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Renewable energy, cannabis stocks top losers as election results leave Wall Street hanging

Renewable energy and cannabis-related stocks, tipped to gain under a Joe Biden administration, were among the hardest hit on Wall Street on Wednesday. Photo: EPA-EFE/JUSTIN LANE

Renewable energy and cannabis-related stocks, tipped to gain under a Joe Biden administration, were among the hardest hit on Wall Street on Wednesday. Photo: EPA-EFE/JUSTIN LANE

Published Nov 4, 2020

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INTERNATIONAL - Renewable energy and cannabis-related stocks, tipped to gain under a Joe Biden administration, were among the hardest hit on Wall Street on Wednesday, as traders adjusted to overnight results that left the presidential election hanging in the balance.

Tech stocks were the initial big winners as President Donald Trump won the key states of Florida and Ohio and confounded earlier poll readings in others, quelling the expectations of some market participants of a swift Biden victory.

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Following are major movers as traders and investors in New York's main stock indexes digested the results. Overall, futures for the Nasdaq 100 NQcv1, Dow 1YMcv1 and S&P 500 EScv1 were trading in positive territory after swinging sharply overnight.

ENERGY

Traditional energy companies, which could enjoy a lighter regulatory and tax environment under a second term for Trump, rose, with the SPDR S&P Oil & Gas Exploration & Production ETF up 2.3 percent.

Chevron gained 0.6 percent, while shares in Exxon rose 1.8 percent.

Stocks of solar energy-based firms, which had soared in anticipation of Biden and the Democrats faring well, fell. The Invesco Solar ETF dropped 3 percent after climbing more than 40 percent since September lows.

Another instrument representing the developing sector, the iShares Global Clean Energy ETF, fell 2 percent.

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MARIJUANA

Major cannabis producers surged after the vice presidential debate, when vice-presidential candidate Kamala Harris said marijuana would be decriminalized at the federal level under a Biden administration.

The ETFMG Alternative Harvest slipped 1.9 percent, putting it on track for its worst day in nearly two months.

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Shares of cannabis producers Tilray, US listings of Canada's Canopy Growth, Cronos and Aurora Cannabis, dropped between 3 percent and 6.3 percent.

TECHNOLOGY

Big tech companies, which have benefited from Trump's softer stance on regulation and anti-trust policies as well as a tax cut that targeted U.S. big business, rose, with the Invesco and Technology Select Sector SPDR Fund both up 2.3 percent.

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Microsoft, Intel and IBM rose between 0.4 percent and 2.2 percent, while the FAANG stocks Facebook, Apple, Amazon, Netflix and Google gained around 2.3 percent each.

PRIVATE PRISON OPERATORS

Geo Group and CoreCivic jumped 1.9 percent and 6.5 percent, respectively, before the bell.

They had been pressured in recent months as Biden, who has committed to ending the federal government’s use of private prisons, took a sizeable lead in the polls.

REUTERS

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