The main driving force behind the action is the Marijuana Opportunity Reinvestment and Expungement Act, or MORE Act, which was reintroduced by Democratic House Judiciary Committee Chairman Jerry Nadler last Friday.
The bill would decriminalize marijuana federally by removing it from a list of controlled substances and reassessing previous marijuana convictions.
“Despite the slim chances that the law will be passed [in] of the Senate (due to filibuster), the increase in media coverage is likely to attract the attention of the average retail investor, ”Vanda’s Ben Onatibia and Giacomo Pierantoni told clients on Wednesday.
They noted that Sundial and Tilray were the fourth and seventh most mentioned stocks in the popular Reddit WallStreetBets forum on Tuesday.
Amazon’s big announcement could fuel the hype. In a blog post, Dave Clark, CEO of Amazon’s Global Consumer Division, said changing state marijuana laws mean the company will no longer include the substance in pre-drug testing. to work. The Internet giant also approves the MORE law.
“We hope that other employers will join us and that policymakers move quickly to pass this law,” Clark said.
Cannabis companies pay special attention to this.
“We remain focused on advancing our US ecosystem and anticipate significant cannabis reform during this congress,” Canopy Growth CEO David Klein said on Tuesday. He said there had been “substantial bipartisan dynamics over the past two months.”
Next stop: The S & P / TSX cannabis index has been in the red for the past three months, but remains up 33% year-to-date after soaring in January and February. Will the love of Reddit and Amazon’s change be enough to spark another shopping spree?
Latest corporate hack shakes up the meat market
Buyers may have to prepare for another supply crisis, report my CNN Business colleagues Danielle Wiener-Bronner and Angus Watson.
The details: Leading beef and pork producer JBS was the latest company to suffer a cyberattack over the weekend, shutting down factories in North America and Australia. The White House said the ransomware attack was likely carried out by a Russian-based criminal organization.
The company, authorities and trade groups offer assurance that operations will return to normal as soon as possible. JBS said “the vast majority” of its food factories will be open on Wednesday.
But closures could still be felt in all supply chains.
“Even a single day of disruption will have a significant impact on the beef market and wholesale beef prices,” wrote Steiner Consulting Group, which specializes in commodity prices, in a research note.
David Littleproud, Australia’s Minister of Agriculture, Drought and Emergency Management, told CNN Business on Wednesday that the country does not believe there will be a shortage of red meat, even though JBS is about a quarter of the country’s red meat processing.
“But we are obviously concerned that there are now limited operations at JBS’s facilities in New South Wales and Victoria,” he said. “Some work could resume in Queensland tomorrow. We hope they will return to full capacity soon, but there is no definitive timetable.”
Steve Meyer, an economist at commodity firm Kerns and Associates, agreed that a one or two day hiatus could push up wholesale meat prices. But if the problem is resolved within days, he said, restaurants and grocery stores are unlikely to pass those costs on to consumers.
Investor Perspective: While the price of meat may temporarily rise, cattle futures have fallen as JBS had to stop slaughtering cows while it deals with the hack.
“Baby Shark” Sponsor Receives Elon Musk Treatment
Elon Musk has turned his attention away from Shiba Inu dogs to baby sharks – and investors are singing along with them.
“Baby Shark crushes everything! More views than humans,” Musk wrote, referring to the catchy children’s song, which became the most viewed video on YouTube in November.
Shortly after the tweet, shares of Samsung Publishing jumped 10% to 49,000 won ($ 44) in South Korea. He lost some of those gains later, but still closed around 6%, his best day in almost a month.
Musk’s tweets are notoriously shaking up the markets. For months, the billionaire plugged in dogecoin, the cryptocurrency even with a dog’s face. Its support helped fuel astronomical price gains before the recent crypto crash.
But Musk’s thoughts online are being watched closely. Previous tweets about his own companies got him into trouble with the United States Securities and Exchange Commission. Tesla’s lawyers are now required to pre-approve its tweets if they relate to the company’s financial situation, production numbers or new lines of business.
It just happened: The SEC informed Tesla that two of Musk’s tweets from 2019 and 2020 – one on Tesla’s solar roof production volumes and one on the company’s stock price – didn’t received the required prior approval, the Wall Street Journal reported on Tuesday. .
Also today: The Federal Reserve releases its “beige book” of economic conditions in the United States at 2 p.m. ET.