Biden’s selection of Harris is ‘modestly positive’ for cannabis industry, but ‘negative for financial stocks,’ analysts say

Biden’s selection of Harris is ‘modestly positive’ for cannabis industry, but ‘negative for financial stocks,’ analysts say

Biden’s selection of Harris is ‘modestly positive’ for cannabis industry, but ‘negative for financial stocks,’ analysts say

In the wake of Joe Biden’s selection of Kamala Harris as his running mate, Wall Street analysts are offering predictions on what the pick could mean for some key industries if the Democratic duo wins the November election.

The choice by Biden as he aims to oust President Donald Trump from the White House is viewed as likely to affect the cannabis industry MJ, +0.63% and the financial sector XLF, -0.05%, as well as potentially energy XLE, +0.63% and Big Tech XLK, +2.25%.

The presumptive Democratic presidential nominee’s decision on his vice president is “modestly positive for cannabis as she is an advocate for legalization,” said Jaret Seiberg, an analyst at Cowen Washington Research Group, in a note. 

Harris, California’s junior senator, is a sponsor of legislation to decriminalize marijuana at the federal level — the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, Seiberg added. The Democratic-controlled House Judiciary Committee passed the MORE Act in November, but the bill hasn’t gotten anywhere in the Republican-run Senate.

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Published at Wed, 12 Aug 2020 16:13:48 +0000

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