DIRS.INFO The most relevant business & tech news

☆ Morning Bid: Bank angst persists, unnerves Europe
▼ + stars: | 2023-03-24 | by ( ) www.reuters.com time to read: +5 min

But banks boosted borrowing under the Fed's newly launched Bank Term Funding Program to $53.7 billion - almost 5 times its first outing the previous week. European bank stocks fell 3% early on Friday, with Deutsche Bank shares (DBKGn.DE) down for a third day - losing 5% amid rising market costs for insuring against the risk of default. European Central Bank President Christine Lagarde is due to attend Friday's European Union summit in Brussels and update leaders on the state of affairs in the financial system. Wider markets were lower in Asia and Europe and U.S. stock futures were in the red again ahead of the open. With less than a 50% chance of another Fed rate rise in this cycle now priced into the futures, almost 80 basis points of rate cuts are now seen by year-end.

☆ Premarket stocks: Americans are going all-in on cash. That could spell more trouble
▼ + stars: | 2023-03-24 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

The goal of a money market fund is to provide investors with a relatively stable investment option that offers higher returns than traditional savings. What’s happening: Since the Fed began to raise interest rates a year ago, the amount of money in money market funds has increased by roughly $400 billion. Goldman Sachs economists wrote in a note on Thursday that Americans could sell as much as $1.1 trillion in stocks this year and put that money into credit and money market assets instead. Money market funds are deeply interconnected with the wider financial system, and often face the same risks as banks. The Federal Deposit Insurance Corporation, a US government agency that insures deposits in banks and savings associations, does not insure cash invested in money market funds.

☆ Atlantic Equities downgrades Block on lack of clarity around Cash App after Hindenburg short
▼ + stars: | 2023-03-24 | by ( Samantha Subin | ) www.cnbc.com time to read: +2 min

Atlantic Equities is turning more cautious on shares of Block as it awaits more clarity on its Cash App product in the wake of Hindenburg Research's short position. Shares slumped 5% before the bell, building on a near 15% dive Thursday after Hindenburg Research revealed a short on Block, saying that its Cash App platform enables criminal activity, lacks strong compliance controls and uses predatory fees. Hindenburg also said Block inflates Cash App user metrics. SQ 1D mountain Block shares tumble Block responded to Hindenburg, saying that it plans to work with the Securities and Exchange Commission to explore legal action against the short seller. Looking ahead, Malde views illegal activity as the greatest risk for Cash App.

☆ Stocks making the biggest moves premarket: Deutsche Bank, Coinbase, Block, Marathon Oil and more
▼ + stars: | 2023-03-24 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +2 min

A Deutsche Bank AG flag flies outside the company's office on Wall Street in New York. Banks — Shares of U.S. banks fell as investors worried about the global banking system. First Republic Bank fell 3%, while Western Alliance , Zions Bancorporation and Fifth Third all lost more than 2%. Energy stocks — Energy names fell in in the premarket as oil prices slid, with investors worried about potential oversupply. Marathon Oil and Devon Energy fell about 3%.

☆ Cramer says it's really easy to hate short sellers, particularly if you own Block
▼ + stars: | 2023-03-24 | by ( Jim Cramer | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCramer says it's really easy to hate short sellers, particularly if you own BlockMad Money host Jim Cramer weighs in on short seller Hindenburg Research's recommendation that investors sell Block shares.

☆ Jim Cramer's top 10 things to watch in the stock market Friday: Bank mess, stocks slide, Activision deal
▼ + stars: | 2023-03-24 | by ( Jim Cramer | ) www.cnbc.com time to read: +4 min

Investors have been selling bank stocks overseas and in the U.S. off-and-on for two weeks since the failure of Silicon Valley Bank in California and later Signature Bank in New York. Any further limitation of TikTok in the U.S. would benefit Facebook-parent and Club stock Meta Platforms (META). As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.

☆ A key indicator says a recession is guaranteed in 2023 — and Bill Ackman, Nouriel Roubini, and others are warning of trouble ahead
▼ + stars: | 2023-03-24 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

From the central bank's latest rate hike to new developments in the ongoing bank crisis, a lot has happened in my absence. And all the while, Jerome Powell's favorite bond-market indicator is quietly telling us that a recession is all but guaranteed this year. Talk of basis points, yield spreads, and other market jargon is obscuring the key message here: Markets think a recession is guaranteed in 2023. How much credence as a recession signal do you give the bond market indicator? He said the current bank crisis isn't a redux of that era, or even of 2008.

