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The Dow Jones Industrial Average fell over 100 points as markets digested Canada's sweeping legalization of recreation marijuana use on Wednesday (Oct. 17). The legislation has created a multibillion-dollar legal market for investors and is expected to foster the growth of a North America's cannabis industry.
The Canadian government will pardon all citizens who have been convicted of simple marijuana possessions charges. Roughly 500,000 Canadians have been convicted of simple pot possession charges, according to Campaign for Cannabis Advocacy. But now, those citizens will be able to receive a pardon, avoid the $631 fine, and avoid a three- to 10-year waiting process.
Here are the numbers from Wednesday for the Dow, S&P 500, and Nasdaq:
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Now here's a closer look at today's Money Morning insight, the most important market events, and stocks to watch.
Money Morning Daily Insight: First Ever Online Event for Cannabis Investors
On Tuesday, Oct. 23, at 1 p.m. (ET), former Speaker of the House John Boehner will join an esteemed panel to discuss how everyday Americans can make a lifetime's worth of wealth thanks to this "green gold rush." He'll show you how cannabis could become our next $1 trillion industry... every step to full legalization... and how the average American can make a FORTUNE from this explosive phenomenon. Click here to be automatically registered for this historic event, 100% free of charge.
The Top Stock Market Stories for Thursday
- With cannabis now fully legal in Canada, it's time for investors to look at the top weed stocks to watch in October 2018. Following Canada's big announcement, eight U.S. states will vote on ballot measures regarding marijuana in November. This U.S. industry could be worth a whopping $24.5 billion by then. Today, let's look at the top marijuana stocks and how you can get rich on this once-in-a-lifetime trend.
- South of the Canadian border, the U.S. Federal Reserve signaled yesterday that it plans to raise interest rates again in 2018. This would be the fourth interest rate hike of the year, pushing the U.S. dollar higher against the Chinese yuan and other global currencies. U.S. President Donald Trump has criticized the central bank's effort to raise rates in recent months. However, this morning, former Fed Chair Alan Greenspan said that previous presidents criticized central bank policies "all the time." Greenspan also said today that the current U.S. labor market is the tightest that he has seen in his lifetime.
Stocks to Watch Today: PYPL, AXP, BX, AMZN
- Investors are eyeing another busy day of earnings reports. PayPal Inc. (NASDAQ: PYPL), American Express Co. (NYSE: AXP), and Phillip Morris International Inc. (NYSE: PM) headlines today's roster of companies reporting third-quarter results.
- Blackstone Group LP (NYSE: BX) shares added 0.2% after the company reported earnings per share of $0.76, a figure that topped Wall Street estimates by $0.02. The asset manager also bolstered revenue in the process. Assets under management increased to a record $457 billion, a figure that is 18% higher than one year ago.
COUNTDOWN TO OCTOBER 23: Mark Your Calendar for the Biggest Cannabis Event of the Year - Click Here to Claim Your Spot
- Investors are asking questions about Amazon.com Inc. (NASDAQ: AMZN) CEO Jeff Bezos, who is also the owner of the Washington Post. Bezos has been silent about the disappearance of his newspaper's journalist Jamal Khashoggi. The Saudi Arabian journalist was reportedly murdered in a Saudi embassy in Turkey. However, CNBC reports that Amazon may be working on opening a data center in the Middle East and has been searching for a head of public policy in Saudi Arabia. Bezos had met with Saudi leaders in Seattle earlier this year, prompting speculation that this may be why Bezos has not made a public statement on the matter.
- Look for additional earnings reports from Intuitive Surgical Inc. (NASDAQ: ISRG), Alliance Data Systems Corp. (NYSE: ADS), Lindsay Corp. (NYSE: LNN), The Bank of New York Melon Corp. (NYSE: BK), PPG Industries Inc. (NYSE: PPG), Canadian Pacific Railway (NYSE: CP), and WD-40 Co. (NASDAQ: WDFC).
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.