The Fed wrote that some broad equity price indices have climbed to all-time highs since the end of 2013, but also noted the valuation measures for the market in early July were "generally at levels not far above their historical averages."
Furthermore, the report warned that valuation metrics in some sectors could be significantly "stretched" despite a significant decrease in equity prices for some firms in early 2014. The Fed also noted ratios of prices to forward earnings for "smaller firms as well as social media and biotechnology firms" remain high "relative to historical norms."
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Facebook was down 1.90% to $66.61 at 11 a.m.
Separately, TheStreet Ratings team rates FACEBOOK INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FACEBOOK INC (FB) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation."