(Bloomberg) – The surge in Treasury yields that rekindled inflation concerns continues to cause problems for some of the stock market’s highest flying levels

Cathie Wood’s $ 28 billion ARK Innovation ETF (ticker ARKK) fell around 7% at one point in early trading on Tuesday, poised to rise to 5, 8% drop from the day before – his worst performance of the year

This came as long-term bond rates took another higher step, putting pressure on the case for sky-high valuations in the tech sector ARKK’s main stake, Tesla Inc, plunged 8% in pre-market after an 85% drop on Monday

Vaccine deployments and a likely federal spending bill have prompted Wall Street economists to raise their growth forecasts for 2021, fueling inflation fears and boosting Treasury yields This has made cases d valuation harder to justify for some of the top performers in the stock market after the S&P 500 rebounded 75% from pandemic lows

“ARKK’s main holdings are these exciting history companies, but most ETF names don’t have the established cash flow that FANG-type companies have,” said Michael Purves, founder and CEO of Tallbacken “This is the most speculative part of the market, and it shows signs of increasing vulnerability”

ARKK had huge runups in Tesla Inc and stay-at-home favorites such as Zoom Video Communications Inc and DocuSign Inc at a 148% return last year These deals started to deteriorate as the 10-year Treasury yield fell from 1% to 135% in weeks Zoom lost 56% on Monday in fourth consecutive decline, while DocuSign fell 82% Roku Inc, the fund’s second-largest holding, lost 63% Spotify Inc and Zillow Inc, both in the top 10, each fell by at least 4%

ARKK Still Up 46% in February Wood’s insight into picking winners last year fueled a surge in his company’s products As young people grow taller, some of her top picks may struggle to replicate outsized gains

“If this continues to decline it will raise great concern,” said Matt Maley, chief market strategist at Miller Tabak Co “Most of the assets they own are not very liquid Others tend to see one-way movements for a period of time Therefore, if a lot of people want to get out all at once, the situation might get uglier than normal “

A dip in the price of Bitcoin this week spilled over into Tesla shares, reducing the value of the electric car maker by more than $ 110 billion and some $ 20 billion of CEO Elon Musk’s net worth while criticizing exchange-traded funds holding the stock Bitcoin fell as much as 172% earlier in the day, setting a tone of weakness in the cryptocurrency markets as investors exited leveraged bets Tesla shares were down 73% to $ 662 3 as US open markets

Benzinga’s PreMarket Prep airs every morning from 8 a.m. to 9 a.m. ET During this hectic and highly informative hour, traders and investors alike tune in to get the top news of the day, the catalysts behind these moves and the ‘corresponding price action for the upcoming session Each day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick with producer Spencer Israel Last Thursday, Ark’s Cathie Wood bought shares of Palantir Technologies (NYSE: PLTR) and triggered a major rally on the topic on Friday It’s more or less the same in Monday’s session, as Wood adding to his stake in Vuzix Corp (NASDAQ: VUZI) has the significantly higher trading problem The Company: Vuzix Corp is a provider of smart glasses and augmented reality (AR) technologies and products for the consumer and enterprise markets The company’s products include personal displays and portable computing devices that provide users with a portable viewing experience high quality, provide solutions for mobility, portable screens and augmented reality Gone Nowhere Until December: Even though Vuzix has been traded as a public company since April 2010, it hadn’t gone anywhere until last December After ending November at $ 4.35, it nearly doubled in December to Reach $ 9.08 on the heels of its main product (smart glasses) by securing orders from several different companies The continued collaboration with Hippo Technologies has helped the company enter the medical / surgical field As a result, the problem is increased to $ 1694 in January and rolled back to end the month at $ 11.05 The rally continues in February: after already adding $ 2 to $ 1335 by Feb On February 11, the company had one of its 12 best performances, rally at $ 16.95 The catalyst being the company’s announcement of a strategic partnership with Rods & Cones, provider of a fully virtual surgical collaboration platform & Cones rods will add the M-series smart glasses as an additional video capture device to support optimized remote interactions between surgeons and experts Here Comes Cathie: Vuzix added just under a dollar in trading last week, hitting a new all-time high on Wednesday and an all-time high close on Friday at $ 1773 After his daily trading update closed, Wood revealed the purchase of 292,000 shares of the show during the session Friday After a much higher open today, it had a brief retreat to $ 19.56 and exploded to $ 24.44 As of 2:30 p.m. ET, profit-taking entered the problem, pushing it back into the mid-range of $ 22 Go Ahead: Monday’s price movement left a gap in the price from the high end of Friday’s range ($ 17.95) to the current low of $ 19.56 It would not be uncommon for the problem to return to this area, then consolidates and resumes its relentless rally in 2021 As always, improving the all-time highest closing price can be a good benchmark to follow in determining whether larger players can attempt to exit the problem. The Vuzix M300 Courtesy Photo Learn More About BenzingaClick Here For BenzingaPreMarket Prep Options Trading Stock of the Day: PalantirPreMarket Prep Stock of the Day: Chevron © 2021 Benzingacom Benzinga does not provide investment advice All rights reserved

