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Stocks break five- week winning streak

Friday, September 12, 2014 - 02:17

Summary: iPhone pre-order frenzy; Ebay's denies Google deal talk;Alibaba IPO order book closing early- sources; Energy shares pull stocks lower on new Russia sanctions. Bobbi Rebell reports.

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Biotech and energy shares pulling down the U.S. markets. All 10 S&P 500 sectors were lower. The Treasury Department announced new sanctions against Russia, aimed at the country's oil and defense industries, and limiting access to U.S. debt and equity markets. The indexes struggled- and all three posted losses in the first losing week in six weeks. Apple says it has received a record number of pre-orders for its new iPhone 6 and iPhone 6 plus. Pre-orders for September 19th sold out within hours. Shares of Apple were modestly higher. Anticipation for the Alibaba IPO - off the charts. The Chinese e-commerce company has enough orders to sell all the shares in the record-breaking offering, according to Reuters sources. It is expected to stop taking orders on Tuesday. Alibaba expected to price on the 18th, and start trading on the NYSE a day later. Alibaba part owner Yahoo shares were up. The company disclosed it was threatened by the U.S. government to turn over user data, and fought it in a legal case dating back to 2007. Ebay shares jumped early in Friday's session, but soon gave back most of those gains. The move was on rumors, later dismissed by the online retailer that Google was preparing to buy a slice of the company. There is also speculation that with the launch of Apple Pay, eBay could spin off its PayPal unit. Olive Garden owner Darden Restaurants is still losing money, and activist investors Starboard Value wants to see big changes. The hedge fund released a plan calling for replacing the entire 12-member board, and says it has identified over $300 million in cost savings- along with a way to boost alcohol sales and cut down on wait times. Darden has agreed to give them four seats- and recently sold its Red Lobster chain. Retail sales rose broadly in August, up 6-tenth of a percent as expected- and consumer sentiment hit a 14-month high. Both easing concerns about consumer spending ahead of next week's Fed meeting. Euro markets closed out the week with a mixed session- ahead of Scotland's independence referendum next week.

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Stocks break five- week winning streak

Friday, September 12, 2014 - 02:17