Falling oil prices dragged down energy shares. But the major indices still posted gains for the week, as Fred Katayama reports.
Oil prices drive Wall Street lower
Stocks gave back some gains on Friday. Investors assessed valuations after the S&P 500 had its best two-day performance in more than two months on Thursday.
Peter Cardillo of First Standard Financial explains what drove stocks lower.
SOUNDBITE: PETER CARDILLO, CHIEF MARKET ECONOMIST, FIRST STANDARD FINANCIAL, (ENGLISH) SAYING:
“One, just the post-Fed rally, some profit taking on that. And then of course, you know, we have oil prices which are down rather sharply. And they’re down because it looks as though Saudi Arabia and Iran can’t seem to reach some sort of output agreement.”
For the week, stocks notched big gains after the Fed decided to hold interest rates steady.
Twitter shares jumping after sources said the microblogging company is exploring selling itself. The Wall Street Journal reports that Salesforce.com is considering taking over Twitter. That sent shares of Salesforce sharply lower. They were among the biggest decliners on the S&P 500.
Another major drag on the S&P: Facebook. The Wall Street Journal reports the social media giant vastly overestimated the amount of time users spent viewing video ads on its site for two years.
Sources say Goldman Sachs is slashing 30 percent of its investment banking jobs in Asia outside Japan. The move comes amid a slowdown in activity in the region.
In Europe, banks and utilities led shares lower.