Today was all about Europe. But Facebook remains in the headlines.
First the scoreboard:
Dow: 12,496, -6.6, -0.0%
S&P 500: 1,318, +2.2, +0.1%
NASDAQ: 2,850, +11.0, +0.3%
And now the top stories:
- European markets got crushed today. Leading the way down were Italy’s FTSE MIB and Spain’s IBEX indices, which fell 3.7 per cent and 3.3 per cent, respectively. This bloodbath came ahead of an informal—but highly anticipated—EU summit in Brussels today, where leaders are expected to discuss Greece’s membership in the euro currency among other things. Here’s What Will Happen At Today’s Big EU Summit >
- In a note to clients, UBS’s George Magnus warned that there is basically no good way for Greece to exit the euro. It “should be seen as the plague under all circumstances.” But whatever the case, Magnus warns that a disorderly exit would cause rampant contagion. This Is What Happens If Greece Exits The Euro >
- Amidst all of this volatility, Nomura’s Michael Kurtz believes the markets are blowing fears way out of proportion. “[A]ll this market weeping and gnashing of teeth could prove yet another significant buying opportunity: Greece may yet exit the euro after all, but with effective ECB and global policy action its impact could be limited to no more than the rounding error that the Hellenic Republic’s small size and deplorable politics render most fitting,” he wrote.
- April new home sales climbed 3.3 per cent to 343k annualized. Economists were looking for a more modest increase to just 335k. In more good housing news, the FHFA house price index jumped 1.8 per cent, beating expectations of 0.3 per cent. But the U.S. housing market isn’t completely in the clear. Bank of America economist Michelle Meyer notes that banks continue to be reluctant to lend to lower quality buyers. Gary Shilling And PIMCO’s Mark Kiesel Debate About The Health Of U.S. Housing >
- Oil prices fell below $90/barrel for the first time since last October. Fears of global economic deceleration persist. However, low oil prices mean gas prices will likely get cheaper. These Eight Regions Could Be Sitting On Most Of The World’s Oil >
- Gold tumbled for the third day in a row. Gold futures settled at $1,548/oz, down 1.8 per cent from yesterday. This despite a parade of gold bulls predicting $3,000/oz. It also fell because when it’s risk off, everything sells The Truth About Gold >
- Details continue to surface regarding the circumstances surrounding Facebook’s IPO. Wedbush analyst Michael Pachter told Business Insider’s Joe Weisenthal something extraordinary. “However, had Mr. Zuckerberg worn a jacket and reassured investors that he is aligned with their expectations, perhaps more people would be stepping in to buy now.” Meanwhile, Aswath Damodaran, NYU’s valuation guru, thinks Facebook is worth $29 per share. EXCLUSIVE: Here’s The Inside Story Of What Happened On The Facebook IPO >
- In a late headline, Google won its big lawsuit with Oracle over patents used for Android. Oracle claimed Google had illegally used certain Java patents for its smartphone.
- Hewlett-Packard announces quarterly earnings after the close. Follow it LIVE on Business Insider.
- Don’t Miss: The Most Imports Finance Books Ever Written >