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Markets continue their slide over European debt worries

It's going to take more than Facebook's initial public offering to push the stock market higher.

Facebook shares rose 23 cents above their $38 offering price. It seemed like everything else fell.

The Dow Jones industrial average has been in a slump over the past two weeks as traders saw an escalating risk that Greece could leave the euro, causing more disruptions in markets. Remember the go-go days of May 1, 2012? The Dow was up 8.7 percent for the year. After Friday, it's up just 1.2 percent.

On Friday the Dow Jones industrial average dropped 73.11 points, to close at 12,369.38. It fell 3.5 percent for the week. The Dow has now declined on 12 of the last 13 trading days.

Nine of the 10 industry groups in the Standard & Poor's 500 index fell. Financials dropped the most, 1.1 percent.

Europe was the big worry for investors. The Fitch ratings agency dropped Greece to the lowest possible grade for a country not in default Thursday. Fitch said Greece's departure from the euro "would be probable" if elections next month do not reverse political trends in Greece, which have brought in politicians opposed to the terms of Europe's bailout.

Also, ratings agency Moody's downgraded 16 Spanish banks late Thursday, three days after downgrading Italy's, noting they are vulnerable to huge losses on government debt.

Representatives of the G-8 are meeting this weekend at Camp David, looking for assurances that leaders in Europe can contain damage if Greece leaves the euro.

"Despite all the attention on the Facebook IPO, I think there's still lots of underlying uncertainty surrounding this European debt situation," said Scott Wren, senior equity strategist for Wells Fargo Advisors in St. Louis. "This Greek situation isn't good. I think it's going to get worse before it gets better. Probably the same with Spain."

Borrowing costs for Italy rose slightly to 5.76 percent on Friday. The yield on Spain's 10-year bond fell slightly to 6.2 percent, a level that's still very high by historic standards.

European shares edged lower, following several days of big losses. Britain's FTSE 100 fell 0.1 percent, Germany's DAX lost 0.6 percent and France's CAC-40 fell 0.1 percent.

"The serious investors remain very concerned about the developments in Europe," said Jim Russell, regional investment director for US Bank Wealth Management in Cincinnati. "We think Facebook is a little bit of a sideshow. Great company. But maybe one that's valued on the high side of most people's tastes."

The Standard & Poor's 500 index fell 9.64 points to close at 1,295.22. The Nasdaq composite index fell 34.90 points, or 1.2 percent, to close at 2,778.79.

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