* Major U.S. indexes down >1%, but off early lows
* All major S&P sectors red: energy taking biggest hit
* Euro STOXX 600 index down ~2%
* Dollar, gold, crude slip
* U.S. 10-Year Treasury yield ~1.63%
May 11 - Welcome to the home for real-time coverage of
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COINBASE MAY SLIDE AS RESULTS LIKELY TO MISS - NEW
CONSTRUCTS (1026 EDT/1426 GMT)
Coinbase Global Inc, the platform for trading
cryptocurrencies, could tumble further after it releases results
on Thursday as the company comes up short on future profit
expectations, warns New Constructs in a research note.
Coinbase, which is trading around $285 a share, is unlikely
to report news from its first-quarter results that would justify
owning shares at current levels, said David Trainer, chief
executive of New Constructs.
Coinbase's valuation implies it will exceed the combined
revenue of New York Stock Exchange operator Intercontinental
Exchange Inc and Nasdaq Inc, Trainer said.
Investors should expect the stock, down more than 30% from
its peak of $429.54 on April 14 - Coinbase's first date of
trading as a public company - to continue to underperform
further and its share price could fall to $100.
Coinbase is not likely to fulfil the profit expectations
baked into the stock's current valuation of $58 billion. Rising
competition should reduce Coinbase’s market share and pricing
power as revenue and profits at the company taper off, according
to New Constructs.
"We believe the stock has more downside risk ahead," Trainer
said.
(Herbert Lash)
*****
U.S. STOCKS TAKE EARLY HIT, BUT BOB AND WEAVE OFF LOWS (1000
EDT/1400 GMT)
Major U.S. indexes took stinging opening hits on Tuesday,
amid concerns over lofty valuations and inflation.
Of note, the NYSE's opening tick of -2,086 was the most
negative since a -2,098 reading on June 11 of last year.
In the wake of this, the indexes are off their early lows
established in the first 1 to 10 minutes or so of the session,
and trying to make a comeback.
However, even with the recovery attempts, the S&P 500 growth
/S&P 500 value ratio is on track for an 11th
straight down day, which is longest such streak since a 12-day
run of losses in September 2017.
Nearly all major S&P sectors are red, with utilities
and tech among those taking the biggest
hits. Materials are the sole gainer. This as the U.S.
10-Year Treasury yield pops up to the 1.63% area.
Here is where markets stand early on Tuesday:
(Terence Gabriel)
*****
NASDAQ 100 FUTURES: PEERING OVER A CLIFF? (0900 EDT/1300
GMT)
Since their April highs, Nasdaq
and tech-laden indexes, have come
under increasing downside pressure.
In fact, CME e-mini Nasdaq 100 futures are now down
around 7% from their April 16 record close and April 29 record
intraday high, in just 17 and 8 trading days.
This in the wake of a noticeable momentum lag:
Indeed, with the mid-April futures' high, the weekly RSI
failed to muster enough strength to reclaim the 70.00 overbought
threshold. With this, it formed its third lower peak vs its
early January high, which of course was well below its August
2020 peak. Thus, a protracted momentum divergence was in place.
With this week's slide, the futures are once again
threatening a close below the 20-week moving average, which now
resides around 13,300. The futures have recorded 56 straight
weekly closes above this moving average, which is the longest
such run since a 61-week streak from late 2016 to early 2018.
Additionally, the futures are violating the weekly support
line from the March 2020 trough, which also now resides around
13,300.
Holding below these barriers, which are now resistance,
while the weekly RSI threatens to fall into oversold territory,
can keep the futures on the back foot, with the March trough, at
12,194.75, potentially the next big test.
Meanwhile, based on Tuesday's across the board premarket
futures weakness, and now rising volatility measures
, the recent performance rift among various indexes may be
about to be resolved with them all headed into a valley,
together.
(Terence Gabriel)
*****
FOR TUESDAY'S LIVE MARKETS' POSTS PRIOR TO 0900 EDT/1300 GMT
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(Terence Gabriel is a Reuters market analyst. The views
expressed are his own)