U.S. stocks drift lower midday following housing data, Alibaba debut
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E-mail Xinhua, September 23, 2014
U.S. stocks drifted lower at midday Monday following lower-than-expected U.S. housing data and the trading debut of China's e-commerce giant Alibaba on Wall Street.
U.S. existing homes sales slipped 1.8 percent in August after four consecutive months of gains, as investors paying in cash retreated from the market, the National Association of Realtors said Monday.
Alibaba shares fell 4.6 percent to trade at 89.57 U.S. dollars a piece at midday, after surging 38 percent on its first trading day at the New York Stock Exchange on Friday.
Alibaba shattered the record for the largest initial public offering (IPO) in history at 25 billion dollars, as underwriters reportedly exercised an option to sell additional shares granted by the company.
According to a regulatory filing with the U.S. Securities and Exchange Commission on Monday, Alibaba said total underwriting discounts and commissions to be paid to the underwriters will amount to 300.4 million dollars, which represents 1.2 percent of the total amount of the offering.
Moreover, investors' hopes of aggressive policy easing from China were dampened by a statement from China's Finance Minister Lou Jiwei, who said China's macro policy will focus on delivering comprehensive growth targets such as stable employment and inflation, and will not be distracted by changes in certain economic indicators.
At midday, the Dow fell 78.38 points, or 0.45 percent, to 17, 201.36. The S&P 500 dropped 17.21 points, or 0.86 percent, to 1, 993.19. The Nasdaq Composite Index dipped 61.67 points, or 1.35 percent, to 4,518.12.
Last Friday, the blue-chip Dow finished at a new record, as investors cheered Alibaba's trading debut and Scotland's vote to remain in the United Kingdom. Endite
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