☆ Twitter founder Jack Dorsey's net worth dropped by more than $500 million after US short seller Hindenburg targeted his payments company Block
▼ + stars: | 2023-03-24 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

Jack Dorsey's wealth tumbled after Hindenburg Research targeted his payments company Block, per Bloomberg. The short seller alleged Block misled investors "with inflated metrics"Block's share price tumbled as much as 22% on Thursday on Hindenburg's report. Block's share price tumbled as much as 22% on Hindenburg's report before closing 15% lower at $61.88 apiece on Thursday. It said Hindenburg's attacks are designed "solely to allow short sellers to profit from a declined stock price." In 2020, Hindenberg accused electric truck maker Nikola of fraud, which also sent its share price slumping.

Check out the companies making headlines in midday trading. GameStop -- The famed meme stock gained 2.5% in midday trading. The bank stock had been down about 14% after the bank's credit default swaps jumped without an apparent catalyst. Wells Fargo and JPMorgan — Shares of commercial bank giants were lower in midday trading, with Wells Fargo pulling back 2.3% while JPMorgan fell 2.2%. Activision Blizzard and Microsoft — Shares jumped 5% after the U.K. Competiton and Markets Authority dropped some of its concerns with the potential purchase of the company by Microsoft.

☆ Report claims 'criminal activity and fraud run rampant' on Cash App—what users need to know
▼ + stars: | 2023-03-24 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +1 min

A new report from Hindenburg Research, a short seller investment firm, released Thursday has accused Block — the company formerly known as Square, founded by Jack Dorsey — of allowing crime and fraud to "run rampant" on its peer-to-peer payment app, Cash App. The report alleged that Block inflated its customer growth, allowed fake accounts to thrive and dodged revenue regulations — an accusation that triggered a Securities Exchange Commission (SEC) investigation. Hindenburg claims it was able to open fake accounts on Cash App under names Donald Trump and Elon Musk. Block called the report "factually inaccurate" in a statement, and says it is complying with the SEC and exploring legal action against Hindenburg. It's worth noting last March, Block revealed it was the subject of a Consumer Financial Protection Bureau (CFPB) investigation over the way Cash App handles user complaints.

☆ Wall St ends higher as Yellen vows actions to safeguard deposits
▼ + stars: | 2023-03-23 | by ( Stephen Culp | ) www.reuters.com time to read: +3 min

"The market as a whole is telling you is there are a lot of different ways to interpret all the things people are saying." Interest rate hikes by central banks around the world have stressed the banking sector, which became manifest with the recent failures of SVB Financial Group (SIVB.O) and Signature Bank (SBNY.O). Comments from the Bank of England that inflation will probably quickly fade also helped fuel hopes of light at the end of the central bank tightening tunnel. "Every central bank that was on path to raise rates raised them," GLOBALT's Martin added. Shares of First Republic Bank (FRC.N) dropped in volatile trading in the wake of Yellen's testimony.

☆ Wall Street rallies on hopes of Fed policy pause
▼ + stars: | 2023-03-23 | by ( Stephen Culp | ) www.reuters.com time to read: +4 min

"Today the market is bouncing back on what was a dovish Fed hike yesterday," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. "Powell did a good job sticking to the party line on inflation and continued to jawbone hawkish even though the hike leaned dovish." Comments from the Bank of England that inflation will probably quickly fade also helped fuel hopes of light at the end of the central bank tightening tunnel. Among the 11 sectors of the S&P 500, communication services (.SPLRCL) and tech (.SPLRCT) led the percentage gainers. The S&P 500 posted four new 52-week highs and 14 new lows; the Nasdaq Composite recorded 45 new highs and 197 new lows.

☆ Hindenburg takes aim at Dorsey's payments firm Block, shares plunge
▼ + stars: | 2023-03-23 | by ( Manya Saini | ) www.reuters.com time to read: +5 min

Block shares fell as much as 22% before paring losses and were last down 14% at $62.61 in afternoon trading. After reviewing the full report, Block said it was "designed to deceive and confuse investors". Hindenburg said that Block "obfuscates" how many individuals are on the Cash App platform by reporting misleading "transacting active" metrics filled with fake and duplicate accounts. The app had 51 million monthly transacting actives, a 16% year-over-year increase during December 2022, Block said in fourth-quarter earnings letter. "What I am really concerned about is the Cash App, accusations of fraud, multiple accounts, opening accounts and fake names.

