Diamonds and Dogs
Constellation Brands (STZ) jumped 6% to a four month high thanks to beer sales and their investment in cannabis. Beer and wine sales at Constellation Brands led their industry in the fiscal year ending February. But when the company reported earnings this morning, the cash it made from booze was dwarfed by gains on its investment in the cannabis business Canopy Growth. While Constellation earned half a billion bucks on its alcohol operations in the quarter ending February, the stock market's enthusiasm for marijuana's added a $1.2 billion gain in the value of Canopy securities that Constellation owns.
Tesla (TSLA) had a bad day. The electronic car maker dropped 8% not far from a 52-week low after reporting a 31% decline in Q1 deliveries and said the results will negatively affect the company's Q1 net income. On a related note, a U.S. judge ordered the SEC and CEO Elon Musk to meet and settle their dispute over the next two weeks. The SEC had sought to hold Mr. Musk in contempt regarding an unchecked tweet pertaining to Tesla's operations.