🍨 Daily Scoop: No Deal Yet
By Tue, Oct 15, 2019
Hey Scoopers, how was your first day after Friday’s mini-deal between the U.S. and China? Based on the stock market’s action, everyone was already done partying. The stock market barely budged as people started asking where is the deal? Can we read the agreement?
Other than that, some weed investors breathed a sigh of relief, while teledentistry investors sat and watched their unicorn falling out of California regulators’ favor.
Oh and by the way, if you had a dream to take your electric bike on an environmentally-friendly road trip, you have to wait a bit longer.
To read those stories and more, scroll down to the “Overall Market,” “What’s Up?” and “What’s Down?” sections.
MARKETS
- U.S. markets: All three indices finished Monday without barely moving. Scroll to the “Overall Market” section to learn more.
- Cryptocurrency: The new week didn’t bring much action to the cryptocurrency market. Bitcoin’s price continued to hover in mid $8,000 per coin range.
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OVERALL MARKET
The trade deal status
What happened on Monday?
All three indices remained almost flat. The biggest move was only -0.14% by the S&P 500 index. Initially, investors had a good Friday celebrating the mini trade agreement between the U.S. and China. Having a chance to rest through the weekend, everyone is now asking where is the deal?
Was there a deal?
President Trump certainly thought that last week’s mini-agreements meant a big deal. However, as we started the week, people are realizing there was nothing signed on paper. The previously planned tariffs are still on the table, and more talks are expected.
To be honest, a trade agreement is not an easy discussion. It takes more than two days and a dozen tweets. Typically, a trade agreement/disagreement takes years to settle. The chances are that the U.S.-China discussions will go on for a long time before we see any concrete agreement on paper. For now, we should all get ready for the new quarterly earnings report season. The first batch of reports is expected this week. Get ready to check in with your favorite companies as they share their progress in the latest quarter. Here we go, again!
WHAT’S UP
Some good news for weed investors
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So, what happened?
Investors in CannTrust (Ticker: CTST) breathed deeply on Monday after the company’s board shared some good news. Although CannTrust has to get rid of close to $80 million worth of inventory and biological assets, it now has a plan to regain its production license. The stock price jumped more than 16% on the news and pushed the stock price above $1 per share.
It’s good news because it can still stay listed without turning into a penny stock. The company was once a fast-growing marijuana producer with interesting patents and plans for rapid expansion. But, an ex-employee turned into a whistleblower and warned regulators about the company’s production in unlicensed facilities. From then and there, the stock has been in a rapid fall. One CEO departure later, it looks like the board is now taking control of the situation.
WHAT’S DOWN
California strikes again.
So, what happened?
Shares of SmileDirectClub (Ticker: SDC) that was once celebrated as a dentistry market disruptor by private market investors got hammered again on Monday. This time, California governor signed a new bill into law to regulate what’s known as the teledentistry industry. In a statement, SmileDirectClub shared its frustration with unnecessary regulatory restrictions. It also focused on the fact that the new law doesn’t prevent SDC from operating in California. Despite the company’s statement, investors ran for the hills once more, and the stock price fell approximately 12% on Monday.
WATER COOLER
Electric bikes didn’t have a good start.
So, what happened?
A few years ago, Harley-Davidson (Ticker: HOG) announced the launch of its electric bikes. Investors rumbled (ahem). People asked themselves, what’s not to like? Big, beautiful, all-American bikes? Cool. Open road, freedom, and happiness? Give me some of that. Good for the environment, and no need to stop for gas? Shut up and take my money!
However, the actual launch of the electric Harley-Davidson bikes didn’t pan as dreamy as investors have pictured. Also, we might have exaggerated investors’ excitement a bit in the previous paragraph. Nevertheless, Harley-Davidson had to stop selling its new electric bikes not too far from its initial launch. There is a problem with the charging plugs and you can’t plug it into the wall in your garage just yet. It looks like your dream for an environmentally-friendly road trip has to wait just a bit longer.
About the Author
The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card
