- Associated Press - Thursday, May 8, 2014

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As Alibaba prepares for IPO, tech stocks retreat

NEW YORK (AP) - It’s a tough time for a tech debut.

For two years, investors bid up biotechnology and internet companies, enticed by their strong growth prospects in an otherwise weak economy. But they have sold off those stocks since late February, realizing they can find better value elsewhere.

Roughly $149 million has been pulled out of science & technology funds the last two months, according to mutual fund data provider Lipper. Over the same period, about $5.2 billion has flowed into value-focused mutual and exchange-traded funds.

Into this brutal environment comes Alibaba, a company that propelled the rise of online shopping in China and is now preparing an initial public offering that could become the biggest in U.S. history.

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GM recalls challenge company, frustrate customers

DETROIT (AP) - Nine million parts.

That’s what General Motors needs to repair millions of cars it has recalled since Feb. 7. With ignition switches, power steering motors and other parts slowly arriving at dealers, frustrated drivers face waits of weeks or months, some while driving cars they fear are unsafe.

Any recall can present challenges for automakers and customers. But experts say eight simultaneous recalls covering 7 million vehicles is too much for any organization to handle quickly, even one as big as GM.

GM says it will take six months to make and distribute all the parts for the largest recall: 2.6 million cars with faulty ignition switches. There’s no estimate on when the other recalls will be finished.

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Health insurers just say no to marijuana coverage

Patients who use medical marijuana may take an unwanted hit: Insurers don’t cover the treatment, which can cost as much as $1,000 a month.

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