Business

US stocks slip as Snapchat makes debut

Snap on the NYSE Image copyright Getty Images

Stocks on Wall Street slid at the close, with most of the focus on the firm behind Snapchat's trading debut.

Snap shares surged on Thursday, rising 44% to $24.48 from the flotation price of $17 per share.

At the close the Dow Jones slipped back from Wednesday's record high, dropping 112.58 points to 21,002.97.

The S&P 500 index fell 14.04 points to 2,381.92, while the Nasdaq Composite dropped 42.81 points to 5,861.22.

On Wednesday, Snapchat priced its shares at $17 each, above the expected range of $14-$16, which valued the company at $24bn.

Caterpillar shares, the biggest drag on the Dow, dropped 4.3% following news that federal officials had searched its Illinois facilities.

Caterpillar said the search may be related to an Internal Revenue Service investigation on profits earned by a Swiss subsidiary.

Shares in bookseller Barnes & Noble fell 8% after it reported a fall in third quarter profits and sales.

Profits at the retailer fell to $70.3m in the three months to 28 January, down from $80.3m a year earlier.

Comparable store sales fell 8.3%, which the company said was largely caused by fewer shoppers visiting its stores, the decline in popularity of colouring books, and the fact that sales last year were boosted by the best-selling album from Adele.