☆ Short Seller Hindenburg Says Jack Dorsey’s Payments Company Inflates User Numbers
▼ + stars: | 2023-03-23 | by ( Peter Rudegeair | ) www.wsj.com time to read: 1 min

Hindenburg said Jack Dorsey, Block Inc.’s chief and co-founder, has amassed a $5 billion personal fortune by taking advantage of Cash App’s users. Shares of the payments company formerly known as Square fell more than 20% in early trading Thursday after a short seller questioned the company’s user numbers and accused it of predatory tactics. Hindenburg Research said a two-year investigation into Block Inc. found the company “obfuscates” its Cash App service’s true user numbers by reporting misleading metrics “filled with fake and duplicate accounts.” It also accused the company of taking advantage of the demographics it claims to serve—lower-income people and minorities—with “predatory loans and fees.”

Traders' bets are almost equally split between the Fed pausing its rate hikes in May and another 25 bps hike, according to CME Group's Fedwatch tool. Communication services (.SPLRCL) and information technology (.SPLRCT) led the gains among the S&P 500 sector indexes, all of which rose, except utilities (.SPLRCU). Bank of America (BAC.N) and UBS (UBS.N) now see the Fed funds rate target peaking at 5-5.25% in May compared to earlier forecasts of 5.25-5.5%. Advancing issues outnumbered decliners by a 3.62-to-1 ratio on the NYSE and 3.27-to-1 ratio on the Nasdaq. The S&P index recorded one new 52-week high and five new lows, while the Nasdaq recorded 17 new highs and 27 new lows.

☆ Hindenburg shorts Jack Dorsey's payments firm Block, shares plunge
▼ + stars: | 2023-03-23 | by ( ) www.reuters.com time to read: +2 min

[1/2] The logo of Cash App is seen at the main hall during the Bitcoin Conference 2022 in Miami Beach, Florida, U.S. April 6, 2022. REUTERS/Marco BelloMarch 23 (Reuters) - Hindenburg Research on Thursday disclosed short positions in Block Inc (SQ.N) and alleged that the Jack Dorsey-led payments firm overstated its user numbers and understated its customer acquisition costs. Shares of Block slid 20% to $57.85 in premarket trading following the report. Hindenburg added that Block "obfuscates" how many individuals are on the Cash App platform by reporting misleading "transacting active" metrics filled with fake and duplicate accounts. Founded in 2017 by Nathan Anderson, Hindenburg is a forensic financial research firm that analyses equity, credit and derivatives.

☆ Shares of Jack Dorsey’s Block Fall on Short-Seller Report
▼ + stars: | 2023-03-23 | by ( Peter Rudegeair | ) www.wsj.com time to read: 1 min

Hindenburg said Jack Dorsey, Block Inc.’s chief and co-founder, has amassed a $5 billion personal fortune by taking advantage of Cash App’s users. Shares of the payments company formerly known as Square fell 13% in early trading Thursday after a short seller questioned the company’s user numbers and accused it of predatory tactics. Hindenburg Research said a two-year investigation into Block Inc. found the company “obfuscates” its Cash App service’s true user numbers by reporting misleading metrics “filled with fake and duplicate accounts.” It also accused the company of taking advantage of the demographics it claims to serve—lower-income people and minorities—with “predatory loans and fees.”

☆ Watch CNBC's full interview on Hindenburg's allegations against Block with SVB MoffettNathanson's Lisa Ellis and Empire Financial's Herb Greenberg
▼ + stars: | 2023-03-23 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview on Hindenburg's allegations against Block with SVB MoffettNathanson's Lisa Ellis and Empire Financial's Herb GreenbergSVB MoffettNathanson's Lisa Ellis and Herb Greenberg of Empire Financial Research join 'Closing Bell: Overtime' to discuss Hindenburg Research's allegations that Block is engaged in fraud.

"Our 2-year investigation has concluded that Block has systematically taken advantage of the demographics it claims to be helping," the short seller said in its report. Up to 35% of Cash App's revenue is derived from interchange fees, Hindenburg alleged. But Block avoids that regulatory cap imposed on large financial institutions by routing the revenue through a small bank, Hindenburg alleged. The small-bank routing method is one employed by Block rival PayPal , the short seller claimed, and which prompted a Securities and Exchange Commission probe. Hindenburg took issue with Cash App's practices during the pandemic, when the government issued stimulus checks to qualified American adults.

