Closing Bell: Coinbase Rallies on New Deal, Uber Slides, Visa Stumbles

On this episode of Stock Movers:

Listen for comprehensive cross-platform coverage of the US market close as heard on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Scarlet Fu, Alix Steel, Carol Massar and Tim Stenovec.

- Coinbase (COIN) inked a deal to have the world’s second-biggest stablecoin, USDC, used as collateral in US futures trading. The cryptocurrency exchange is also expanding its payment offerings, including integrating USDC on ecommerce merchant sites. Coinbase Derivatives is partnering with clearing house Nodal Clear to work with regulators on what it expects to be the first regulated use of USDC as collateral, according to an announcement on Coinbase’s website Wednesday. Circle Internet Group Inc., of which Coinbase owns a minority stake, is the issuer behind USDC. The stablecoin — essentially a digital asset designed to hold a steady value — has a $61.5 billion market capitalization, per tracker CoinMarketCap.com. Shares rallied on the news.

- Uber (UBER) shares fell as shares of Lyft after Alphabet's Waymo applied for a permit to test its robotaxis in New York City, underscoring its intent to operate in one of the largest ride-hailing markets in the US despite an absence of local regulations supporting commercially operated autonomous vehicles.The company has applied for a permit with the city’s Department of Transportation to operate its vehicles autonomously in Manhattan with a trained human specialist supervising behind the wheel, spokesperson Ethan Teicher said in a statement Wednesday.

- Visa (V) and Mastercard (MA) shares both fell amid fears of increased competition from stablecoins and what it could mean for the credit card industry. after White House crypto czar David Sacks told Bloomberg Television that stablecoin legislation would cause the asset class to grow and create demand for the US dollar

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.

Speaker 2 (00:09):
This is the closing bell on this stock mover's report.
The company's making moves at the close of US trading
with Carol Masser, Tim Stenobeck, Romain Bostik, and Scarlet Foo.

Speaker 1 (00:23):
Quick check on the S and P five hundred almost
and even split guys, two hundred and thirty six names
to the upside, Alex, We've got two hundred and sixty
one names losing ground today, six unchange.

Speaker 3 (00:32):
Yeah, you can kind of see that in the IMAP
function as well. It's sort of a mishmash of what's
up and what's down, but not know a lot of
movement either way. Rody's the worst performing sector right down
six tens and one percent. Tech the best performing sector,
but only up by about four tenths of one percent.
So super calm movement all across the board.

Speaker 2 (00:48):
Yeah, I love mishmash.

Speaker 3 (00:50):
It's an official it's an official technical term.

Speaker 1 (00:52):
Did you not know that I know it now It's
mish mash. Go on the terminal. All right, let's get
to some of the individual gainers. Coin number one gainer
in the S and P five hundred folks at BUS
I know I love it when I'm surprised.

Speaker 4 (01:05):
I know I was paying so so close attention to
Jay powellum us in all the real action.

Speaker 1 (01:08):
All right, Well, there was action in Coinbase today, up
sixteen percent in today's session, Billionaire Michael Novogratz coming out
saying that stable coin legislation will push traditional financiers toward cryptocurrencies.
You also had Coinbase introducing coinbase Payments, a stable coin
payment stack for commerce platforms. And you might remember yesterday,
JP Morgan came out saying it's launching a pilot for

(01:29):
a token called JPMD, which represents dollar deposits. It will
transfer a fixed amount to coin based Global on the
public block chain base. This stock is up about seventeen
percent yuniting, So I just feel like a lot of
momentum around that puppy. Marvel Technology, number one gainer in
the NASDAQ one hundred folks, up about seven percent today's session.
Analyst positive on the chipmaker following an event focused on AI.

(01:51):
At that event, Marvell raised its overall data center total
addressable market to ninety four billion dollars by twenty twenty
eight from seven five billion. This stock, though, is off
more than thirty percent year to date and one more
for you Go Go.

Speaker 2 (02:06):
I'm go.

Speaker 1 (02:08):
It's not just a dance from the sixties. Up about
fifteen percent today's session. You know Wi Fi while we're flying,
has that improved? That's a great point. Every time I fly,
I can never get Wi Fi anymore. I think it's
me but I.

Speaker 3 (02:21):
Feel like it definitely has improved.

Speaker 1 (02:23):
Don't think, I don't know.

