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Alibaba Rebuts Claims of Weak Demand; Stocks Slip Ahead of Fed

Alibaba (BABA) shares were lower in midday trading Monday after financial magazine 'Barron's' warned shares could fall more than 50% on slowing demand and increased competition in China.

Alibaba (BABA) shares were lower in midday trading Monday after financial magazine 'Barron's' warned shares could fall more than 50% on slowing demand and increased competition in China. However, Alibaba has hit back at those claims, arguing that demand will remain robust as its target markets are more affluent and likely to weather a slowdown. Stocks bounced off session lows, though remained in the red, as investors showed their nerves ahead of the two-day Federal Reserve meeting on Wednesday. Members could decide upon their first interest rate hike in nearly a decade. Chico's (CHS) climbed on reports it was considering a sale after being approached by private-equity firm Sycamore Partners.