Market Recap: Stress Tests, Libra, and the Future of Cannabis



Monday morning market recap

Last week brought some big news for financials, Facebook, and cannabis stocks in the face of mounting market pressure. Today’s market recap focuses on the Fed’s stress tests and their impact on US banks, everything you need to know about Facebook’s new cryptocurrency, and new opportunities in the cannabis space.

We also take a look at Beyond Meat’s big product launch, J.P. Morgan’s concerns with this market rally, and the other highlights you need to keep in mind as we head into this first week of July.

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Stress tests

The Fed’s latest stress test showed that the US banking system is in good shape. Randal K. Quarles, vice chairman of the Fed’s Board of Governors, said that “the results confirm that our financial system remains resilient.” He added that “the nation’s largest banks are significantly stronger than before the crisis.”

Here’s how some of the big names plan to take advantage of these findings.

Nike’s earnings disappointed

Nike reported disappointing earnings results last week after beating estimates for 27 consecutive quarters. Find out what went wrong this time around and why management still expects high single-digit sales growth for the year.

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Boeing grapples with a newly discovered flaw

The Federal Aviation Administration has found another computer problem with Boeing’s disastrous 737 MAX jets. Pilots discovered the flaw while testing Boeing’s updated MAX software in a flight simulator. Now they’re concerned it could increase the risk of a crash.

Can Boeing solve the problem without further turmoil for the stock?

Trouble in paradise?

CannTrust Holdings, Canopy Growth, and HEXO saw weak performance in June. All three companies have faced downward revisions in their Wall Street ratings and price targets. How will they adapt in this particularly risky industry?

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Beyond Beef

Last week, Beyond Meat announced its new product, Beyond Beef. The company designed Beyond Beef to replicate the texture and juiciness of traditional ground beef, “with the added nutritional and environmental benefits of eating plant-based meat.”

Find out how investors reacted and what you need to know before Beyond Beef as it hits US markets.

Something’s wrong here

A couple weeks ago, the S&P 500 hit a record high. And for June, the SPDR S&P 500 ETF could be seeing its best first half in a decade while the Dow Jones Industrial Average is staring at its best June in 80 years. But J.P. Morgan analyst Jason Hunter sees something seriously wrong with this market rally.

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Looking beyond medicinal cannabis

More and more international markets are opening up to cannabis stocks. Meanwhile, Canadian players are looking to leverage their expertise and capture market share on these new frontiers.

But while most of the big names are setting their sights on the medical market, HEXO has other ideas about the “cannabis experience.”

India’s rolling out the red carpet

On Tuesday, Bloomberg reported that India was planning incentives to court companies moving out of China. China is still embroiled in a bitter trade war with the US. Apple supplier Foxconn is set to start the mass production of iPhones in India soon. However, emulating China’s manufacturing prowess and ecosystem might not be so easy.

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A closer look at steel

In a Fox interview, President Donald Trump said US “steel companies are going through the roof” since the Section 232 tariffs. But U.S. Steel, AK Steel, Nucor, and Steel Dynamics fell to 52-week lows last month, and they’re still below their price levels when Trump announced the tariffs last year. A closer look is warranted: the steel industry’s performance could offer some valuable clues for investors.

Libra 101

Facebook launched its cryptocurrency, Libra, alongside what it’s calling the Libra Association. We rolled up our sleeves last week for some in-depth analysis to help you understand everything you need to know about Libra. Our deep dive explains not only the crypto itself but also the blockchain and the association.

The next chapter for cannabis stocks

Initially, recreational cannabis companies rushed to develop large extraction and cultivation facilities. As a result, several companies have large supply capabilities.

Now, as the cannabis industry starts to mature, producers are shifting to more complex cannabis-infused products. We broke down what you need to know about the next phase of the cannabis industry.


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