Cannabis stocks stumbled for the second day in a row on Thursday, raising concerns of panic in the marijuana markets as investors appeared uneasy despite solid news from around the industry. In a marked turn of events, MJIC’s United States Marijuana Index outperformed its Canadian counterpart on Thursday, posting a slight gain to the latter’s noteworthy decline. It was another record day on Wall Street as the market bounced back from Wednesday’s NAFTA scare, with energy stocks and reliable news from the corporate sector helping the rally. Of note was Walmart’s announcement that the company would institute wage increases and bonuses following the passage of the Trump administration’s tax reform plan.
Hidden in the joyous celebration on Thursday were signs of a weakening economy, however, as Walmart buried the fact that along with their grand gesture they would be cutting thousands of jobs at dozens of Sam’s Clubs across the country. On top of that, first-time jobless claims came in higher than expected this morning, showing that the emperor may not be quite so fully dressed. Still, the Dow Jones Industrial Average, Nasdaq, and the S&P 500 all notched impressive gains to close the day. It was a similar story up north, where Canada’s top stock index rose 38.99 points or .24 percent.
It was perhaps those underlying market signals that had cannabis investors apprehensive again on Thursday, as all significant marijuana indices fell save for MJIC’s United States Marijuana Index, which gained 0.45 points, or 0.45 percent to close the day at 100.18. Even MJIC’s monthly report for December, which showed The North American Marijuana Index climbing 61 percent in December was of little consolation to investors on Thursday, as the Index fell 22.42 points or 6.41 percent.
The Marijuana Index rose 61 percent in december, broken down by country