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Kathy Wood goes on a Coinbase buying spree as Wall Street roils

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(Bloomberg) — Wall Street’s waning conviction at Coinbase Global Inc. Much to deter Cathy Wood. Instead, it was acquiring shares of a struggling cryptocurrency exchange in the wake of the collapse of Sam Bankman-Fried’s FTX.

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Wood’s Ark Investment Management funds have purchased more than 1.3 million shares of Coinbase since the beginning of November, worth about $56 million based on Monday’s trading price, according to data compiled by Bloomberg. The shopping spree, which began as FTX’s demise began, boosted Ark’s total holdings by about 19% to about 8.4 million shares. This equates to about 4.7% of the total outstanding shares of Coinbase.

Ark Funds also added to its stakes in other cryptocurrency-related assets, namely Grayscale Bitcoin Trust and shares of crypto bank Silvergate Capital Corp. in recent weeks. Wood’s increased buying has rewarded broad crypto selling this year, including tranches in tokens like Bitcoin and Ether.

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Coinbase initially rebounded in the days following Ark’s first purchase on November 8, in large part because lower-than-expected US inflation data sent risk assets higher globally. However, that rally was short-lived for the cryptocurrency exchange, as its share price has fallen for four straight days, including an 8.9% drop on Monday to close at a record low.

The majority of Ark’s Coinbase holdings are from the flagship ARK Innovation ETF which holds nearly 6 million shares weighing about 3.6%, the fund’s 13th largest. While the ARK Next Generation Internet ETF and ARK Fintech Innovation ETF each own just over 1 million shares, Coinbase’s weighting in the two funds is much higher at 5.4% and 6.3%, respectively, according to data on the Ark website.

Ark’s renewed interest in Coinbase stands in stark contrast to the sentiment emanating from Wall Street for the better part of the past six months. Analysts from companies including Bank of America Corp. and Daiwa Securities Group Inc. rating the stock this month, leaving it with just 14 equivalent Buy analysts, the lowest number since August 2021.

Read more: The collapse of FTX shakes Wall Street’s conviction in Coinbase

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In other moves, ARK Next Generation Internet has bought more than 450,000 shares of Grayscale Bitcoin Trust since the start of last week, as the discount to the value of the underlying cryptocurrency continues to widen. Last week, Ark Fintech Innovation bought more than 200,000 shares of crypto bank Silvergate Capital Corp.

Coinbase and Silvergate Capital have each shed more than 80% of their value this year. These losses are deeper than those suffered by the two largest cryptocurrency companies in the world – their prices fell by more than 65% in 2022 as the decline accelerated this month in the wake of the collapse of FTX.

The Coinshares Block Index, which tracks 45 global stocks with varying exposure to the cryptocurrency sector, was little changed on Tuesday after falling 2.5% in the previous session.

(Data updates on Grayscale and Silvergate buys, Coinshares Block Index performance)

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Saudi Arabia signs Huawei agreement, deepening ties with China on Xi’s visit by Reuters

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© Reuters. Chinese President Xi Jinping arrives in Riyadh, Saudi Arabia, December 7, 2022. Saudi Press Agency/Handout via Reuters

By Aziz El Yacoubi and Eduardo Baptista

RIYADH (Reuters) – Saudi Arabia and China offered deep ties with a series of strategic deals on Thursday during a visit by President Xi Jinping, including one with tech giant Huawei, whose growing incursion into the Gulf region has raised US security concerns.

King Salman signed a “comprehensive strategic partnership agreement” with Xi, which has received a warm welcome in a country that has forged new global partnerships outside the West.

Xi’s car was escorted to the king’s palace by members of the Saudi Royal Guard riding Arabian horses and carrying the Chinese and Saudi flags, and he later attended a welcome banquet.

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The Chinese leader held talks with Crown Prince Mohammed bin Salman, the de facto ruler of the oil giant, who greeted him with a warm smile. Xi ushered in a “new era” in Arab relations.

The offer stood in stark contrast to the quiet welcome given in July to US President Joe Biden, with whom relations have been strained by Saudi energy policy and the 2018 killing of Jamal Khashoggi that overshadowed the embarrassing visit.

The United States, which has warily watched China’s growing influence and its relations with Riyadh at rock bottom, said Xi’s trip is an example of Chinese attempts to exert influence around the world and will not change US policy toward the Middle East.

A memorandum was agreed with the Chinese company, Huawei Technologies, regarding cloud computing and building high-tech complexes in Saudi cities, despite the US discomfort with Gulf allies over potential security risks in using the Chinese company’s technology. Huawei has participated in building 5G networks in most of the Gulf countries despite the concerns of the United States.

