US stocks open lower; Yelp debuts after IPO
Friday , March 02, 2012 - 10:17 AM
NEW YORK— Stock indexes were mixed in midday trading Friday, putting the Dow Jones industrial average on track for its first weekly loss following two weeks of gains.
The Dow fell 12 points to 12,967 at 11:30 p.m. Eastern time.
Yelp Inc. jumped more than 60 percent on its first day of trading. The online review site’s initial public offering valued the company at $900 million.
In other trading, the broader S&P 500 is down 2 points to 1,372. The Nasdaq is up 3 points to 2,992.
Both the Dow and Nasdaq are trading below milestones hit earlier this week. The Dow closed above 13,000 Tuesday for the first time since May 19, 2008. The Nasdaq composite index broke the 3,000 level Wednesday for the first time since 2001.
These round numbers mean little to professional investors, said Brad Sorensen, director of market and sector analysis at Charles Schwab. But the media attention they generate may lure Americans back into the stock market, he said, and their savings could push indexes even higher.
"We’re a little more surprised there isn’t more enthusiasm given the run we’ve had over the last couple of months," Sorensen said. "The individual retail investor has been reluctant to participate, but we’re looking to them to fuel the next leg of this rally."
Oil fell 1.4 percent to $107.42 a barrel after Iranian media reported an explosion at a Saudi Arabia pipeline. Saudi Arabia denied the report. Oil and gas stocks had some of the steepest drops in the S&P 500 index. Alpha Natural Resources Inc. and Anadarko Petroleum Corp fell by more than 3 percent.
Among other stocks making big moves:
— Sara Lee Corp. jumped 6 percent. The food company said its shareholders will get up to $4.5 billion in stock when it spins off its international coffee and tea business later this year.
— Genesco Inc. gained 4.2 percent. The clothing company raised its 2013 earnings outlook above analysts’ estimates. Genesco also reported quarterly earnings that topped expectations.
— CVR Energy Inc. fell less than 1 percent after the Texas oil refiner rejected a $2.6 billion hostile takeover bid from the billionaire investor Carl Icahn.
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