Diamonds and Dogs

1/28/19

Canadian cannabis stocks resume their upward trend. Canopy Growth Corp (CGC) is up 4% today after rallying 8% last Friday following an upgade and a $60 price target. The analyst said the company is well-positioned with a $4 billion investment from Constellation Brands to grow and expand their legal and medical marijuana business. The analyst expects the global cannabis market to be worth $250 billion to $500 billion a year in the long term and to be worth $15 billion to $50 billion in the nearer term.

Two dogs today blaming a Chinese slowdown. Caterpillar (CAT) is down 9% after missing estimates and lowering full year guidance.  Catepillar is seeing a synchronized slowdown in global growth with trade tariffs continuing to bury sales in Asia. As one analyst put it, Caterpillar is a canary in the global economic mine that is starting to scream recession. Chipmaker, Nvidia (NVDA) is down 15% after cutting  sales and margin guidance for the current quarter citing deteriorating macroeconomic conditions, particularly in China, impacting consumer demand for Nvidia  gaming chips.