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Alibaba picks NYSE; Rate jitters dent stocks

Thursday, June 26, 2014 - 01:58

Summary: Alibaba announces it will list what is likely to be one of the biggest tech stock market debuts on the New York Stock Exchange; Stocks dented as Fed President says rates hikes could start early 2015. Conway G. Gittens reports.

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Alibaba is going to the New York Stock Exchange. The e-commerce giant confirms that it will list its highly-anticipated stock offering on the Big Board. It will be the biggest of a Chinese company ever and one of the largest tech IPOs in history. This is a major blow to the Nasdaq and certainly dampens the celebration over the successful debut of GoPro. Shares of the free-style lifestyle camera maker surged over 30 percent in their Nasdaq debut. Bed Bath and Beyond, the worst performer in the S&P 500. Several analysts sliced their price targets for the stock one day after the home decor retailer gave a weak profit outlook. General Motors is planning to recall this year's model of the Chevy Cruze - its best selling car in North America- due to potential problems with the driver's side air bag. Alcoa is spending nearly $3 billion to buy an aerospace company as it shifts away from reliance on just aluminum sales. Shares of Alcoa rallied less than 3 percent by the end of the session. As for the rest of the market, Wall Street traded lower on comments from non-voting Federal Reserve member James Bullard. He believes the economy could be ready for a rate hike early next year. SOUNDBITE: ST. LOUIS FED PRESIDENT JAMES BULLARD (ENGLISH) SAYING: "We've actually made a lot of progress. Unemployment has come down a long way. We're not quite to where we need to be, but we are getting very close, and it may not be very long before we are right on to where we need to be and inflation, we were wondering about inflation, but now inflation is moving up, so we are going to be very close to where we need to be on inflation too. So we are going to be basically at goals. You look at the monetary policy side, we are still buying bonds, we haven't even ended the QE program, much less started the process of slowly getting back to normal." A measure of consumer inflation released on Thursday, coming in close to the Fed's two percent target. Meantime, his comments also spooked European investors, where stocks finished mostly lower.

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Alibaba picks NYSE; Rate jitters dent stocks

Thursday, June 26, 2014 - 01:58