Cannabis an 'increasingly bipartisan' issue as Trump signals support: analyst

By Steve Gelsi

Alliance Global Partners' Aaron Grey sees Donald Trump's weekend statement supporting cannabis as a 'step forward'

Cannabis stocks were mixed Tuesday in the first trading day for U.S. stocks after Republican presidential nominee Donald Trump signaled support for adult-use legalization in Florida.

The sector initially rose but then fell back as the broader equities market lost ground. Trump had already signaled a more permissive attitude towards cannabis last month, so his latest comments had mostly been baked into pot stocks already.

Marijuana has emerged as an "increasingly bipartisan topic" during this year's U.S. presidential campaign, Alliance Global Partners analyst Aaron Grey said in a research note on Tuesday.

Trump said Saturday on his Truth Social platform that an adult-use referendum on the November ballot in Florida is likely to get the required 60% approval vote "whether people like it or not."

Someone in Florida should not be a criminal when cannabis is legal is so many other states, Trump said in a posting on the social media site X..

"We do not need to ruin lives & waste taxpayer dollars arresting adults with personal amounts of it on them, and no one should grieve a loved one because they died from fentanyl laced marijuana," Trump said.

Legalization should be banned in public spaces to avoid the scent of marijuana, Trump said.

The AdvisorShares Pure U.S. Cannabis ETF MSOS rose 0.2%, while the Amplify Alternative Harvest EFT MJ moved lower by 0.9%.

Among individual stocks, Curaleaf Holdings Inc. (CURLF) fell 1%, Verano Holdings Corp. (VRNOF) dipped 1.5%, Cresco Labs Inc. (CRLBF) rose 1.5%, Trulieve Cannabis Corp. (TCNNF) (CA:TRUL) rose 4.8% and Green Thumb Industries Inc. (GTBIF) dipped 0.4%.

Ayr Wellness Inc. (AYRWF) rose 6.9% and Ascend Wellness Holdings (AAWH) fell 4%.

The statements from Trump did not amount to explicit support of cannabis legalization, but they marked a "step forward" from Trump's previous view on pot that was more limited to medical use, Grey said.

"Bigger picture, we believe this builds support for cannabis legalization as a bipartisan issue among politicians and voters," Grey said.

At last check 70% of American and 55% of Republicans support marijuana legalization, according to the most recent Gallup poll results.

Trump had said early last month that he was preparing a statement on cannabis in Florida and that he was starting to agree more with some pot reforms.

Democratic presidential nominee Kamala Harris said Trump made a "brazen flip-flop" on cannabis.

"Trump now suggests he is for legalizing marijuana - but as President, his own Justice Department cracked down on marijuana offenses," according to a statement from the Harris election camp.

While Trump's Attorney General Jeff Sessions attempted to clamp down on state-legal cannabis when Trump was in office, such a path appears to be less likely now because of support on both sides of the aisle for pot, Grey said.

Also read: Home Depot scraps marijuana drug tests for employees: report

-Steve Gelsi

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

09-03-24 1254ET

Copyright (c) 2024 Dow Jones & Company, Inc.