Today, the cannabis sector was down despite the strong performance of the broader equity market. At 1:12 PM ET, the S&P 500 Index and the Dow Jones Industrial Average were up 0.5% and 0.9%, respectively. Investors’ optimism about the breakthrough in the US≠China trade war led the broader equity market to rise.
However, the rally failed to drive the cannabis sector. At 1:10 PM ET, the ETFMG Alternative Harvest ETF (MJ) was down 1.1% while the Horizons Marijuana Life Sciences Index ETF (HMMJ) had fallen 0.5% at 12:52 PM ET.
But not all cannabis stocks are struggling today. Let’s take a closer look at what’s moving the cannabis sector.
Aurora Cannabis on Mad Money
Jim Cramer, host of Mad Money, spoke about Aurora Cannabis (ACB) in yesterday’s lighting round on CNBC. He stated, “The group is just under heavy pressure, and every time it sticks it’s head up, it gets completely whacked. They’re playing whack-a-mole with these. We’ve got to wait to until one of them shows a really big profit.”
Today, Aurora stock was down 2.5% as of 12:55 PM ET. The company is due to report its first-quarter earnings on November 14. Check out Aurora Cannabis: What to Expect from Its Q1 Earnings for analysts’ estimates.
Canopy Growth partners with Drake
Today, Canopy Growth (CGC)(WEED) announced that it has partnered with the iconic Canadian rapper Drake. Alongside Drake, the company has launched a wellness cannabis company called the More Life Growth Company in Drake’s hometown of Toronto. Drake will own 60% of the new entity while Canopy Growth will own the remaining 40%.
Despite the new Drake partnership, Canopy Growth stock was trading 0.1% down as of 1:03 PM ET. Weakness in the cannabis sector appears to have dragged the stock down.
KushCo Holdings stock also down today
Yesterday, KushCo Holdings (KSHB) launched a new hemp trading business that would facilitate legal hemp transactions. The company stated that it would create spot and long-term contracts for buying and selling hemp biomass and various hemp-based CBD products. But today, the stock was down 1.1% as of 1:05 PM ET.
IIPR stock rises over 11.5%
Yesterday, Innovative Industrial Properties (IIPR) reported its third-quarter earnings after the market closed. For the quarter, the company outperformed both analysts’ revenue and EPS expectations. You can read more about IIPR’s third-quarter performance in IIPR Stock Rises after Revenue and EPS Beat. IIPR’s impressive third-quarter performance led the stock to rise 11.7% at 1:11 PM ET.
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