CNBC Morning news
1. New highs
Tuesday might have otherwise been humdrum for U.S. stock markets, but the session nonetheless left the broad S&P 500 index at its highest point since August and the tech-heavy Nasdaq at a fresh 2023 high. So, for now at least, it appears markets are simply chugging. Earnings season is pretty much over, the debt ceiling is resolved until after the 2024 election, and recent data has demonstrated the resiliency of the U.S. economy. The Federal Reserve’s policy-setting board meets next week, though, so that could make things more interesting. Follow live market updates.
2. Not relevant to anything
3. SEC goes after Coinbase
First Binance, now Coinbase. After bringing charges against the world’s biggest crypto exchange on Monday, the Securities and Exchange Commission on Tuesday sued publicly traded Coinbase, saying it has “defied the regulatory structures and evaded the disclosure requirements” of securities laws. Shares of the crypto firm fell 12% Tuesday after already falling 9% Monday following the SEC’s action against Binance. “These trading platforms, they call themselves exchanges, are commingling a number of functions,” SEC Chairman Gary Gensler told CNBC. “We don’t see the New York Stock Exchange operating a hedge fund.” In turn, Coinbase accused the SEC of relying to heavily on an “enforcement-only approach” to the crypto industry.
4. Smoked out
Raging Canadian wildfires have blanketed much of the northern U.S. with smoke and haze, resulting in poor air quality and an eerie apocalyptic tint in the sky. Officials from Minnesota to New England sent out advisories about the air, warning it could be especially harmful to people with heart and respiratory ailments. In New York City, the air was so bad it exceeded exposure levels set out by the World Health Organization. Smoky skies could end up sticking around for much of the summer, too, as Canada is facing possibly its worst wildfire season ever, CNBC’s Emma Newburger reports. It’s expected to last through August.
5. 'Public nuisance'
Shares of Hyundai and Kia fell in overseas trading Wednesday after New York City sued the South Korean automakers in federal court because many of their vehicles are too easy to steal. “In electing profits over safety and deviating from industry norms by not including engine immobilizers as a standard safety feature, Defendants created and maintained a public nuisance,” the city said in a legal filing. Hyundai and Kia vehicles became the subject of TikTok videos that showed an easy way to hotwire and steal them, leading to a huge surge in vehicle thefts in cities. Hyundai and Kia said they have taken steps to fight theft and that they’re working with U.S. safety and transportation regulators.
— CNBC’s Mike Calia wrote this newsletter. Samantha Subin, Lillian Rizzo, Jessica Golden, Rohan Goswami, Emma Newburger and Jihye Lee contributed.
