The jubilation surrounding the listing of Chinese e-commerce site Alibaba (NYSE:BABA), the biggest IPO ever has not been able to translate to major benchmarks because its domicile outside the US prevents it listing on one. US stock finished flat on Friday and look to be rolling over at the start of the week ironically on China slowdown fears.
Futures suggest the Dow Jones will open 40 points lower at 17,247 with the S&P 500 expected to open 8 points lower at 2,002 and the NASDAQ Composite 23 points lower at 4,077.
Alibaba (NYSE:BABA)’s underwriters are said to have increased the size of the IPO to a record $25bn, exceeding not only Visa Inc (NYSE:V) but also the Agricultural Bank Of China (HK:1288). After being sold at $68 shares eventually opened at $92, traded just shy of $100 before closing at $93.89.
There was clearly a lot of demand for one of the largest and hottest-growth stories in recent years. Founder Jack Ma’s concern of another ‘Facebook' (NASDAQ:FB)’ incident led to banker’s undervaluing the stock to avoid a sell-off on the first day, the result being a 38% boon to initial investors.
Notably the NASDAQ Composite fell the most while the tech sector was the weakest on the S&P 500 on Friday following a steep sell-off in Oracle Corporation (NYSE:ORCL) shares as investors had to make room for Alibaba Group Holdings Ltd (NYSE:BABA) in their portfolio. At its listing price Alibaba had a forward P/E through
In the dock today for economic data is existing home sales and speeches from Fed members Dudley, George and Kocherlakota perhaps trying to diffuse some strong statements from outspoken hawk Richard Fisher on Fox business TV on Friday
AutoZone Inc (NYSE:AZO) is expected to report earnings before the bell today of $11.26 per share on revenue of $3.07bn.
CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.