♪ >> this is "n.b.r." >> good evening, everyone i am susie gharib, a messy start for facebook as the social networking stock failed to see a big pop on its first day of trading. >> and i am tom hudson, the spring selloff continues with the longest losing streak for stocks in almost 40 years. >> and the ceo of sysco one of the world's largest food companies tells us about the challenges of high commodity prices and we wrap up our series, agriculture economy. >> that and more tonight on "n.b.r." >> the frenzy expected for facebook friday fizzled today, the hotly anticipated ipo closed at just pennies above its offering price of $38 a share, still the stock sale raised

$18 billion and more than 406 at this million shares were traded, that is a record volume for an ipo. >> susan pratt takes a look at opening day. >> facebook history was made here today at the nasdaq, when facebook, the stock, ticker symbol fc began trading. >> facebook ceo mark zuckerberg range the bell remotely from the company's headquarters in california. >> our mission isn't to be a public company, our mission is to make the world more open and connected. >> bob was on hand for the big day and to give zuckerberg some new does. >> this is the first time we got the nasdaq hoody. >> but too many orders delayed facebook's opening by a few hours. >> somewhat marg its debut. and there was disappointment about the lack of a first day pop. some had even expecte the shares to double. instead, facebook opened at 42

and change, hit a high of 45, and there were reports underwriters had, were sliding below the ipo price. >> today facebook users had a mixed reaction to its lukewarm start. >> it is just a part of our life and i don't see it ass a threat. >> it is a great tool for some stuff you want to do but i just don't think it will be around as long as people think it will be. >> from now on facebook may be just another nasdaq tech stock but with a market cap of $100 billion it is cheerily not just another company. >> susan pratt, "n.b.r.", new york. >> i am diane eastabrook in chicago, still ahead world leaders and protests descend on the windy city for the nato summit. >> made

>> still a record breaker today with the facebook ipo, it was the first us public company to go public with a market value of more than $100 billion. >> more on facebook with tom forte, technology analyst at telsey advisory group with us from new york. tom, are you in the camp that this was a disappointing debut for facebook today? >> when you look at the performance of the stock after its first trade, and perhaps even including its first trade, it certainly doesn't live up to my own expectations, so in one regard you can say that they did a great job of maximizing value for the company with a $38 stock price, but as far as one day of trading goes i think it is a bit of a disappointment. >> tough to judge valuation in one day, but maximized value for the company, want future value for shareholders on day one? is there much central left to be

had say in the next six weeks or so? >> see i think that is the good news out of today's activity if you look, we are project ago 12 month price target of 48 to $50 so i think basically with the stock trading close to its offer price, you know, at closing, this is essentially giving investors another opportunity to buy the stock at the ipo price. >> so i think that there is actually good news in today's activity and it is that a lot of investors are going to have an opportunity to pick up facebook and we think make good money over the next 12 months. >> we saw heavy volume of trading, no surprise when 500 million shares, where did the money come to buy facebook after the first print today? >> so i think that what you saw after the, you know, the first trade was likely a combination of individual investors and institutional investors looking for an opportunity to become investors in facebook. when i think about-face book with 901 million active users i think about a lot of individual investors who are looking for an

opportunity to buy these shares and, you know, hold on to them for a long time so i think it is a combination of institutional investors and individual investors looking for an opportunity to get a piece of the facebook. >> now we did see some money come out of other social media stocks today, sink ga, group on, were all .. weaker across-the-board. do you think they soaked up capital that came out of there? >> i think it is one became way to look at it. >> i argue if you go back to the initial filing of the prospectus through recently, facebook has actually cast a bit of a halo effect on the other social networking type recently minted public companies, so i would argue that generally speaking, facebook coming to the market has been a positive factor for them, but as far as today's performance, i think what you saw was a weak performance across the sector for some of the newer internet companies which i think was a direct

reflection of facebook's one day trading not performing as well as hoped. >> how about disclosures here, tom? do you have shares yourself with facebook. >> i do not. >> tom forte along with us talking facebook, with telsey advisory group. >> euphoria over facebook, fear about global issues hung over the market today, investors still anxious about greek exiting from the euro stone, reportedly a growing number of depositors are withdrawing their money from greek banks, those reports and moody's downgraded 16 spanish banks, including banking giant banco santander weighed on stock markets around the world so it was a poor day for stocks in britain and france and that carried over here to wall street, the dow lost 73 and the sa pnld slipped ten points all three indexes posted their biggest weekly percentage declines of the year and tom will have lots more on that in market focus.

