Good morning and happy Friday, investors! What can you look forward to on the stock market today? Well, keep your eyes on Elon Musk and his AI bullishness. Also, expect to see major crypto movement this morning in the aftermath of Coinbase’s (NASDAQ:COIN) big investment announcement. What else might the stock market do today?
- The S&P 500 is up 0.5%
- The Dow Jones Industrial Average is up 0.43%
- The Nasdaq Composite is up 0.76%
So what else will the stock market do today? Here are some of the top stories.
What Will the Stock Market Do Today? Watch Tesla.
Elon Musk’s Tesla (NASDAQ:TSLA) is in the spotlight nowadays for all the wrong reasons. Its self-driving auto features have gotten the company into hot water, thanks to a series of crashes that all occurred under the same specific circumstances. Now, it’s being probed by the National Highway Traffic Safety Administration.
Lots of criticism is being levied against the company, as it’s the only electric vehicle (EV) manufacturer that doesn’t use lidar for its self-driving capabilities. Many say the accidents wouldn’t have happened if Tesla had used lidar rather than computer automation.
Well, Musk took it upon himself to double down on his artificial intelligence (AI) autonomy tech, contrary to what critics might want. The CEO took the stage yesterday at the Tesla AI Day event and presented the company’s vision for expanding its controversial AI tech. It announced in-house computer chips for powering its AI supercomputer, Dojo. It also promised upgrades to the vision-based self-driving architecture to make the car a safer ride.
Even as all these promises and unveilings were made in the midst of a controversial government probe, none of it stole the show quite like the Tesla AI robot. Musk was joined onstage with a person in a robot costume for the reveal of an AI-powered robot, a product the company says will help with performing repetitive physical tasks. Don’t worry, you can outrun and overpower it if need be, according to Musk.
All of this news is making for an interesting day of trading for TSLA stock. The play is moving up to the tune of around 2% the day after the event.
Coinbase Pours $500 Million of Profits into Cryptocurrency
Coinbase is announcing its first big investment as a publicly traded entity. Can you guess what it’s buying? That’s right, the crypto exchange is going to invest its profits into digital currency.
CEO Brian Armstrong is announcing that the company’s board is all in on investing its profits into cryptocurrency. The initial investment will see the company add $500 million in crypto assets to its balance sheet. All in all, this is not a big blow to the company’s savings; as the Wall Street Journal reports, the investment is worth just over 20% of the entire cash stockpile the company has saved to help it combat market volatility and regulations.
It doesn’t end with this investment either. The company says it has plans going forward to invest 10% of future quarterly earnings into crypto. At its first earnings call since going public, Coinbase says it reeled in $1.6 billion in net income.
The company is already laying out which assets investors will see on its balance sheet. A post on the Coinbase blog shows the company’s intention to invest this mass of fiat into Ethereum (CCC:ETH-USD), proof-of-stake coins, DeFi cryptos and, of course, Bitcoin (CCC:BTC-USD). The two explicitly named coins are seeing some healthy gains in the midst of the announcement; Ethereum is climbing nearly 8% this morning, and Bitcoin is up 6%.
What Else We’re Watching
- The global chip shortage continues to strangle automakers, with Toyota (NYSE:TM) and Volkswagen (OTCMKTS:VWAGY) both saying Q3 production will be greatly reduced.
- Major League Baseball (MLB) and sports merchandiser Fanatics, Inc. are reaching a deal on exclusive licensing of MLB merchandise. The deal is enough to topple the near-final special purpose acquisition company (SPAC) merger between Topps and Mudrick Capital (NASDAQ:MUDS).
- Ahead of its Alonzo Purple network upgrade, altcoin Cardano (CCC:ADA-USD) is surging to a new all-time high today. It is now the third-largest cryptocurrency in the world by market cap after rocketing past Binance Coin (CCC:BNB-USD).
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.