Market Closes Flat As Alibaba Group Holding Ltd Begins Life As A Publicly Traded Company
TD Ameritrade reported that it had more orders for shares of Alibaba prior to the stock’s open than orders for Facebook before it began trading for the first time.
- The Dow Jones Industrial Average rose 14.5 points, or 0.08 percent, to 17,281.
- The S&P 500 fell 0.9 points, or 0.04 percent, to 2,010.
- The Nasdaq Composite sold off 13.6 points, or 0.30 percent, to close at 4,580.
After pricing at $68 per share, Alibaba shares opened at $92.70. $92 served as an important base throughout the day as shares bounced off the level several times. The stock closed at $93.89, 38.1 percent higher than it priced.
Yahoo (NASDAQ: YHOO) was the second most closely watched stock Friday. Investors calculated the value of its stake in Alibaba and adjusted positions as shares of Yahoo moved higher and lower. Yahoo sold off sharply when Alibaba began trading, but gained some ground to end the day just 2.7 percent lower.
Shares of Red Hat (NYSE: RHT) were down 4.5 percent to $57.93. Red Hat reported better than expected second quarter results and raised its FY15 forecast.
Oracle (NYSE: ORCL) was down, falling 4.2 percent to $39.80 after the company reported downbeat fiscal first quarter results and unexpectedly shuffled its top management. Analysts at Deutsche Bank downgraded Oracle from Buy to Hold and lowered the target price from $48 to $42.
Gold futures continued lower Friday, falling below previous support around $1,220. Contracts were last trading at $1,217.60, a 0.8 percent decline. Silver futures were hit even harder, dropping 3.4 percent to $17.88.
Unlike precious metals, energy futures finished the week mixed. WTI was last down 0.6 percent while Brent gained 0.6 percent and natural gas gave up 1.7 percent.
Asian markets closed the week higher. The Shanghai index and Hong Kong’s Hang Seng rose 0.6 percent. Japan’s Nikkei added 1.6 percent.
European markets were mixed on the day. The Euro Stoxx index, which tracks 50 eurozone blue chips, gained 0.06 percent percent. London's FTSE rose 0.3 percent, and France's CAC fell 0.08 percent percent.
The U.S. dollar recovered Thursday’s losses to once again make a new 2014 high. The PowerShares ETF (NYSE: UUP), which tracks the value of the greenback versus a basket of foreign currencies, gained 0.5 percent to $22.55.
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