US markets look like opening broadly lower today after a more concentrated sell-off in the tech sector and big losses on the NASDAQ Composite yesterday. With only the producer price index on the data front, investors are positioning for the FOMC statement and press conference tomorrow and the Alibaba (NYSE:BABA) IPO on Friday.
Futures suggest the Dow 30 will open 30 points lower at 16,996 with the S&P 500 expected to open 3 points lower at 1,981 and the NASDAQ Composite 7 points lower at 4,022.
Shares in Facebook Inc (NASDAQ:FB), LinkedIn Corporation (NYSE:LNKD) and Netflix Inc (NASDAQ:NFLX) were all down sharply with even Apple Inc (NASDAQ:AAPL) rolling over despite reporting its best first-day pre-orders for an iPhone yet.
Alibaba (NYSE:BABA) have announced a price range of $66-$68 per share for its IPO to value the company in an around $22bn.
A good proportion of the capital being invested into the Alibaba IPO will be at the expense of other stocks in the market so ahead of Fed who’s Chair in the past has warned against stretched valuations in the tech and social media stocks, it made sense for investors to choose these names especially to make way for their allocation of shares in Alibaba.
Perhaps some of the technology sector selling can be abated with the release of Adobe Systems Incorporated (NASDAQ:ADBE) earnings after the close today. The company is expected to earn 26c per share on revenue of $1.02bn up 1.9% on the year.
Adobe’s turnaround to being a cloud-based operator and charging annual fees rather than a fixed purchase price is denting short term earnings but is happening quicker than most expected. The stock has been hovering around $70 and if earnings can surprise to the upside stands to make fresh highs continuing its three year bull run.
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