Stocks were little changed at the open on Tuesday with the Dow trading just above the flatline. The S&P 500 was flat, while the Nasdaq dropped less than 0.1%.
DraftKings shares dropped as much as 11% this morning after Hindenburg Research announced it had taken a short position against the stock. In a report, Hindenburg said the betting group’s merger with Bulgaria-based SBTech has opened DraftKings up to exposure linked to black-market gaming and money laundering. “SBTech offered DraftKings a turnkey sports book, complete with user management, customer support and payment gateways,” Hindenburg wrote in the report. “It also looks to have exposed DraftKings shareholders to extensive black market dealings, money laundering, and organized crime.” Hindenburg also noted that its findings were “based on conversations with multiple former employees, a review of SEC & international filings, and inspection of back-end infrastructure at illicit international gaming websites.”
The U.S. and EU have resolved their Boeing-Airbus trade dispute. The 17-year long fight over aircraft subsidies has been ended with an agreement to suspend tariffs for five years stemming from the dispute. “This meeting has started with a breakthrough on aircraft,” said European Commission President Ursula von der Leyen. “This really opens a new chapter in our relationship because we move from litigation to cooperation on aircraft – after 17 years of dispute.” U.S. trade representative Katherine Tai said this morning, “Today’s announcement resolves a longstanding race irritant in the U.S.-Europe relationship. Instead of fighting with one of our closest allies, we are finally coming together against a common threat.”
GM is partnering with Wabtec to develop and commercialize electric locomotives using the automaker’s battery and fuel cell technologies. “Wabtec’s decision to deploy GM’s Ultium battery and Hydrotec hydrogen fuel cell systems further validates our advanced technology and demonstrates its versatility,” GM President Mark Reuss said in a statement. Wabtech CEO Rafael Santana said, “By working with GM on Ultium batter and Hydrotec hydrogen fuel-cell technologies, we can accelerate the rail industry’s path to decarbonization and pathway to zero-emission locomotives by leveraging these two important propulsion technologies.”
AstraZeneca‘s late-stage trial failed to provide evidence that its COVID-19 antibody therapy protected people who had contact with patients infected with the virus. The antibody cocktail therapy, AZD7442, was just 33% effective in reducing the risk of people developing symptoms compared with a placebo, a result that was not statistically significant. “While this trial did not meet the primary endpoint against symptomatic illness, we are encouraged by the protection seen in the PCR negative participants following treatment with AZD7442,” AstraZeneca Executive Vice President Mene Pangalos said in a statement.
And Best Buy said it will be selling luggage and outdoor girls to try to cash-in on the rebounding travel industry and the popularity of investing in the home. Best Buy will carry travel gear from TUMI and outdoor grills from brands like Traeger, Weber, and Ooni at select stores and online, and will soon also expand into outdoor furniture, bistro lighting, and more. Best Buy joins retailers like Lowe’s, Target, and Walmart in breaking into new categories and expanding online offerings. Lowe’s recently added outdoor toys like trampolines, small appliances like air fryers, and exercise equipment, while both Target and Walmart have begun using third-party marketplaces as a way to grow e-commerce sales.
Stocks We’re Watching
Marathon Digital Holdings Inc (NASDAQ: MARA): Marathon Digital announced today that it is set to join the Russell 2000 Index at the end of the 2021 Russell indices’ annual reconstitution, effective after the open on June 28. “Being added to the Russell 2000 Index demonstrates the immense progress we have made transforming Marathon over the past year,” Fred Thiel, Marathon’s CEO, said in a press release. “We expect our inclusion in the index to increase our visibility within the greater investment community, which will benefit both new and existing shareholders as we continue to build Marathon into one of the largest and most environmentally conscious Bitcoin miners in North America.”