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Coinbase suit, Molson Coors upgrade, Boeing Dreamliner woes: Top tickers

The SEC is suing Coinbase over alleged securities law violations. Boeing shares fall after new issues with the 787 Dreamliner raise concerns that deliveries could be slowed. Finally, Molson Coors shares were upgraded to "neutral" by Bank of America. Yahoo Finance Live's Akiko Fujita and Seana Smith break down the stories driving some of Tuesday's biggest stock movers.

Video transcript

AKIKO FUJITA: In terms of sectors that we're watching today, energy-- or I should say financials, one of the biggest performers or biggest gainers on the day. That sector up about 1.3%. Of course, crypto another one that you're watching very closely, Seana, on the back of what we saw out of the SEC.

SEANA SMITH: Certainly is. And one of the losers of today is Coinbase on the SEC clamp down here, closing in the red. The crypto exchange facing a lawsuit from the Securities and Exchange Commission. The SEC alleging that Coinbase violated rules that required to register as an exchange. We're looking at losses of about 12% on the day, off 20% in the last two days. And that's because this is the second case brought by the SEC against a crypto exchange, targeting Binance yesterday. So once again, losses across the board.

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And of course, this brings up the question, just what exactly regulation could potentially look like in this space? And what this does here for crypto and investor interest in crypto down the line?

AKIKO FUJITA: Yeah. I mean, there's a number of threads going here. One, we have certainly seen sort of the very strongly worded statements coming out of the crypto industry to say essentially that when you go after these exchanges in this way, that could stifle some of the innovation. We also had our guest earlier, Kavita Gupta, saying-- you know, asking that this actually raises more questions.

If you think about some of the tokens they went after-- Solana, Cardano, Polygon-- you know, why these specifically? And by the way, her point that she made is that these were on Coinbase. They were listed on Coinbase when they went public.

SEANA SMITH: Yeah. Certainly. And brings up a lot of questions, just exactly why now, why they are targeting Coinbase? You mentioned some of the strongly-worded commentary coming out here from the industry. Coinbase's CEO Brian Armstrong saying that the SEC complaint is part of a, quote, "an enforcement approach that is harming America." And that pretty much sums up how many in the crypto world are viewing the crackdown here from the SEC.

AKIKO FUJITA: OK. Let's move on to another story we're watching right now. Shares of Molson Coors moving higher after Bank of America Securities upgraded the stock to neutral from underperform. The analyst noting, Molson Coors US market share gained as a result of the Bud Light boycotts. Of course, it's a story that we've been following very closely there.

When you think about what specifically they've highlighted here in that report, they say, it's difficult to determine the duration of the boycott on the back of the influencer who was transgender. But they've already seen-- started to see seen some of the market share gains that Molson Coors is made.

SEANA SMITH: Yeah. They're starting to see it reflected in the sales. And they expected to see it reflected in earnings that are coming up, because some people who have decided to boycott Bud Light, they are turning to some of the offerings here from Molson Coors when you take into account Coors like Keystone, Miller Lite, some of the offerings there that people are using as an alternative to the Bud Light boycott.

When it comes to what this analyst is saying, he's saying that tap is likely to service the demand spike due in part to some of the supply chain improvement that the company had made on the back of some of the troubles that it did have during COVID. So they are able to meet that demand, the rising demand that they are seeing from the boycott. But when you take into account how long this boycott has lasted, and Bank of America pointed that out in this note, it's lasted a heck of a lot longer than many on the street were initially anticipating.

AKIKO FUJITA: Well, they're saying we're going into another big holiday, July 4. And that could have a big impact as well. Another story that you're watching-- I keep saying you're watching--

SEANA SMITH: Everyone's been watching it. It's Boeing. Look at that shares closing off just about 7/10 of a percent. The company warning of a new defect on the 1787 Dreamliner planes. As a result, the company is saying that it will delay deliveries of the aircraft. Shares closing lower for the day.

And Akiko, this is just the latest of a long list of setbacks here for Boeing. They have had a couple of problems with defects that have forced the company to halt their shipments of the Dreamliner over the last several years. So certainly, not welcome news among investors.

AKIKO FUJITA: Yeah. We're looking at this from a stock perspective, obviously, not good. But there is the question around confidence around Boeing planes as well. The company specifically saying they're inspecting inventory for 1787s right now for what they have described as non-conforming condition related to a fitting on the horizontal stabilizer. Either way, you look at it, certainly not good news for Boeing. And you do wonder how much that delay is going to last.

SEANA SMITH: Yeah, certainly. Shares closing off just about 7/10 of a percent.