Dow Jones Jumps On U.S.-Mexico Deal Hopes: Tesla Falls; These Marijuana Stocks Fly On Deal Buzz
The Dow Jones opened solidly higher at Monday’s open, amid reports that a U.S.-Mexico trade deal could come today. The S&P 500 index and Nasdaq composite hit fresh all-time highs. Tesla (TSLA) fell after Chief Executive Elon Musk dropped a bid to take his company private. Marijuana stocks were early winners as Tilray (TLRY) announced a supply deal with Nova Scotia Liquor, and pot companies form alliances with the alcohol industry. Tilray stock hit a new high before the open. So did Cronos (CRON) and Canopy Growth (CGC).
Dow Jones Today
The Dow Jones rose 0.7%. The S&P 500 index and Nasdaq composite climbed 0.5%. U.S.-Mexico trade talks have made progress, with reports suggesting a deal announcement could come today. That could pave the way toward a revised Nafta accord with Canada.
President Donald Trump tweeted Monday morning that a Mexico deal was “looking good.”
A big deal looking good with Mexico!
— Donald J. Trump (@realDonaldTrump) August 27, 2018
Adobe Systems (ADBE), Home Depot (HD), Intuit (INTU) and Okta (Okta) are among the notable stocks trading near buy points. Netflix (NFLX) continued its rebound, rallying more than 2% as it closes in on its 50-day moving average.
Asian markets rallied overnight as China’s central bank tweaked its currency policy, helping to keep the yuan stable. China’s Shanghai composite rose 1.9% and Japan’s Nikkei 0.9%.
Tesla stock fell before Monday’s market trading, in typically volatile fashion. Elon Musk issued a blog post late Friday that Tesla will remain a public company and that he will continue to run it. That’s a reversal from Aug. 7, when Musk tweeted that he was considering taking Tesla private, with “funding secured.” Tesla stock spiked on that news, but then plunged as doubts grew about a deal and about Musk himself.
An SEC probe and shareholder lawsuits still hang over Tesla, which will try to refocus on ramping up production and turning profitable.
Tesla stock fell 1.3% to 318.70, well off premarket lows. Shares are finding to hold support at the 200-day moving average.
Canadian pot producer Tilray said Monday that it will supply marijuana to Nova Scotia Liquor as Canada legalizes pot for recreational use in October. That follows buzz last week that global alcoholic drinks giant Diageo (DEO) has been in talks with Canadian marijuana companies about investments or alliances. Corona beer maker Constellation Brands (STZ) recently announced plans to substantially raise its stake in Canopy Growth, to 38%.
Tilray stock vaulted 19% and Canopy Growth jumped 5% early Monday, after both skyrocketed last week past buy points. Cronos stock surged 24%, blasting well past its March 6 peak of 10.39.
Tilray, the first true marijuana stock IPO on U.S. markets, will report quarterly results on Tuesday.