Goodyear Tire & Rubber Co has announced that it will purchase Cooper Tire & Rubber Co for $ 2.8 billion in transactions to expand its portfolio in the high-margin light truck and SUV segments and strengthen its presence in North America and China Cooper shares, which have historically had stronger margins than Goodyear, jumped 20% in morning trading while Goodyear shares were up 34% The deal, announced on Monday, nearly doubles presence of Goodyear in China and expands distribution of Cooper replacement tires through Goodyear’s network of 2,500 retail stores nationwide

As of 1:15 pm EST, shares in NIO’s US custodian have fallen by about 55% of the Friday closing price Investors who have been in The Motley Fool for some time know that some stocks that seem expensive now often seem cheap in retrospect

Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) submitted its 13F-HR regulatory dossier to the US Securities and Exchange Commission (SEC) last week Its activity has included new positions in four stocks and the adding positions in six stocks, including AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY) Buffett just bought these two cheap stocks

On US Monday, the House of Representatives Budget Committee approved a law with $ 1 9 trillion in relief for novel coronaviruses, advancing President Joe Biden’s top priority towards a House Plenary vote on the passage slated for later this week Radical legislation aims to boost the US economy and implement Biden’s proposals to provide additional funds for COVID-19 vaccines and other medical equipment “We must act quickly to end this pandemic and to stem the suffering felt by so many millions of people, ”House of Commons Speaker Nancy Pelosi said in a statement

As the automotive world quickly moves towards electrification and governments ban the sale of internal combustion engine cars in the decades to come, it looks like the days of traditional cars are numbered In a recent interview with Evo magazine, Porsche VP of Motorsport and GT cars, Dr Frank Walliser, says synthetic fuels, also known as eFuels, can reduce carbon dioxide emissions from existing ICE cars by 85% Synthetic fuels are made by extracting hydrogen through renewable energy and capturing it in liquid form with carbon dioxide

Electric vehicle sensation Lucid Motors set the market on fire this week with a $ 24 billion blank check to be written in New York City, but it also raised concerns among some investors about a shorting in valuation of electric vehicle makers Shares of Churchill Capital IV Corp fell more than 40% on Tuesday, a day after agreeing to merge with Lucid, which makes luxury electric vehicles, but has yet to officially started producing cars or generating significant income The deal, valuing the merged company at a pro forma equity value of $ 24 billion, just a fraction of Elon Musk’s Tesla, but still the largest ever involving Special Purpose Acquisition Companies (SPACs)

(Bloomberg) – Aydem Holding AS, which underwent Turkey’s second debt restructuring, has applied for an initial public offering from its renewable power producerGaranti Yatirim, Is Yatirim, Turkiye Kalkinma ve Yatirim Bankasi AS and Yapi Kredi Yatirim to lead Aydem Yenilenebilir Enerji AS share offering, according to an emailed statement on Tuesday Halk Yatirim, Vakif Yatirim and Ziraat Yatirim will act as co-leaders There is no certainty that the IPO will take place, company said Aydem Holding joins wave of Turkish small and medium enterprises rushing forward to list on Borsa Istanbul and benefit from a flood of local investors Renowned company formerly Bereket Enerji restructured $ 5 billion in loans in 2019 If the IPO goes through, it could be the biggest sale of shares in Turkey since discount grocer Sok Marketler Ticaret AS raised $ 595 million in mid-2018 Aydem Holding expected to raise around $ 300 million in a bid that could value the unit up to $ 1.5 billion, according to people familiar with the plans late last year. not specified when or where the listing will take place It is already listed Goldman Sachs Group Inc, JPMorgan Chase & Co and Citigroup Inc as global leaders, people familiar with the plans said at the end of 2019 The company has 25 plants with a total capacity of 1,020 megawatts, said Idris Kupeli, CEO of Aydem, in the statement “In 2021, we are increasing hybrid power generation plants with the aim of diversifying our portfolio,” he said.For more articles like this, please visit us at BloombergSubscribe now to stay ahead with the most trusted source of business news © 2021 Bloomberg LP

While price volatility and inexperience are undoubtedly big risks for amateur traders, there is another danger that has been largely overlooked but just as terrible: criminal scams

Tesla shares were expected to dip red for the year on Tuesday, hit by a large selloff in high-tech stocks and the fall in bitcoin, in which the electric car maker recently invested $ 1.5 billion at 11 21:21 GMT, Tesla was down more than 6% in US pre-market offers after an 85% drop in the previous session The firm led by Elon Musk has seen a stellar turn since 2020, which it began at around $ 85 per share, before hitting the $ 900 mark in January 25

The US Treasury is expected to cut $ 1 trillion bank account at the Federal Reserve by $ 1 as government spending rises in the coming months – a move some analysts warn could further crush short-term money rates and flood financial markets with liquidity The Treasury recently announced that it would cut its extraordinarily high balance in the General Treasury Account (TGA) by half by April and bring it down to $ 500 billion by the end of June The US government manages most of its day-to-day operations through the TGA – managed by the New York Fed and into which tax revenue and the proceeds from the sale of Treasury debt flow