>> well, those concerns about greece and standing in the euro zone will be topic a at the g-8 summit this weekend, meeting at camp david, president obama and leaders from the world's biggest economies .. will try to prevent how to prevent greece from derailing the global economy, as sylvia hall reports, they will also be focused on helping the. >> president obama kicked off the g-8 weekend with a steed of hope for africa. >> announced an international alliance to promote food security there. >> 50 years ago africa was an exporter of food, there is no reason why africa should not be feeding itself. and exporting food again. there is no reason for that. >> the program begins in three countries, ghana, ethiopia and tandz any a, tanzania, all are looking for reforms in the private sector, they have offered up a total of $3 billion.

3 million come from dupont to help ethiopian farmers. >> the, its connection to new technology and how they integrate with the local farming community is an important part of it. >> over the long-term if the plan is successful it could help the growing global population. >> when you look at a global food economy that will have to double production to meet the needs of a population of 9 billion people by 24th, we know that africa is going to have to be a big part of that solution. >> private sector investment won't be enough, they hope public funds will keep coming to africa, but others say the continent is starting to pull itself out of poverty and extremities like these disrupt the market. >> we are going to continue to invest in aid and assistance, we are going to supplement that with investment and trade and partnership and technological cooperation so that we can really, once and for all, end widespread hunger. >> a pledge by the g-8 three years ago to aid in food

development in africa expires this year, with developing economies so sensitive to fluctuations in food prices, the u.s. wants it renewed and expanded by this private investment. sylvia hall, "n.b.r.", washington. >> in chicago, protests were already underway today ahead of the sunday beginning of the nato summit. demonstrators included the national nurses united union, the first of two protests scheduled this weekend, as nato leaders gather in chicago to discuss the war in afghanistan, and military resources between the u.s. and europe. but the summit also has become the latest magnet for economy pro economic protests. support the healthcare, like we support education in this country. and it is a right and never should have been connected with your job in the first place. >> wall street should pay for all of the things that they need, because we bailed them out to the tune of $13 trillion. >> you can't create an economy

by making cuts, things don't grow by cutting. >> eastabrook joins us now from chicago, diane we have seen protests at such global summits turned destructive in the past, what precautions have businesses taken in downtown chicago? >> i am standing on south street, the heart of chicago's financial district and i will tell you, it seems like a sunday morning down here, it is that empty. a lot of the banks, some of the bigger companies like boeing and aon requested employees work from home today, i talked to some doctor's offices too and actually closed today so it is very quiet here in chicago. >> you are just a block away from the board of trade and right near the federal reserve bank of chicago. the city received 19 million in federal grants, 37 million in commitments from private donors to help host this nato summit, is it going to be worth it? as quiet as the business district is today? >> that is kind of the big question, i a talked so some hotels a couple of days ago and asked them are you seeing a lot of reservations, a lot of people coming to town and a lot said

yeah reservations were okay but they have actually seen weekends where they had better reservations, better occupancy when some of the bigger trade shows were in town, interestingly, i talked to a restaurant a couple of hours ago that closed early, usually closes around 4:30, the manager said he was closing the doors at 1:30 because none of the business people were coming in for lunch, he said his receipts were only a quarter of what they typically would be on a friday. >> nato comes to town but maybe not the business. diane eastabrook in think with us tonight, thanks, diane. >>

>> as we wrap up our series the agriculture economy, we focus on a global leader in the food business, sysco, now, you might not know the name, but sysco supplies food products to thousands of restaurants in the u.s. and canada. two-third of its $40 billion in revenues comes from sales to restaurants, while hotels, schools and hospitals make up the rest. >> when i met with sysco ceo william delaney i asked him how much high food prices are impacting his business. >> well, they have impacted us a lot, susie, we experienced higher food prices for the last few years as much as six, seven percent it is a damper in terms of our customers in generating revenues when your costs are going up three and a half, five and a half, six percent for these restaurants and 35 percent of your cost structure let's say that is a big increase so you have to find a way to offset. >> the price for beef and grain have been surging. >> right. >> what to you see as your

