News Column

Twitter drags on US shares

May 7, 2014



AMERICAN stocks fell sharply yesterday, with AIG pulling financial shares lower after disappointing earnings, and as a slide in Twitter took down other names in the technology and internet space.


The Dow Jones industrial average fell 129.53 points or 0.78 per cent, to 16,401.02; the S&P 500 lost 16.94 points or 0.9 per cent, to 1,867.72; and the Nasdaq Composite dropped 57.296 points or 1.38 per cent, to 4,080.759.


Twitter shares tumbled 17.8 per cent to $31.85 after the end of a sixmonth "lock-up" period that had restricted the sale of about 82 per cent of its outstanding stock.


The rout was in the busiest trading day for the stock so far as more than 134 million shares changed hands, above the near 118m shares traded on its debut. The 10-day volume average was just under 16m, just 1.2 per cent below its record close set a month ago.


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Source: City A.M. (UK)