The stock markets in the United Stated declined except the Dow Jones Industrial Average (DJIA), up by 0.26% today. The NASDAQ suffered a significant decline due to the weakness of the equities of internet and small-cap companies.

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In a telephone interview with Bloomberg, Mike Blakin, portfolio manager at William Blair Small Cap Growth Fund Class N (MUTF:WBSNX) commented, “A lot of these companies have good runs, and this is a part of health corrections.

On the other hand, Michael James, managing director at Wedbush Securities said, “Growth is being sold today with both hands, whether it’s nervousness over the Fed or in order to raise funds for the Alibaba allocation.” He added, f I’m going to get a million shares of Alibaba, I need to have money to buy that. If I need to sell five other stocks to raise that money, I will.”

Alibaba Group Holding Limited received a strong demand for its initial public offering, and it is planning to increase its offering price from $66 to just below $70 a share.

Meanwhile, investors are waiting for the whether the Federal Reserve would change its language regarding the interest rates. Last week, speculations strengthened that policy makers could raise the interest rates earlier than expected after the Department of Commerce reported that the retail sales grew in August. Other economic data also improved.

“All this manufacturing and production data has been decent while the employment data is where things have been soft. The question is, what the Fed thinks of it and whether this will soften them up a little bit,” said Michael Block, chief equity strategist at Rhino Trading Partners LLC.

U.S. Markets

• Dow Jones Industrial Average (DJIA)- 17,031.14 (+0.26%)
• S&P 500- 1,984.13 (-0.07%)
• NASDAQ- 4,518.90 (-1.07%)
• Russell 2000- 1,147.48 (-1.13%)

European Markets

• EURO STOXX 50 Price EUR- 3,231.70 (-0.10%)
• FTSE 100 Index- 6,804.21 (-0.04%)
• Deutsche Borse AG German Stock Index DAX- 9,659.13 (+0.09%)

Asia-Pacific Markets

• Nikkei 225- 15,948.29 (+0.25%)
• Hong Kong Hang Seng Index- 24,356.99 (-0.97%)
• Shanghai Shenzhen CSI 300 Index- 2,437.19 (-0.05%)

Stocks in Focus

Tesla Motors Inc (NASDAQ:TSLA) declined more than 9% to $253.86 per share after Morgan Stanley analyst Adam Jones, and his colleagues said it is too early for the stock to reach their target price and advised investors to consider several sobering factors. Wedbush also terminated its coverage on the stock due to the departure of its analyst.

The stock price of Microsoft Corporation (NASDAQ:MSFT) dropped nearly 1% to $46.24 per share after the company agreed to buy Mojang AB, the developer of the popular game Minecraft for $2.5 billion.

The shares of Molson Coors Brewing Company (NYSE:TAP) gained almost 6% to $76 per share driven by a report from Credit Suisse Group AG (ADR) (NYSE:CS) suggesting that it is the best fit for acquisition by SABMiller plc (LON:SAB). The report came after Heineken N.V. (AMS:HEIA) rejected SABMiller’s merger proposal.