forecast going forward? do you see prices coming down a bit or stable lieding or going forward? >> we think they will stabilize and hopefully come down a little bit. the beef prices have been high for a good while. you right the grains have been high and recently we have seen a lot of increase in in poultry. the inflation we have seen in our cost of product gulf of m five to six percent and we think it is coming down three to four percent, it is still going up so what i am saying it is going up, we hope, at a lower rate and that's what we are expecting to see but we don't know it will go down a lot lower than three, four percent. >> we keep hearing the economy is getting better, does this give you some leeway to pass along the higher costs to your customers? >> well i think any time people's mind-sets are more optimistic and more positive, it gives all of us an opportunity to grow our business and grow it better, so certainly if our customers are having success, that gives us more of an ability to price along with price increases that are necessary, a little bit faster and that's the balance we are trying to strike today. >> one area that a prices are coming down is gasoline, are lower gasoline prices helping

your profit margin? >> it helps us out some, it is not a huge part of our cost structure that is meaningful, the biggest positive about fuel prices coming down is the fact it gets the consumer to travel more and go out to eat more and drive a little further on summer vacation and fly a little more that is good for our business because a good part of our business is outside of the restaurant segment, we do a lot of travel and leisure so anything that gets the consumer to get out and drive their car is generally good for sysco. >> are you seeing people eating more of their meals outside of the home? you are a huge supplier to restaurants. >> right. >> is that business picking up? >> it is picking up very modestly, our outlook for growth in our industry going forward is pretty n modest, flat to maybe p one percent is what the industry experts say, and our goal is within that are to continue to do what we have done historically, which is grow twice that rate. >> so are you interested in going international? there is so much demand in places like china for beef and poultry. is that an area you are interested in? >> well we are interested in whatever our customers are

interested in, so our focus today is really on our core customers and our business is virtually all in north america, in particular, the u.s. and canada, but we do see more of our customers, in particular, the chains moving into these other markets that you referenced, whether it be europe or the mideast and beyond, so we have an export cane and a little company over in ireland and we certainly are building relationships with folks overseas, so medium to long-term we would love for sysco to grow into a more global company. >> .. >> more news on the social media front. a victory today for the supporters of the do not track -- do not track initiative,

twitter says it will stop collecting information about people who use their site. now, it is a landmark move, because twitter is the first major social media site to honor the policy. the federal trade commission is also a big supporter, but advertisers are concerned about how this will affect collecting information about users. twitter says if you don't want them to track your information, choose the opt out option in your web browser. >> well, tom, people were opting out of facebook, and it didn't come through the way everybody was expecting, it was supposed to be a victory lap but next week i think we will still be covering this and watching to see what happens. the story is just beginning. >> yes. maybe not a big pop the first day of trade but a successful stock sale certainly for the initial shareholders of facebook and raised a lot of money and clearly was a big focus of the market, otherwise, it was a major down day, the stock independent cease seeing selling pressure, the dow industrials experiencing the longest losing streak since 1974, down 12 out

of the last 13 sessions sheer the s and p 500 it struggled to stay positive this morning and finally succumbed to the selling pressure and civicking in the, sinking in the closing bell. >> trade volume, is usually the case in the down days picking up, 1.2 billion on the big board and 2.7 billion shares trading on the nasdaq and the friday capped off the worst week for the year for the major independent cease, the dow losing three and a half percent over the past five sessions, the nasdaq shedding 3.5 percent, s&p down 433 percent compared to last friday. >> weakness today came really from two key sectors for growth, as well as a traditional area for refuge for investors, the technology, financial sectors, the growth areas they fell by at least one percent, facebook effect may have been partly to blame for the financial weakness more on that in a moment, the defensive healthcare sector not finding any buyers and falling. there was plenty of anticipation around facebook, the exchange

upon which it trades came under severe criticism for a glitch that delayed some trade confirmations as susan the reported earlier, the nasdaq, took a hit down almost four and a half percent making it the biggest lose in other words the financial sector, it is nasdaq's lowest share price since september. >> auto desk lost almost three percent, investors sold after its second quarter forecast was slightly less than anticipated. mean time, business software maker salesforce.com and yahoo fought against the weak tech sector ending higher, autodesk and how about yahoo rebounding about four percent, it is finishing up a big chunk of ownership of the chinese search engine alibaba, now shoe socks, shoe socks were on the right path today, warm wish held quarterly sales as better job of managing how many shoes are on the shelves is expected to help spring and summer sales. we will begin with footlocker at the bell this stock had a spring

in its step at almost eight percent, earnings were stronger than anticipated, while the european same-store sales slipped they weren't as bad as feared. then how about brown shoes? this is a company behind famous footwear, dr. scholl's and other brands, jumping 25 percent after it raised the outlook for the year. the drop in inventory is a healthy sign the company can protect its profit margin. >> winnebago may be going private in $321 billion deal that's the offer on the table, shareholders due to get $11 per share, there is plenty of skepticism about the deal with the stock closing below that sellout price the company says it does not have enough details to call it a credible offer that came in from private equity first north street capital. >> our exchange traded fund market flash here are lower, the financial nasdaq 100, and emerging funds all falling more than one percent.

