Facebook shares sink as US stocks add to records
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NEW YORK, Jan 12 — Shares of Facebook tumbled today after it announced an overhaul of its newsfeed, while US stocks added to records following data showing higher retail sales in December.
About 30 minutes into trading, the Dow Jones Industrial Average was at 25,737.70, up 0.6 per cent.
The broad-based S&P 500 gained 0.3 per cent to 2,776.92, while the tech-rich Nasdaq Composite Index advanced 0.2 per cent to 7,222.50.
All three indices closed at records yesterday.
The early gains followed a busy morning of economic data and bank earnings and suggested investors remained broadly bullish in the wake of the giant US tax cut enacted in December.
A holiday season jump in online shopping sent US retail sales higher in December, and helped push 2017 sales to their biggest gain in three years, according to government data.
Retail sales for all of last year rose 4.2 per cent, the biggest increase since 2014, outpacing the 3.2 per cent rise in 2016, according to the report.
Facebook dropped 4.2 per cent after announcing a plan to update its newsfeed to emphasize posts from friends and family over other content.
The shift prompted fears it could drive away advertisers if people spend less time on the social network.
JPMorgan Chase rose 1.0 per cent after reporting fourth-quarter earnings of US$4.2 billion, down 37 per cent from the year-ago period due to the accounting of one-time costs connected to the tax bill.
The bank also reported overall loan growth.
But Wells Fargo slid 0.6 per cent as fourth-quarter earnings rose 17 per cent to US$6.2 billion, but were marred by US$3.3 billion in litigation costs, some in the aftermath of the fake accounts scandal. — AFP