NEW YORK — Morgan Stanley, the lead investment bank in Facebook’s troubled initial public offering, will compensate investors who overpaid when they bought Facebook’s stock in Friday’s IPO, according to a source familiar with the matter.
This person said the firm is reviewing orders its retail clients placed for Facebook stock, and will make price adjustments if the clients paid too much. The person spoke on condition of anonymity because they were not authorized to discuss the matter publicly. The person did not say what amount constituted overpaying for Facebook’s stock.
The world’s largest social network’s IPO was highly anticipated. But technical problems with the Nasdaq Stock Market delayed its open on Friday, and the stock closed nearly flat on its first trading day at $38.23.
It’s down 14 percent as of Thursday.
Jobless aid applications dip
WASHINGTON — The number of people seeking unemployment benefits changed little last week, signaling modest job growth.
The Labor Department said Thursday that weekly applications for benefits dipped by 2,000 to a seasonally adjusted 370,000.
Applications have leveled off this month after declining from April’s five-month high of 392,000. The four-week average, a less volatile measure, has also dropped — it was 370,000 last week.
Mortgage rates at record low
WASHINGTON — The average U.S. rate for the 30-year fixed mortgage fell to a record low for a fourth straight week. Cheap mortgages have helped boost home sales modestly this year.
Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan dipped to 3.78 percent. That’s down from 3.79 percent last week and the lowest since long-term mortgages began in the 1950s.
Sony ending Sharp venture
TOKYO — Sony Corp. is ending its joint venture with rival electronics maker Sharp Corp. to produce and sell large liquid-crystal displays for TVs — part of its new strategy to buy panels rather than invest in manufacturing them.
Sony said Thursday it will sell back to the joint venture Sharp Display Products Corp. all 7 percent of the stake it has held since 2009. Sony won’t lose any money as it will receive $126 million, the same as what it paid for shares in the Sharp subsidiary, which produces panels in Sakai city, western Japan.
Tiffany & Co. cuts outlook
NEW YORK — Tiffany & Co., a bellwether of luxury spending, says its sales aren’t rising as fast as last year in the U.S. or abroad, and the gift and jewelry chain cut its forecasts for sales and profit for the year.
Tiffany delivered its lower outlook on Thursday as it reported first-quarter profit essentially the same as a year ago and below what analysts were expecting.
The news from Signet Jewelers Ltd, which targets a more moderate-income market, was similar. Signet reported lower sales than Wall Street expected, and it forecast slower growth.