Facebook will launch its hotly anticipated IPO tomorrow morning in a miserable trading environment.� The social network’s debut will suck all of the air out of the market on Friday when it starts trading at 11 a.m., but it could just be a temporary distraction. Even generally bullish strategists seem to see few near-term catalysts for stocks.
Large-cap stocks have fallen for five days in a row — the Dow has ended in the red on 11 of the past 12 days. That streak (down 11 of 12) is the worst since 2002 for the Dow. The Dow fell 124 points on Thursday.
Europe is mostly to blame for the drop, but U.S. economic data certainly hasn’t helped. On Thursday, the Philadelphia Fed released a survey showing that manufacturing activity in the region contracted unexpectedly in May, and local companies are loathe to start hiring again.
The daily headlines about JPMorgan Chase’s (JPM) (down 4.3% Thursday) woes are also keeping pressure on U.S. banks. The Financial Select Sector SPDR ETF (XLF) fell 2% on Thursday.
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