(Bloomberg) – World-class vaccination campaign brings UK markets back to life With one in three adults receiving at least one shot, Prime Minister Boris Johnson has just set a roadmap to lift the lockdown – giving multi-asset bulls new ammunition Among the biggest moves of the end: the pound rallied faster than any other major currency this year UK stocks generated outsized dollar gains Companies took advantage of a borrowing windfall that seems historic For many investors who fled in the wake of the 2016 Brexit vote, buying Britain today looks like a safer bet “We refrained from being overweight UK stocks for many years, as it has dragged on a lot in other regions since the Brexit referendum, ”said Michael Herzum, head of macroeconomic strategies at Union Investment to Francfo rt He now buys the FTSE 250 while selling the Eurostoxx index Here’s how the catch-up trade goes Monetary supremacy While the country has one of the fastest vaccination programs in the world, the British pound is one of the fastest growing exchanges hot spots in currency markets – gaining around 25% against the dollar this year Last week it broke the $ 1 40 threshold for the first time since 2018, while rising to its strongest against the euro from the depths of the pandemic panic last March Sterling rally may now have fresh legs, as UK- eurozone monetary path diverges “Rate markets begin to assess in future decoupling between ECB and BOE policy outlook , aided by the BOE which effectively killed market speculation on negative rates, “said Valentin Marinov, head of G-10 currency research at Credit Agricole. on the UK bond benchmark also rose faster than its European and US peers in 2021, as markets forecast a strong economic rebound and rising inflation expectations Another indicator of the business cycle signals more good news The country’s yield curve – measured by the difference between five and 30-year debt rates – is steepest since 2018, due to moves in longer maturities FTSE fans even UK stocks are finding more love these days Here For years billions have fled the Brexit-whipped market – dubbed the world’s least loved region Now negative bets are on the decline, according to this month’s Bank of America Corp poll A net 10% of respondents have a bearish positioning against 34% three months ago Sentiment is the next price As the FTSE 100 lags behind the Stoxx Europe 600 index this year, based on the dollar, the ind ice outperforms a large number of companion gauges in the regionThe rise in the UK currency led the FTSE 250, which is more exposed to the domestic market, to outperform the exporter-oriented FTSE 100 since the market bottomed in March 2020And there may be more juice left in the rally, with cheaper valuations and higher dividend yields than global peers Borrowing Bonanza All of this helps UK borrowers At 38%, the average yield on sterling bonds, a hint borrowing costs, near all-time lows This pushes UK pound corporate bond sales to fastest annual start in five years Supermarket chain Asda Group Ltd has shown market hospitality for UK risk This month, valuing the biggest corporate bond ever made in the UK currency at £ 225bn ($ 3-15bn), as part of its buyout financing The junk sterling debt offers a close rally in yield 180 basis points once currency hedging costs are factored in and outperform their peers in Europe – a selling point for Deh investors ors of the country “A Brexit deal and vaccine success means many investors are starting to review,” the UK market, said Nicolas Trindade, portfolio manager at Axa Investment Managers, which manages £ 758 billion ($ 1 1 trillion) The picture is different for good quality securities which are more prone to interest rate risk than their euro counterparts The longer average duration of corporate debt in sterling means that it suffers from rising yields on gilt – for investors who have suffered the biggest loss since 2008 (Updates with UK economic reopening plan in second paragraph) For more articles like this please visit us at bloomberg Subscribe now to stay tops with most trusted source of business news © 2021 Bloomberg LP

HSBC is set to pull out of US retail banking, a source familiar with the matter told Reuters on Monday, as Europe’s largest bank sought to divest a company that has long underperformed The exit US consumer activities will be part of the lender’s strategy update slated for Tuesday, as chief executive Noel Quinn looks to cut costs, increase commission income, and continue the lender’s transition to the Asia The sale or closure of its approximately 150 remaining branches in the United States, after closing 80 branches last year, would mark the end of HSBC’s struggle to turn around a company that has struggled to win against its national rivals in place

With declining liquidity in the bitcoin market, small transactions can have a relatively large impact on prices

Buffett recently doubled his energy investments while reducing his tech and banking holdings, and he’s not the only billionaire making big strides in energy in 2021

IAG, owner of British Airways, said on Monday it had increased its total cash flow by £ 245bn ($ 3-4bn) by deferring pension contributions and finalizing a loan, which will help it survive longer at the travel crisis “In addition to these arrangements, IAG continues to explore other debt initiatives to further improve its liquidity,” IAG said in a statement

Jerome Powell is likely to reiterate the Fed’s pro-stimulus stance later today, possibly putting a floor below bitcoin and stocks

ARKK Stock

World News – CA – Cathie Wood’s Ark ETF Extends Fall as Yields Slam High Flyers

Source: https://finance.yahoo.com/news/cathie-wood-ark-etf-tumbles-213424176.html