Tesla has announced that it is recalling over one million vehicles in the U.S. over 'pinching' concerns, and Robinhood's stock saw a huge pop on reports that the SEC will not ban payment for order flow. The Street's J.D. Durkin has more on what to watch today.
Full Video Transcript Below:
J.D. DURKIN: All right, here's what to watch for today. And we've got two big companies in focus. First up, shares of Robinhood (HOOD) are up in the session after a report that the SEC will not ban the controversial, though very lucrative practice of payment for order flow. That's, of course, the mechanism by which Robinhood and other similar apps make money off of the trades of their clients. Robinhood has always maintained that payment for order flow is how the platform allows for commission free trades. But government regulators have raised concerns the last several years that it could lead to low execution prices. Shares of Virtu Financial also up on this news.
Next up, in an effort to prevent pinching your fingers, Tesla (TSLA) is recalling more than a million Model 3 cars here in the U.S. because automatic windows may exert excessive force while closing. The company says it has not been made aware of any injuries, but has said it will perform a software update on the Windows system to rectify the problem. Vehicles manufactured after September 13th, 2022, are not included in this recall.
That'll do it for us here at the street. Stick with us for more on these and every other major market story that matter to you.