Speaker 4 (02:24):
Depends on the air. W wow remain nameless.

Speaker 1 (02:27):
Yeah, we're going to be good today. Shares storing, though
on heavy volume, the company coming out saying it successfully
successfully completed its first end to end call using its
five G technology. William Blair coming out saying those developments
represent a significant milestone for Go Go's five G network.
Stock is up eighty percent year to date. Thirty percent
of the float though shorted, so investors kind of watching

(02:49):
very closely.

Speaker 4 (02:49):
Okay, Well, the small moves in the indexes really masked
some big moves taking place under the surface. I want
to start with wolf Speed down thirty percent today, the
chip maker shares plummeting. Bloomberg did report today that it
will be taken over by creditors, including Apollo Global Management,
under a proposal that would put it into bankruptcy to
slash billions of dollars in debt. Shareholders could though, actually

(03:13):
recover as much as five percent in this propost scenario.
This is as opposed to what typically happens during a
situation such as this, where they are wiped out completely
in bankruptcy. Uber shares also on the move lower today,
and this as a result of some Waimo news. We're excited. Well,
don't get too excited, because just because Waimo's will start

(03:34):
to be tested in New York with a human driver,
this is what drove shares of Uber lower today, doesn't
necessarily mean that we're going to be seeing these all
over and going to be able to take them anytime soon.

Speaker 3 (03:45):
Wait, so Carol's into this, I'll Carol loves it.

Speaker 4 (03:48):
I convinced her, my God, to get into one of
these things. She did it. Where were you in Arizona?

Speaker 1 (03:53):
I did an Arizona first. It was like evening to
the airport, closing my eyes. I'm totally comfortable. I've done
what several's. Oh, Alex, it's kind of like.

Speaker 4 (04:02):
I think you're the only one here. He hasn't done that.

Speaker 1 (04:04):
It almost feels like you get into a spa, there's
like this really easy, easy music. The car is immaculate,
there's nobody talking. You're one of those.

Speaker 2 (04:14):
People right now.

Speaker 4 (04:15):
You know what Carol feels when you know, somebody talks
to her next airplane.

Speaker 1 (04:18):
Right you get into the car and they're like hi Carol,
You're like hi, Okay, it's just it's pretty cool.

Speaker 4 (04:25):
Carol obviously not concerned about the you know, robot robot
overlords taking over. This is in New York, Yeah, this
is in New York. This is where they're going to
be testing it out, but only with a human driver
and behind the wheel. So with the human like in
midtown or where. I don't know, we'll see.

Speaker 1 (04:40):
I don't know.

Speaker 4 (04:41):
I think there are a lot of challenges to this
service happening like it happens in San Francisco, just due
to the congestion in New York, and there aren't necessarily
places to pull over legal places like break it to
San Francisco. You ain't got nothing on New York. Yeah,
when it comes to congestion, it's like easy easy there
all right. Way moos shares or me Uber shares down
one point six percent today, Let's move on to some

(05:03):
payments companies. MasterCard fell by five point four percent, but
Visa is what I want to highlight, down four point
nine percent. Both of these companies fell over worries about
the impact of stable coins on credit card issuers. Remember
we saw this on Friday, after that Wall Street Dromal
report that said that Amazon and Walmart were interested in
stable coins. We did hear David Sachs today telling Bloomberg

(05:25):
TV that stable coin legislation would cause the asset class
to grow and create demand and create demand for the
US dollar.

Speaker 3 (05:32):
I have an honorable mention. I'm gonna pluy a domain
on you. Walmarts now in its longest losing streak since
two thousand and four, let's take a moment. I mean
to be fair, it was on a huge winning streak.
So take that with a grain of salt. Bond market
look at that nothing, absolutely no movement there. You're looking
at the two year below that four percent level. You're
looking at the ten year around four point three eight percent.

(05:55):
There was a breaking headline of a few minutes ago
saying that foreign treasuries holdings held near a record high
in April. That was quite interesting. They dipped about thirty six,
they dipped thirty six billion dollars to nine trillion dollars.
But yet foreign holdings are still sticky for Treasury, so
that was of course a big risk in a big
worry for the long end of the market. So far,

(06:15):
so good.

Speaker 2 (06:17):
The stock moover's report from Bloomberg Radio. Check back with
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