Before the open, the retailer beat views with a 38% rise in Q1 earnings and 9% gain in sales.

Salesforce.com (CRM) gapped up and gained 9% in nearly four times average volume. Late Thursday, the maker of customer relationship management software posted quarterly earnings and sales that topped expectations. Management lifted Q2 guidance above the Street's forecasts. The stock snapped a four-week slide.

By VINCENT MAO, INVESTOR'S BUSINESS DAILY
Posted 05/18/2012 05:14 PM E