On Wednesday TheStreet will be watching for the results from Singles Day. Created by Alibaba Group Holding (BABA- Get Report) in 2009, the global shopping festival features more than 5 million products from over 40,000 merchants worldwide.
According to market research firm International Data Corp., Alibaba's sales are expected to reach $13.7 billion this year, a big increase from about $9 billion the year before.
Last year, rival JD.com (JD - Get Report) said it processed 14 million orders. As the competition between the two e-commerce companies heats up, the two have been aggressively promoting their online platforms.
On Monday, JD.com filed a complaint with a Chinese regulator, the State Administration of Industry and Commerce, accusing Alibaba of allegedly telling its merchants not to participate in JD.com's Singles Day promotions, the Wall Street Journal reported.
Alibaba denied these accusations and responded, "JD is panicking because they're losing. They simply can't match our customer and merchant experience and logistical scale because Alibaba wins with customers and merchants as we provide a superior experience for users on our platforms."
Alibaba reported strong initial results of Singles Day. In just 90 minutes, Alibaba said it generated $5 billion in gross merchandise volume.
Benjamin Stoto, director of research for CNBC's "Mad Money" said, "Unless the company really blows away the number, I don't think it's going to have a huge impact on its stock price. What I'm really looking for is just an indicator of the strength of the Chinese consumer."
He added that we'll also see Chinese retail sales figures on Wednesday. So we'll be watching for those, as well as year over year growth in Singles Day sales.
On the economic calendar, mortgage application numbers from the Mortgage Bankers Association are due out at 7 a.m. On the earnings front, Macy's (M - Get Report) is scheduled to report quarterly earnings.
Source:http://www.thestreet.com/story/13360483/1/what-to-watch-wednesday-alibaba-s-singles-day-sales.html
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