Stocks edge higher; all eyes on Facebook

By msnbc.com news services

Stocks edged higher Friday, but major indexes were setting up to close their worst week of the year, while Facebook's debut could help lift battered investor sentiment.

The S&P has fallen 6.7 percent so far in May, and while volatility is expected to continue, some analysts were forecasting a near-term rebound.

Investors are bracing for Facebook's Wall Street debut after the world's No. 1 online social network raised about $16 billion in one of the biggest initial public offerings in U.S. history. Facebook priced its offering at $38 a share on Thursday, and shares are expected to begin trading under the FB symbol on Nasdaq at around 11 a.m. ET.

The large weekly decline in equities came amid uncertainty over a political crisis in Greece and whether that could trigger a default and possible exit from the euro zone.

Market participants were skittish even as a poll showed Greek voters are returning to the establishment parties that negotiated its bailout, offering some respite to European leaders who say a snap Greek election next month will decide whether it must quit the euro.

"Even good news is not enough to overcome the fear that there is going to be a dramatic slowdown in the world economy because of the European crisis," said Rick Meckler, president of investment firm LibertyView Capital Management in New York.

"Today, Facebook trading up would be a good start," he said, adding that a decline below the IPO price "could be a big negative for the market."

Reuters contributed to this report.

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