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Alibaba set for historic IPO; Stocks shake jobs worry

Friday, September 05, 2014 - 02:22

Summary: Chinese e-commerce company Alibaba reveals details for the biggest market debut ever; the S&P 500 hits new closing peak, looking past weakest job growth this year; Tesla shares fall, blame Elon Musk. Conway G. Gittens reports.

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The drumbeat towards Alibaba's record-setting tech market debut gets louder. The Chinese e-commerce company filed with U.S. regulators to price its initial public offering between $60 and $66 a share, that could raise more than $21 billion. At the high end, Alibaba could be worth nearly $163 billion right out of the gate. Founder Jack Ma, in the filing, says, "From the very beginning our founders have aspired to create a company founded by Chinese people but that belongs to the world." A roadshow is set to begin in New York on Monday, sources say. Yahoo, which holds a 22 percent stake in Alibaba , surged to a one percent gain after the filing. The S&P 500 closes at another record even though the August jobs report underwhelms. According to new data from the Labor Department, the jobs market hit a speed bump in August - with employers hiring the least amount of workers all year. Payroll gains of just 142,000 were way below the 225,000 Wall Street was expecting. The unemployment rate ticked down to 6.1 percent Looking at the full stock market reaction, stocks reversed early losses with some predicting slow job growth with slow the Fed's hand. Nariman Behravesh is Chief Economist at IHS. SOUNDBITE: NARIMAN BEHRAVESH, CHIEF ECONOMIST, IHS (ENGLISH) SAYING: "I suspect this particular report would strengthen the hand of the "doves" who want to hike rates later rather than sooner. So I think the Fed will probably delay a little bit. Best guess is that we are looking at the first rate hike somewhere say around September of 2015." The Dow and the Nasdaq finished the week close to where they began. Tesla CEO Elon Musk is widely quoted as telling the press on Thursday that Tesla's stock price is too pricey. Shares of the electric car maker down more than three percent on the day. Changes on the runway for Michael Kors. Two original majority shareholders are stepping down as board members and Sportwear Holdings, an original stakeholder, is selling off its entire stake. Kors was one of the biggest losers in the S&P 500. In Europe, Russia and Ukraine agreed to a ceasefire but investors were unsure if it was time to buy. Markets in Germany were up but down in France and the U.K.

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Alibaba set for historic IPO; Stocks shake jobs worry

Friday, September 05, 2014 - 02:22