that is tonight's market focus. >> coming up next week on "n.b.r.", a week long series on american -- we look at businesses ready to train and hire veterans for their next mission, the u.s. job market. now that the iraq war is over and the u.s. military involvement in afghanistan is drawing to a close that is coming up. >> the spring swoon in stocks may have you worried but our friday market monitor has four reasons stocks could reignite orally, james paulsen back with

us, chief strategist from minneapolis, jim, you think there is a stronger than expected u.s. economy here. what evidence do you have? >> well, i think people are thinking we are growing around two and a quarter percent this year, tom and i think it will be more like three percent. i think we are doing better than you think, job creation in the first four months of this year is the strongest four months of this recovery, housing data has been the best we have seen in this recovery, auto sales are the strongest. bank loans have now been rising steadily and then on top of that we are adding some stimulus to this with record low major rates, and also now pump prices falling even though consumer confidence is at its highest level i think we will be surprised this year, i also think the european worries which are a big headline risk this year are going to ease in the summer and fall, why do you think that? >> well, one thing we have learned with the european crisis since it first came on the scene in january of 2010 is that it certainly flares up and scares everybody, but then it tends to calm down. and i think this is going to

follow the same pattern we have a flowup with the elections in europe but i think as we move into the summer, it copies down, it copies down and that will occur with a rally in stock. >> you are point to a quiet rally for the s&p 500 approaching 1,500 we are a long away from that but that would put it close to all-time highs, do you think that would spark new buying if we are at highs? >> i think so. one of the consistent attitudes since this market began in march of 2009 has been, am i taking too much risk? am i exposed too much? how far could we paul? if we start talking about all new record highs in the stock market i think you will change the attitude among investors and asking am i missing out and do i have enough in the stock market that could bring more mutual fund flows, for example, and help put the market up higher. >> your final reason here is the stronger economies from merging, emerging markets we saw the soft patch in china and elsewhere and leads you to put money into the

emerging market etf, this is a risky play and we have seen a big move lower in this. >> we certainly have, up until last fall the emerging market officials were working hard to try to moderate their recoveries, they were all raising rates and restricting money supplies and they have been successful. that has hurt those stocks, mightily as the economies have slowed down but i think now most of the policy officials are working very hard to try to speed up the recoveries again by dropping interest rates and i think by the second half of this year we are going to see more definitive evidence that china and india and elsewhere are starting to pick up again. >> and right now, you have got a good opportunity to buy these stocks at very, very attractive valuations. >> we last saw you in december. you liked a couple of sectors back then, industrial and basic materials, do you still like them these days? >> i do. and i think that they are kind of under pressure for the same reason the emerging world is. fears of the global recovery, but i think if that improves in the second half of this year,

tom, you are going to see those industrial and base materials pick up here as well. >> you own awe all three we mentioned tonight? >> we do, yes. >> an optimist from the twin cities this friday, jim paulsen with capital management. >> today's stock sale of facebook is a reminder that innovation never stops what started in a harvard dorm room began trading today on the nasdaq. lou heckler has been thinking about the end of an era, and the technology that is bringing it to a close. i started thinking about on line encyclopedia britannia is going out of business after 200 years of business. we were a world book family when i grew up and there were many meals running to the playroom to get a volume off the shelf when my mom or dad said you better look that up. families still do that, someone in get their i-pad or smart phone or some other instrument

and look it up today on google or yahoo or binge. i grew up in pittsburgh and while andrew carnegie endowed that city with libraries none was close enough to home to walk. those rare and wonderful trips to the library were magical. when my son -- how is that magnificent stanford library? oh. he said, i don't really have to go there. from the computer in my room i can go to the library at harvard or oxford or anywhere. stanford was naturally a very well campus and now old hat, old school, and britanica goes high tech, world book not yet they are still offering a print edition but i will guess not for long. it is the end o of an era, but e quest for knowledge at the dinner table goes on, and that is a good thing. >> i allow heckler. >> that's it for us. have a great weekend, everybody everyone. >> go to npr.com, back here monday night. nightly business report is

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