Prince Mohammed, who fists instead of shaking hands with Biden in July, returned to the world stage after Khashoggi’s killing and has been defiant in the face of American anger over oil supplies and pressure from Washington to help isolate Russia.

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In a further polishing of his international credentials, Saudi Arabia and the United Arab Emirates said on Thursday that the emir and the Emirati president had led a joint mediation effort to secure the release of American basketball star Brittney Griner in a prisoner exchange deal with Russia.

In an opinion piece published in Saudi media, Xi said he was on a “pioneering journey” to “open a new era of China’s relations with the Arab world, the Arab Gulf states and Saudi Arabia.”

Xi added that China and Arab countries “will continue to raise the banner of non-interference in internal affairs.”

China’s state broadcaster CCTV said that sentiment was echoed by the crown prince, who said his country opposed any “interference in China’s internal affairs in the name of human rights”.

Xi, who is set to meet other Gulf oil producers and attend a broader meeting of Arab leaders on Friday, said China will work to make those summits “landmark events in the history of China-Arab relations,” and that Beijing regards Riyadh as “an important force in the multipolar world.” .

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Saudi Arabia and other Gulf states such as the United Arab Emirates have said that they will not pick sides among the world powers and that they are diversifying partners to serve national economic and security interests.

“reliable partner”

China, the world’s largest energy consumer, is a major trading partner of the Gulf states, and bilateral ties have expanded as the region pushes for economic diversification, raising US concerns about China’s participation in sensitive Gulf infrastructure.

The Saudi energy minister said on Wednesday that Riyadh will remain a “reliable and reliable” energy partner of Beijing and that the two countries will enhance cooperation in energy supply chains by setting up a regional hub in the kingdom for Chinese factories.

The Saudi Press Agency reported that Chinese and Saudi companies also signed 34 deals to invest in green energy, information technology, cloud services, transportation, construction and other sectors. It did not give figures, but said earlier that the two countries would conclude initial deals worth $30 billion.

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Tang Tianbo, a specialist on Middle East affairs at the China Institute of Contemporary International Relations — a think tank affiliated with the Chinese government — said the visit will lead to further expansion of energy cooperation.

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Bargain smokers give Big Tobacco a headache

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Cheaper cigarette brands are taking market share from big rivals like BAT and Altria as smokers look for ways to save cash.

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Dow Jones Higher on Unemployment Claims Following Inflation Data; Tesla Stock Skated Near 2022 Lows

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The Dow Jones Industrial Average rose Thursday morning as energy stocks and China exposed issues boosted early trade. The weekly jobless claims data released by the Labor Department proved to be higher than expected. Tesla stock fell nearly 3%. After the Bloomberg report The company has shortened shifts at its Shanghai plant and delayed new hires due to slowing demand in China’s auto market.




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The Labor Department said first-time jobless claims rose to 230,000 from 225,000 in the previous week. This was higher than economists’ estimate of 228,000. On Friday, wholesale inflation data is due along with the Producer Price Index, or PPI.

chevron (CVX) led the Dow Jones Industrial Average, up 2% as oil prices rebounded. It also announced a 25% increase in its capital spending for 2023. Exxon Mobil (xom) rose nearly 3% thanks to expanded earnings guidance, and after increasing its share repurchase program to $50 billion.

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while, Sina (CIEN) And the Jim Stop (GME) reported earnings before the market opened on Thursday. Ciena rose more than 16%. GME stock rose 1.5% after reporting a quarter-over-quarter decline in sales and a smaller loss compared to a year ago.

electric car giant Tesla (TSLA) fell 2.8% on Thursday. Technology pioneers at Dow Jones apple (AAPL) And the Microsoft (MSFT) was mixed after stock market today Open.

Celsius (CELH), IBD Leaderboard stock dexcom (DXCM), Kosovo Liberation Army (KLAC) And the Trane Technologies (TT) – as well as the names of the Dow Jones Larva (cat), chevron f Home Depot (HD) – among the top stocks to buy and watch.

Dexcom and Trane are the two IBD Leaderboard Stores. Caterpillar and Home Depot appeared In this week Arrows near the buy zone column. The percentile was recent IBD 50 shares to watch and a New America stock. Caterpillar was modern IBD stock today.


IBD MarketDiem’s ​​latest newsletter gives you actionable ideas for stocks, options and cryptocurrencies right in your inbox.