☆ A prominent short-seller just released a bombshell report on payments darling Block. Here are the 4 biggest claims.
▼ + stars: | 2023-03-23 | by ( Carla Mozée | ) www.businessinsider.com time to read: +5 min

Hindenburg Research on Thursday released a scathing report about Block, saying it inflated metrics. The short-seller financial research firm led by Nathan Anderson said it has taken a short position on Block shares after its two-year probe. The firm also said it ordered and "promptly received Our Donald J. Trump Visa Cash App card in the mail." It saw multiple Cash App accounts bearing the name "Jack Dorsey" as well as dozens of "Elon Musk"' and "Donald Trump'" fake accounts as well. "The only payment provider mentioned in the indictment was Cash App, which was used to facilitate the fraudulent COVID relief payments," wrote Hindenburg.

☆ Block slides 20% after short-seller Hindenburg says 2-year investigation indicates the company has 'wildly overstated' genuine user counts
▼ + stars: | 2023-03-23 | by ( Carla Mozée | ) www.businessinsider.com time to read: +2 min

Block shares drop 20% on Thursday after Hindenburg Research said it's shorting the payments company. Hindenburg alleged Block "obfuscates" how many individuals are on its Cash App platform. Block shares dropped 19.5% to $58.51 as trading in Thursday's regular session got underway. Hindenburg said its two-year investigation into Block found the company "obfuscates" how many individuals are on its Cash App platform by reporting misleading "transacting active" metrics that are filled with fake and duplicate accounts. "Block can and should clarify to investors an estimate on how many unique people actually use Cash App," said Hindenburg, whose report in January targeted Indian conglomerate Adani Group.

☆ Top 10 things to watch in the stock market Thursday: Stocks bounce, Ford EVs, Apple
▼ + stars: | 2023-03-23 | by ( Jeff Marks | ) www.cnbc.com time to read: +5 min

Marathon Oil (MRO) and Club holding Pioneer Natural Resources (PXD) catch upgrades at Citi. Club holding Ford (F) unveiled its new financial reporting structure ahead of Thursday's teach-in event. Club holding Apple (AAPL) increasing its commitment to sports and content? Coty (COTY) added to Piper Sandler's top ideas in beauty after analysts performed a round of checks in stores in Chicago plus recent company updates. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

☆ Stocks making the biggest moves midday: Netflix, Block, Snap, KB Home and more
▼ + stars: | 2023-03-23 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

Check out the companies making the biggest moves midday:Netflix — The streaming giant's stock climbed 8.5% following a report from YipitData that said the company's gross additions in Canada have improved. Block — Shares plunged 14% after short seller Hindenburg Research announced its latest position in the stock. The firm alleges that Block facilitates fraud and described the company's internal systems as a "Wild West" approach to compliance. Meta Platforms , Snap — The social media stocks moved higher as TikTok CEO Shou Zi Chew testified before the House Energy and Commerce Committee. KB Home — Shares rallied 8.8% after the homebuilder's fiscal first-quarter earnings beat expectations.

☆ US stocks rise as fresh jobs data continues to show no sign of labor market weakness
▼ + stars: | 2023-03-23 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

US stocks edged higher on Thursday after weekly jobless claims data showed continued resilience in the US labor market. Jobless claims fell to 191,000 last week, below economist estimates of 197,000. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. Weekly jobless claims fell 1,000 from the prior week to 191,000, below consensus estimates of 197,000. The strength in the labor market continues even as high-profile tech companies like Amazon and Meta Platforms announce further steep job cuts.

☆ Short-seller Hindenburg targets Jack Dorsey’s Block
▼ + stars: | 2023-03-23 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +2 min

New York CNN —Shares of Block, the company behind Cash App, plunged by 20% Thursday morning after the release of a searing report from short-seller Hindenburg Research that accused Jack Dorsey’s company of allowing fraudulent accounts that obscure criminals involved in illegal or illicit activities, including the sex trafficking of minors. Hindenburg’s attack on Block comes two months after the short seller’s allegations against Adani Group erased billions of dollars from the Indian conglomerate’s balance sheets. In 2021, members of the “Cash App” gang were charged with distributing fentanyl, the report said. Hindenburg, meanwhile, has made a name for itself by publishing explosive reports about businesses and short-selling the stocks of the companies associated with them. Hindenburg has targeted nearly 30 companies since 2020, and on average their targets lost about 15% on the day the reports were released, according to Bloomberg calculations.

Search resuls for: "Hindenburg Research"

25 mentions found