Today, the Conference Board announced that the US Consumer Confidence Index declined to 125.1 in September compared to 134.2 in August. The decline in the US Consumer Confidence Index appears to have led the broader US equity market to fall. At 2:35 PM ET, the S&P 500 Index and the Dow Jones Industrial Average were trading 0.6% and 0.4% lower, respectively. The cannabis ETFs also had a tough day today.
The ETFMG Alternative Harvest ETF (MJ) and the Horizons Marijuana Life Sciences Index ETF (HMMJ) had fallen 4.0% and 5.2%, respectively. Also, the majority of the cannabis companies were trading in the red today.
MedMen opens three new stores
Today, MedMen Enterprises (MMEN) (MMNFF) announced the opening of three new stores in Florida. The company currently operates four stores in the state. The company has a license to open 35 stores in the state. MedMen plans to open four more stores in Florida in 2019.
Despite the announcement, the company was trading 6.4% lower than its previous day’s closing price at 2:35 PM ET. Last week, the company had launched its delivery service from all its locations in Nevada.
Aphria launches a cannabis education program
Today, Aphria (APHA) launched Aphria Educates, which aims to inform Canadian adults about the safe and responsible usage of legally available cannabis. At 2:35 PM ET, the company’s stock price had declined by 5.1% from its previous day’s closing price.
However, APHA stock has increased 2.0% YTD through September 23. The company’s strong fourth-quarter earnings appear to have led to a rise in Aphria’s stock price. The company’s management is also bullish on its fiscal 2020 revenue. For more information, please read Why Aphria Expects Huge Revenue Growth.
Cronos Group falls over 7%
Today, Cronos Group (CRON) announced that its Chairman and CEO, Mike Gorenstein, will present at tomorrow’s CIBC 18th Annual Eastern Institutional Investors Conference. At 2:35 PM ET, Cronos was trading 7.1% lower than yesterday’s closing price. The weakness in the cannabis sector appears to have dragged the company’s stock down.
Earlier this month, the company had completed the acquisition of four Redwood Holding Group’s subsidiaries. The company reported its second-quarter earnings on August 8. During the quarter, the company’s revenue beat analysts’ expectations. However, its operating losses were wider than expected, which led the company’s stock price to fall.
Aurora Cannabis continues to fall
At 2:35 PM ET, Aurora Cannabis (ACB) was trading 5.4% lower. The company’s stock price has been under pressure since it reported its lower-than-expected fourth-quarter revenue on September 11. Following its weak fourth-quarter revenue report, several analysts lowered their price targets.
On September 20, MKM Partners initiated coverage on ACB stock with a “sell” rating and a price target of 5.00 Canadian dollars. All these factors led to a fall in the company’s stock price. However, the company continues to focus on expanding its CBD business in the US, and also getting ready for the second phase of legalization in Canada.