RALLY COLLAPSES, FACEBOOK FALLS, GREECE SCARES PEOPLE AGAIN: Here's What You Need To Know

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Photo: By Justin Sullivan/Getty Images

Stocks were up for most of the day.  But then a late headline from Greece freaked everyone out.First the scoreboard:

Dow: 12,502, -1.6, -0.0%
S&P 500: 1,316, +0.6, +0.0%
NASDAQ: 2,839, -8.2, -0.2%

And now the top stories:

  • The stock market rally collapsed at around 3:30 on late reports out of Europe that Greece was preparing plans to leave the eurozone.  Dow Jones reported that Greek Prime Minister Lucas Papademos said that there was little room to renegotiate Greece’s bailout.  He was also quoted as warning that a Greek exit from the eurozone would be “catastrophic.” This Is What Happens If Greece Exits The Euro >
  • Facebook sold off again, closing at $31.00.  That’s down 8.9 per cent from yesterday.  In a new bombshell report from Reuters, Facebook’s underwriters Morgan Stanley, JP Morgan, and Goldman Sachs cut their earnings forecasts for the company during their IPO road show.  If that wasn’t weird enough, only a few big investors were notified of the adjustment.
  • BI’s Nicholas Carlson spoke with one furious hedge fund manager who bet $100 million on the Facebook IPO.  “If there was any enthusiasm for this deal, that got wiped out. Think about a guy who was going to put five grand on this. You go to Vegas and put $5,000 on the roulette wheel and it breaks, it’s like, hold on, I’m not going to do that. Suddenly you’re like this is Wall Street and I hate Wall Street.” Read Carlson’s Exclusive Here >
  • The big news overnight was that Fitch downgraded Japan’s sovereign credit rating to A+. “The downgrades and Negative Outlooks reflect growing risks for Japan’s sovereign credit profile as a result of high and rising public debt ratios,” wrote Fitch.  But the downgrade surprised no one.  In fact Asian markets actually rallied overnight.
  • In U.S. economic data today, we learned April existing home sales climbed to 4.62 million annualized, which was right in line with analysts’ estimates.  However, the Richmond Fed Manufacturing index fell to 4, missing economists’ expectation for 11. The Complete Story Of How The US Economy Grew, Then Tanked, And Then Recovered Again >
  • Gold fell around 1 per cent today.  However, we heard from two experts today both arguing that gold could soon hit $3,000/oz.  See Also: This Is The ULTIMATE Bullish Presentation For Gold >
  • Best Buy rallied today after reporting better-than-expected earnings. However, same-store sales fell 5.3 per cent year-over-year as the company continues to struggle to compete with online retailers like Amazon.com.  It doesn’t help the beleaguered big-box retailer is without a permanent CEO.  “Best Buy is in a turnaround, and the strategic priorities we laid out at the beginning of the year are just the first phase of the changes to come,” said Interim Best Buy CEO Mike Mikan.
  • Dell announces first quarter earnings after the closing bell.  Follow it LIVE on Business Insider.
  • Don’t Miss: The Big Jeff Gundlach Presentation That Brought Down The House At A Conference Last Week >

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