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Business

December 30, 2012

Top business story in '12: Sluggish global economy

(Continued)

5. FACEBOOK’s IPO

Years of anticipation led to Facebook’s initial public offering of stock — the hottest Internet IPO since Google’s in 2004. Many of the billion or so users of the world’s largest online social network craved a chance to buy in early. On the eve of its first trading day, Facebook’s market value was $104 billion — more than Amazon.com’s or McDonald’s at the time. Yet the IPO bombed. Its debut was marred by technical glitches with the Nasdaq exchange, allegations that a revenue gap wasn’t publicly disclosed and complaints that the IPO had been priced too high. Traders lost confidence fast. Within three months, Facebook’s stock had shed more than half its IPO value.

6. HOUSING RECOVERY

After a six-year slump that sent more than 4 million homes into foreclosure and shrank home prices about one-third nationwide, the U.S. housing market began to recover in mid-year. Modest job gains and record-low mortgage rates fueled demand. And the supply of available homes sank. By June, prices began rising. And builders broke ground on the most homes in four years. Housing boosted economic growth this year for the first time since 2005.

7. THE RETURN OF BIG OIL

Domestic crude oil production achieved its biggest one-year gain since 1951, driven by output in North Dakota and Texas. The United States is on pace to pass Saudi Arabia as the world’s top oil producer within two years. Credit goes to drilling improvements, like those that have fed a boom in domestic natural-gas production — horizontal drilling combined with hydraulic fracturing, or fracking. The new production helped cut natural gas prices to their lowest levels in more than a decade. Higher oil production helped reduce oil imports to 1992 levels and hand record profits to U.S. refiners. Gasoline prices declined in the last three months of the year. But for all of 2012, the average gallon was a record $3.63.

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