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US indices started today's session higher
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Block inc under pressure from Hindenburg Research report
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Coinbase in the shadow of SEC proceedings
The start of today's session an Wall Street brings in stock indices reacting to yesterday's comments from Powell and Yellen, as well as today's BoE and SNB decisions on interest rate hikes. All investor attention today, however, is focused on the situation around individual companies, where a lot is happening. Two companies in particular are attracting attention, Block inc and Coinbase, which are both under huge downward pressure. Shortly after the opening of the US session, new home sales data will be released.
S&P 500 index categorised by sector and industry. Size indicates market capitalisation. Source: xStation5
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The US500 Index is gaining close to 0.9% at the start of today's session and is breaking out of support levels set by the confluence of the 50-, 100-, and 200-day exponential moving averages. Source: xStation 5
Company news:
Shares of Block Inc (SQ.US) are losing more than 20% early in today's session following a report by the media-savvy organisation Hindenburg Research, which claimed that the company created by Jack Dorsey is a fraud. The report added that, based on the knowledge of former employees of the company, between 40% and 75% of accounts handled by Block Inc are fraudulent. You can find the entire report here.
Block Inc (SQ.US) shares are starting today's session with a downward gap of more than 20% and are breaking below the December 2022 lows. Source: xStation 5
In an interview with the WSJ, CEO Charles Schwab (SCHW.US) assured that the institution is able to cope with a wave of customer withdrawals, and that the brokerage giant's continued operations are assured. Walt Bettinger, co-chairman and chief executive officer of Charles Schwab, commented that the company has sufficient liquidity, even in the event of a near total liquidation of the bank's deposits. This process would not involve the sale of any securities.
Consulting and IT giant Accenture (ACN.US) announced that it will cut around 19,000 jobs and lowered its annual revenue and profit forecasts. The stock is gaining nearly 3% early in the session.
Massive declines early in today's Wall Street session are being recorded by Coinbase (COIN.US) shares, which are under immense pressure from the SEC, which has threatened to sue and issued a notice of lawsuit. Potential enforcement action would be related to aspects of Coinbase's cash market, as well as its Earn, Prime and Wallet products, the company said. Wallet is losing nearly 16%.
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