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Alibaba boosts IPO; investors sell tech

Monday, September 15, 2014 - 02:27

Summary: Tech shares whacked as investors make room for Alibaba, which boosted its IPO after the market close; Apple says iPhone 6 pre-orders smash record; GM payout for deaths rise to 19; wild speculation about possible beer mergers. Conway G. Gittens reports.

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Alibaba isn't even public yet and it is already impacting markets. The Nasdaq spent most of the session down by at least one percent. The Dow and the S&P 500 finished higher. Alibaba took its roadshow to Hong Kong, but investors are focused on what happened in the U.S. The Chinese e-commerce company boosted the price of its IPO to between $66 and $68 a share, from the original range of $60 to $66. The number of shares offered remains the same, according to the amended filing. The market debut is still likely the world's biggest. Investors lightened up on tech like Facebook, Trip Advisor, Netflix, Amazon and Twitter to make room for the debut in their portfolio. Yahoo, Alibaba's big stakeholder gets a big payday from the IPO, but its shares faltered after hitting a 14-year high. Apple says it took more than four million pre-orders for the iPhone 6 and 6 Plus in the first 24 hours, declaring that a record. Scott Kessler of S&P Capital IQ has a "hold" rating on the stock. SOUNDBITE: SCOTT KESSLER, SECTOR HEAD, TECHNOLOGY EQUITY RESEARCH, S&P CAPITAL IQ: "Honestly, look this is pretty good news to see the significant pre-sales data and the stock is barely moving today. That says to us what we have been thinking is perhaps correct, which is a lot of the good news is priced into the stock at this point." 19 deaths will now be part of General Motors compensation plan, instead of the 13 previously linked to a faulty ignition switch. And there could be even more. Ken Feinberg, the highly-respected attorney overseeing the process, is still reviewing claims tied to the 2.6 million cars recalled for a glitch that caused cars to stall and airbags not to activate. Shares of General Motors climbing a full percent. On the data front, industrial production slipped for the first time in seven months in August as auto activity stalled.

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Alibaba boosts IPO; investors sell tech

Monday, September 15, 2014 - 02:27