The North American Marijuana Index soared on Thursday as after-hours news of President Trump’s intensified trade-war with China mostly left pot stock investors unaffected during trading hours. Markets assumed incorrectly on Thursday that cooling tensions with Beijing were cause to celebrate, sending both weed stocks and the broader markets rising throughout the day. Meanwhile, stock futures fell as Trump announced an additional $100 billion in tariffs on China, a move Trump stated was being considered "in light of China's unfair retaliation" due to previous tariffs of $50 billion on Chinese goods. The dizzyingly childish game of brinksmanship had yet to price into marijuana stocks, as the Index gained 10.41 points, or 4.64 percent to close out Thursday at 234.80.
The United States Marijuana Index climbed 3.61 points or 4.92 percent to close out Thursday at 76.94, while the Canadian Marijuana Index jumped 25.99 points, or 4.26 percent to close out the day at 635.55.
According to Trump, U.S. trade representatives determined that China "has repeatedly engaged in practices to unfairly obtain America’s intellectual property."
"Rather than remedy its misconduct, China has chosen to harm our farmers and manufacturers," Trump said.
Trump’s continued rhetoric on tariffs has caused wild swings in the markets over the past few weeks, prompting investors to gain and lose faith over 24-hour cycles continually. Although, while futures markets fell in after-hours trading on Thursday, some experts are looking past the President’s bluster. "Any escalation in the trade war rhetoric would be more negative for China than the U.S. given the former's relative dependency on trade, but for now, the markets are focused on the payrolls data," said Richard Falkenhall, a senior currency strategist at SEB in an interview with Reuters.
Cannabis stocks benefited from a deal Canopy Growth Corporation (TSX:WEED), and Canopy Rivers Corporation announced on Thursday with LiveWell Foods Canada Inc. Canopy and Canopy will help to develop and commercialize two cultivation facilities for LiveWell in Ontario and Quebec.
“This new partnership represents further validation that Canopy is the platform of choice in the cannabis sector,” remarked Canopy CEO, Bruce Linton in a statement. “Canopy has an unmatched ability to collaborate with partners given our breadth of operational knowledge, technology, investment capital, and cultivation expertise.”
Horizons Marijuana Life Sciences ETF (HMMJ.TO) rose CAD$0.69 per share, or 4.55 percent to close the day at CAD$15.84. Similarly, the Evolve Marijuana ETF (SEED) rose $0.68 per share to close the day at CAD$16.35.
We Have To Go Back To The Island, Kate!
Louisiana state lawmaker Dodie Horton (R) found herself fooled by the satire rag The Daily Currant on Thursday when she referenced an old article that claimed 37 people died in Colorado following marijuana legalization. A reporter from The Advocate, Elizabeth Crisp, informed Representative Horton of the articles satirical nature, to which Horton replied her information came from a “so-called ‘Trusted’ source.” The article came up during a debate over a medical marijuana bill in the state, which Horton opposed.
“I was given this info from a so-called “ Trusted” source but now know that the story was not credible,” Horton tweeted later in the day. “What is fact is the number of car wrecks as a direct result of marijuana use in Colorado is up by 48 percent. With several ending in deaths. Need the experts/FDA to approve usage/First,” she continued.
The article quoted one Dr. Jack Shephard from St. Luke’s Medical Center in Denver, however, the hospital confirmed no such doctor is employed by them. In fact, it appears that Dr. Jack Shephard is a spoof on the character if the same name from the popular television show Lost.
According to The Advocate, Horton did acknowledge that the article was a spoof during the committee hearing but failed to address the public record. Horton did block Crisp on Twitter following the incident.
PotNetwork Holdings, Inc. (OTCPINK:POTN) took steps to become up-listed to the OTCQB… HempAmericana, Inc. (OTC:HMPQ) filed permits to become a licensed grower in Maine… Harvest One Cannabis Inc. (TSXV:HVT) converted all outstanding debentures into common shares.
*Photo Credit: Gage Skidmore