Markets A.M.: A Hazy Outlook for Weed Stocks

Dow Jones11-22

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Hello. I'm Margot Patrick, getting you started for Friday's session.

Gloom has descended on Europe after unexpectedly weak surveys of business activity. That's buoying the dollar, while the euro is back at 2022 lows. Equivalent U.S. purchasing managers indexes are due at 9:45 a.m. ET.

Ahead of those PMIs, futures slipped, and bitcoin remained stuck at a little under $100,000.

The Dow industrials had gained 1.1% Thursday , boosted by gains at Salesforce and IBM.

Follow our live coverage throughout the day for the latest news affecting markets.

Meanwhile, Heard on the Street's Carol Ryan looks at one industry that isn't buzzed about a second Trump administration: the pot business.

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Stocks to Watch

Gap: Shares jumped 15% premarket after Gap raised its sales outlook for the year. Chief Executive Richard Dickson, who took charge last year, has been pursuing a turnaround of the clothing retailer.

MicroStrategy: Shares of the bitcoin-buying software company lost more than 3% ahead of the opening bell. The stock had pulled back 16% Thursday after surging to record highs.

Intuit: The maker of tax-preparation software guided for weaker-than-expected results in the current quarter. Its stock dropped off-hours.

Baidu, Alibaba: U.S.-listed Chinese tech stocks fell premarket, after a weak session in Hong Kong. The search-engine operator Baidu reported a second straight quarter of lower revenue . Alibaba said it would integrate its domestic and overseas e-commerce platforms.

Elastic: Shares soared premarket after the data-analytics company reported better-than-expected results.

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Marijuana Industry Could Stay in Limbo Under Trump

By Carol Ryan

Republicans don't dislike the cannabis industry as much as they used to, but that doesn't mean they will lift a finger to help it. A bad and likely outcome for pot companies is that everything stays the same as it is today during the second Trump administration.

Cannabis investors have been despondent since the election delivered a triple blow in the form of Donald Trump's victory, a Republican sweep of Congress and a failed ballot to legalize adult-use marijuana in Florida. The AdvisorShares Pure US Cannabis ETF, which tracks a basket of American pot stocks, is down almost a third since Election Day.

The incoming administration marks the sixth consecutive presidential term under which the cannabis industry will be forced to operate in limbo. America first began dabbling with legal cannabis more than 20 years ago, when California established a medical-use market in 1996, says Matt Karnes, founder of research firm GreenWave Advisors.

Cannabis is still prohibited at the federal level, even though it is fully legal in more than 20 states. The federal ban means cannabis can't be transported over state lines, creating inefficiencies for growers such as Green Thumb Industries and Trulieve that operate in multiple states. American cannabis companies aren't allowed to list on U.S. stock exchanges, or even to open a regular checking account at a major bank.

Keep reading . Charting the Markets

Nvidia's breakneck growth to the top may mean there's only way to go and that is down, writes Heard on the Street's Dan Gallagher .

Spirit Airlines was loved for its low fares and hated for its bare-bones service. It learned, though, that severely discounting fares couldn't build a permanent moat, a key lesson in "airline-o-nomics," writes Heard on the Street's Jon Sindreu .

Sales of existing homes picked up in October , boosted by a short-lived decline in mortgage rates.

Must Reads

Gautam Adani became one of the world's richest men by building coal-fired power plants to fuel India's rise as a global economic force. Now, he is accused of paying bribes to turn India into a clean-energy powerhouse.

Wall Street is glued to "The Apprentice: Treasury Edition." The auditioning for President-elect Donald Trump's Treasury secretary isn't just great theater. Trump's choice will be key to where his economic agenda is headed, writes our chief economics commentator Greg Ip .

The Irish government is unbelievably rich. That is an unexpected side effect of a global clampdown on corporate tax dodging that is sending money to its shores.

More:

A Miami Financier Is Quietly Trying to Buy Nord Stream 2 Gas Pipeline China's Plan B to Save the Economy: A Crusade Against Busywork Huawei's Chip Advances Threaten Apple in China This Day in Markets On this day in 1963: Stock markets plunged as news emerged that President John F. Kennedy had been assassinated in Dallas. The New York Stock Exchange closed early that Friday and stocks rebounded when it reopened Monday. Beyond the Newsroom

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About Us

We want to be the first place you go to get ready for the opening bell every day. This newsletter was written by Margot Patrick ( [margot.patrick@wsj.com]) in London.

This article is a text version of a Wall Street Journal newsletter published earlier today.

 

(END) Dow Jones Newswires

November 22, 2024 06:55 ET (11:55 GMT)

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