Yahoo shares drop 6.4% after Alibaba plans to list in US
U.S. stocks indexes fluctuated in choppy trade on Wednesday, 07 May 2014 while selling of high-growth stocks in the technology sector capped gains in broader market.
The Dow Jones Industrial Average rose more than 100 points at session higher, by trimmed those gains to trade 78 points, or 0.4%, higher at 16,473.73. The Nasdaq Composite sold off, falling 46 points, or 1.1%, to 4,037.85, adding to steep losses from the previous session. The S&P 500 was 5 points higher, or 0.3% to 1,866.59.
Shares of Yahoo fell 6.4% after Chinese Internet heavyweight Alibaba Group Holding Ltd. filed plans to list shares in the U.S. Yahoo has a 24% stake in Alibaba, and its initial public offering is poised to be one of the biggest listings on record.
Whole Foods shares have tumbled 19.3% after the grocer reported disappointing results and issued cautious guidance.
Separately, the $24 bln 10-yr note auction saw some decent demand. The offering drew a high yield of 2.612% with a 2.63x bid-to-cover ratio that was about in-line with the prior 12-auction average of 2.645%.
The 10-yr note didn't react much after the auction, but it has held its ground today due in part to the struggles being experienced by the growth stocks and Fed Chair Yellen's acknowledgment that there is no set timetable for the timing of a first rate hike by the Federal Reserve.
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