Coffee With Greta: COIN In Trouble
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DJIA Futures: -25 (-0.1%)
SPX Futures: -3 (-0.1%)
NASDAQ Futures: -18 (-0.1%)
Good morning friends!
Futures are slipping as the recent market rally takes a breather.
Let’s get right to it!
SEC Sues Coinbase
Coinbase (COIN) shares are tumbling 15.6% ahead of the open after the SEC sued the crypto exchange in New York federal court this morning.
The regulator alleges that Coinbase is acting as an unregistered broker and exchange.
The SEC demanded the company be “permanently restrained and enjoined” from continuing to operate in that manner.
The case comes after the SEC sued rival crypto exchange Binance and its CEO on Monday.
The suit says Coinbase “has for years defied the regulatory structures and evaded the disclosure requirements” of U.S. securities law.
SEC chair Gary Gensler said, “We allege that Coinbase, despite being subject to the securities laws, commingled and unlawfully offered exchange, broker-dealer, and clearinghouse functions.”
Apple Dips After Big VR Reveal
Apple (AAPL) shares are down 0.4% in premarket trade after announcing a new virtual reality headset on Monday.
The stock hit a record high of $184.95 earlier in Monday’s session, before the highly-anticipated announcement at the Worldwide Developers Conference.
Apple’s unveiled its first virtual reality headset, the Apple Vision Pro, which costs $3500 and will be available starting in early 2024.
The company also announced iOS 17, watchOS 10, a new Macbook Air, a new Mac Pro with an its first in-house chip, and more.
Oil Prices Fall On Economic Fears
Oil prices are falling this morning as fresh fears about the economy overshadow the Saudi plan to cut output.
West Texas Intermediate crude futures are down 2.1% at $70.62 bbl while Brent crude futures are down 1.9% at $75.22 bbl.
Analysts said Saudi Arabia’s plan to cut its output by 1 million barrels per day is unlikely to cause a “sustainable price increase” amid weaker demand, stronger non-OPEC supply, and potential recessions across the globe.
The U.S. Energy Information Administration is set to release its short-term energy outlook this afternoon.
In Case You Missed It
- The services side of the U.S. economy slowed more than expected last month. The ISM services PMI fell to 50.3% in May from 51.9% in April. That marked a five-month low and was weaker than expectations for 51.8%. Business owners say ‘Everything seems to have leveled off. Not getting any worse, not getting any better.’