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Stocks - Cannabis Stocks Jump Higher Midday; Beverage Stocks Also Up

Published 08/20/2018, 11:25 AM
Updated 08/20/2018, 11:25 AM
© Reuters.  Cannabis shares were broadly higher midday.

Investing.com - Cannabis stocks were rising in midday trading, with the sector continuing to gain momentum after a major investment announcement in Canopy Growth last week.

Canopy Growth (NYSE:CGC) stock rose about 7% at 11:25 AM ET (15:25 GMT).

The stock has been on a tear since beverage company Constellation Brands (NYSE:STZ), which owns Corona beer and Svedka vodka, said it would invest a further $4 billion in Canopy, Canada’s top cannabis producer.

Constellation invested about $200 million in the company last year.

That strength lifted other major stocks in the sector.

Aurora Cannabis (OTC:ACBFF) rose about 9% and Tilray (NASDAQ:TLRY) gained about 8%.

The beverage sector was also active after PepsiCo (NASDAQ:PEP) announced it would buy SodaStream (NASDAQ:SODA) for $144 per share, a deal valued at $3.2 billion.

Shares of SodaStream surged about 10% and PepsiCo gained about 0.1%.

Coca-Cola (NYSE:KO) was up about 0.25%, while Keurig Dr Pepper (NYSE:KDP) was off about 1%. And Monster Beverage (NASDAQ:MNST) was flat.

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