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The Nasdaq board in New York's Times Square.
Updated May 18, 2012, 11:55 a.m. ET
Stocks declined as investor optimism surrounding Facebook faded soon after the shares debuted for trading.
The Dow Jones Industrial Average lost 32 points, or 0.3%, to 12411, in late-morning trading on Friday. Ahead of Facebook's debut, the Dow was trading little changed and was on track to suffer the largest weekly point and percentage losses of the year.
The Standard & Poor's 500-stock index fell two points, or 0.2%, to 1303. The Nasdaq Composite shed 17 points, or 0.6%, to 2797.
Facebook's shares rose out of the gate. Minutes after they started trading, the shares were at $40, or 5.3% above the initial-public-offering price of $38 a share. The shares retreated minutes after that.
"Facebook is a nice, one-day diversion," said Paul Nolte, managing director at Dearborn Partners. He said after Facebook's debut, investor focus will turn back to Europe and concerns about contagion from Greece.
INSIGHT FROM CFO JOURNAL
Facebook CFO Owns Over $200 Million in Options, Restricted Stock
Sears Weighing Rare Taxable Spin-Off
At Big U.S. Companies, 60% of Cash Sits Offshore: J.P. Morgan
Read CFO Journal. »
"It feels as though we're further away from a resolution today than we were two months ago," Mr. Nolte said.
European stocks were broadly lower after Moody's Investors Service downgraded a number of Spanish banks and Fitch Ratings cut Greece's credit rating further into junk status. The Stoxx Europe 600 was down 0.8% at a five-month low and headed for a fifth straight loss.
Asian markets closed lower on the back of U.S. losses and the early selloff in Europe. Japan's Nikkei Stock Average slid 3%, and China's Shanghai Composite shed 1.4%.
Crude-oil prices gave up 0.7%, to $91.88 a barrel, while gold prices rose 1.2%, to $1,593.80 a troy ounce. The dollar lost ground against the euro and yen.
There are no major economic releases due out on Friday.
In other corporate news, Kraft Foods advanced after the blue-chip food company said the Internal Revenue Service provided a favorable tax ruling, confirming the tax-free status of its planned North American grocery spinoff.
Autodesk slumped after the design-software maker reported fiscal first-quarter earnings that matched estimates but provided a somewhat downbeat second-quarter outlook.
Foot Locker jumped after the athletic-footwear seller reported fiscal first-quarter earnings that were well above expectations, backed by increasing margins and same-stores sales.
Salesforce.com climbed after the business-software maker reported fiscal first-quarter earnings and revenue that beat expectations and provided an upbeat outlook for the year.
Write to Tomi Kilgore at tomi.kilgore@dowjones.com
——WSJ
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