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Dow jones today: oil prices and treasury yields

After Thursday’s opening bell, the Dow Jones Industrial Average rose 0.3%, while the S&P 500 rose 0.1%. The tech-heavy Nasdaq Composite fell 0.15% in the morning’s move as Chinese stocks rallied to the top.

within Exchange traded fundsNasdaq 100 Invesco QQQ Trust Tracker (QQQ(losing 0.2% and the SPDR S&P 500 ETF)spy) gained 0.1% early Thursday.

The 10-year Treasury yield rose to 3.48% Thursday morning. On Wednesday, the 10-year Treasury yield fell to 3.4%, its lowest close since Sept. 12.

Meanwhile, US oil prices rebounded after four straight heavy losses, which saw WTI futures drop to a new low in 2022. WTI futures were trading up 2% to over Just under $74 a barrel early Thursday.

Stock market rise

On Wednesday, the Nasdaq Composite fell for the fourth consecutive session, while the S&P 500 extended its losing streak to five sessions. The Dow Jones Industrial Average rose slightly, snapping a three-day losing streak.

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Wed column big picture He commented, “Bull markets need expanded participation to survive. It hasn’t happened in the latest attempt to rally, at least not yet, so a more defensive stance may be needed. An inverted yield curve seems to support this view, predicting weaker economic conditions in 2023.”

Now is an important time to read IBD’s The Big Picture column Amidst the constant fluctuations in the stock market.


Five Dow Jones stocks to buy and watch now


Dow Jones stocks to buy and watch: Caterpillar, Home Depot, Chevron

Dow Jones member Caterpillar continues to move away from the 238 cup base Point purchaseAnd the to me IBD MarketSmith Pattern Recognition, following Wednesday’s 0.3% gain. CAT stock rose 0.8% Thursday.

CAT stock It shows 94 constants from a perfect 99 IBD composite classification, per IBD stock check.

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Energy giant Chevron rose 0.3%. Wednesday, is still directly below 182.50 buying points on the consolidation base. Stocks are trying to stop their current slide around the 50-day line. Shares of CVX rose 2% Thursday morning, as oil prices rebounded amid this week’s decline.

Home improvement retailer Home Depot has been wound up Wednesday About 5% below the 333.08 buy point of the cup base. The stock is about to add a handle to the base of the cup, which will lower the valid buy point to 329.77. HD shares were trading up 0.1% on Thursday.


4 growth stocks to watch in Cursstock market rally


Top stocks to buy and watch: Celsius, Dexcom, KLA, Trane

Energy drink maker Celsius triggered a 7%-8% loss from its 118.29 cup base buy point during Wednesday’s decline. While the stock may add a handle to the base of the cup, investors who bought during Friday’s breakout move should reduce their exposure. The stock rose 2.4% Thursday.

IBD Leaderboard Dexcom stock is close to entering a flat bottom at 123.46 and is about 4% away from that Point purchase After, after Wednesday 0.9% rise. Dexcom shares rose 3.5 percent early Thursday.

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The Chip KLA leader finished Wednesday just under 392.60 buy points, according to Chart analysis IBD MarketSmith. The main technical force is the stock’s strong RS line, which reached another new high during Wednesday’s move. KLA stock rose 0.6% on Thursday.

Trane Technologies ended Wednesday about 3% below 181.72 buy points in a cup with handle after rising 1.2% for the session. Stocks fell slightly Thursday morning.


Join IBD experts as they analyze the leading stocks of the current stock market rally on IBD Live


Tesla stock

Tesla stock It slid another 3.2% Wednesday, down sharply for the third straight session. Stocks are already down more than 10% this week.

Despite the losses, the stock is holding above its 52-week low, which was set in mid-November. Shares are down 57% from their 52-week high. Meanwhile, the stock seems to be seeing some resistance around the 200 price level, which is a key area to watch if the stock is able to make another bullish attempt. For now, the stock appears to be heading for a 2022 low.

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Shares fell nearly 3% Thursday morning to about 169.50 a share, just a few points off their 52-week low of 166.19.

Dow Jones leaders: Apple and Microsoft

within Dow Jones stockApple shares sold off 1.4% Wednesday, where it reached its lowest level recently and fell further below the 50-day line. The stock is up about 23% from its 52-week high. Apple stock was trading up 0.7% Thursday.

Microsoft fell 0.3%. Wednesday, as stocks continue to walk above the 50-day line. The software giant is still about 30% off its 52-week high. Shares of Microsoft fell 0.2% early Thursday.

Be sure to follow Scott Lehtonen on Twitter at @tweet Learn more about developing stocks and the Dow Jones Industrial Average.

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