Wall Street flat after Facebook IPO listed
Washington: US stocks reversed earlier gains after Facebook Inc stumbled in its market debut on NASDAQ, a news wire reported on Friday.
Shares of Facebook were volatile in early trading, falling to near breakeven levels after early gains of more than 10 percent. In early trading it was the Nasdaq's most actively traded stock, with more than 100 million shares traded in the first five minutes of trading.
After a delay in the opening print that drove up anxiety levels among traders and onlookers outside the Nasdaq, the company's closely watched stock began trading at $42.05, compared with an IPO price of $38. It rose as high as $45 before pulling back.
The Nasdaq said it was investigating an issue in delivering trade execution messages from the IPO cross in Facebook.
"We're under a little bit of pressure after this less-than-amazing opening, which is not elevating the market like some had speculated," said Frank Davis, director of sales and trading at LEK Securities in New York, quoted the news wire.