May 6 - Summary: Alibaba files for $1 billion U.S. IPO; ''Frozen'' helps Disney glide into better-than-expected quarterly results; Twitter suffers beating as lock-up ends; AIG dampens financials with lower profits. Conway G. Gittens reports.
PLEASE NOTE: THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL E-commerce giant Alibaba officially filed to launch a $1 billion initial public offering in the U.S. The Chinese company is expanding into the U.S. and is already handling more transactions than Amazon and eBay combined. "Frozen" brought in the dollars at the box office and that gave Walt Disney results a boost last quarter. The Dow component easily beat sales and profit forecasts on many fronts. Among other companies reporting: Fiat Chrysler. The Italian-American company posted a first quarter net loss and says it plans to list on the New York Stock Exchange by the end of the year. But the tech sector led stocks lower during the regular session. Blue chips dropped triple-digits, the S&P 500 fell just under a percent and the Nasdaq tumbled 1.4 percent. Twitter was behind that slump in tech stocks. Over 100 million shares traded hands in the busiest day the stock has even seen. Today was the first time early investors could sell shares after the November IPO. Mounting concerns about user growth and engagement levels has wiped out more than $18 billion of market value - that's half of the company's market cap. Robert Peck, analyst at the SunTrust Robinson Humphrey, has a 'hold' rating on Twitter. SOUNDBITE: ROBERT PECK, ANALYST, SUNTRUST ROBINSON HUMPHREY (ENGLISH) SPEAKING: "The reason why we like the stock here is that we think it's one of the platforms of the Internet going forward. It owns the whole communication or broadcast mechanism right now for the Internet, right, so that's number one. But number two, when the valuation ran too far, we just thought it was a little too expensive. Having the recent pullback makes it a little more interesting." Twitter shares settled at a post-IPO low. American International Group dragged the financial sector lower one-day after posting a fall in quarterly profit. AIG was hit by higher disaster losses in its core property and casualty insurance business. Shares fell more than 4 percent. Office Depot raised its full-year operating profit forecast and said it would close at least 400 stores in the United States over two years. That sent the stock up 16 percent. And in economic news, the U.S. trade deficit narrowed in March on rebounding exports, but the improvement was probably not enough to bump up that 0.1 percent first-quarter growth rate for the U.S. economy. European stocks ended the day lower across the board.