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Pot Stocks Close Mixed As Wall Street Suddenly Flees Facebook

The North American Marijuana Index gained on Monday, climbing 1.43 points or 0.54 percent despite a mixed day for pot stocks that saw the U.S. marijuana markets falter and Canadian markets hold steady. News of Cronos Group Inc.’s (NASDAQ:CRON) (TSX-V:CRON) MedMen deal kept overall weed stocks in the black on Monday, even as the broader markets faltered on Facebook’s deepening ties to the White House Russia Scandal. The Index closed out Monday at 774.16.

The United States Marijuana Index fell 1.55 points, or 1.91 percent, to close out the day at 79.57, while the Canadian Index rose 12.75 points, or 1.67 percent, to end Monday at 774.16.

Wall Street shed value on Monday as investors pulled out of Facebook after calls for CEO Mark Zuckerberg to explain how data firm Cambridge Analytica, who consulted on President Donald Trump’s 2016 campaign gained access to the data of 50 million site users. The social media giant fell 6.8 percent, weighing down the overall markets to send Wall Street into its worst day in over a month.

The Dow Jones Industrial Average fell 335.6 points, a 1.35 percent decline, to close Monday at 24,610.91. Meanwhile, the S&P 500 lost 39.09 points, or 1.42 percent, ending the day at 2,712.92, while the Nasdaq Composite fell 137.74 points, a 1.84 percent drop, to end Monday at 7,344.24.

"What's chilling to an investor is whether Facebook will be able to get advertisers to pay for the rich data they pay for today," said Kim Forrest, Senior Portfolio manager, Fort Pitt Capital in an interview with Reuters. "Investors are not only concerned about losing advertising dollars. They're also concerned these companies might come under relatively heavy regulation."

The newly rebalanced Horizons Marijuana Life Sciences ETF (HMMJ.TO) gained CAD$0.24 per share on Monday, a 1.25 percent increase, to close out the day at CAD$19.44. The Evolve Marijuana ETF (SEED) climbed CAD$0.29 per share, or 1.44 percent to end the day at CAD$20.40.

Winners and Losers

Canopy Growth Corporation (TSX:WEED) (OTC:TWMJF) rose 5.35 percent on lower than average trading volume closing the day at $25.80 per share… Choom Holdings Inc. (CSE:CHOO) (OTC:CHOOF) climbed 16.67 percent on higher than average trading volume closing the day at $0.82 per share... Cronos Group Inc. (NASDAQ:CRON) (TSXV:CRON) rose 11.89 percent on higher than average trading volume closing the day at $8.75 per share.

mCig, Inc. (OTC:MCIG) fell 6.04 percent on lower than average trading volume closing the day at $0.22 per share… Solis Tek Inc. (OTC:SLTK) dropped 8.00 percent on higher than average trading volume, closing the day at $1.15 per share… Terra Tech Corp. (OTC:TRTC) plummeted  14.06 percent on higher than average trading volume, closing the day at $3.21 per share.

One Million Cannabis Jobs

New Frontier Data’s latest Cannabit argues that federal cannabis legalization in the United States would help create over one million new jobs in the legal weed sector. According to the report, the retail operations sector would see 364,000 jobs, with 229,000 administrative jobs and 166,000 manufacturing jobs. See the full chart below:

Cannabit
Courtesy New Frontier Data www.newfrontierdata.com
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