Stocks rose Wednesday as optimism over a U.S.-Canada trade deal increased. The Dow Jones Industrial Average (DJINDICES:^DJI) posted a moderate gain, and the S&P 500 (SNPINDEX:^GSPC) set a record high.

Today's stock market

Index Percentage Change Point Change
Dow 0.23% 60.55
S&P 500 0.57% 16.52

Data source: Yahoo! Finance.

Biotech continued its summer rally, with the iShares NASDAQ Biotechnology ETF (NASDAQ:IBB) jumping 1.3%. The price of crude oil appeared poised to regain the $70 level, rising 1.7% and pushing the energy sector higher; the SPDR S&P Oil & Gas Exploration & Production ETF (NYSEMKT:XOP) closed up 1.3%. 

As for individual stocks, Box (NYSE:BOX) fell despite reporting a strong quarter, and Tilray (NASDAQ:TLRY) soared after announcing sales that almost doubled since last year.

Rising line graphs.

Image source: Getty Images.

Investors grow wary about Box growth

Cloud storage company Box reported second-quarter results that beat expectations, but investors got spooked about slowing growth and sent shares down 10.9%. Revenue grew 20.6% to $148.2 million, edging out the analyst consensus of $146.5 million. Non-GAAP loss per share of $0.05 was a big improvement over last year's $0.11-per-share loss and $0.01 better than analysts were expecting. On a GAAP basis, Box lost $0.27 per share compared with a loss of $0.30 per share in Q2 of last year.

Deferred revenue grew 25% to $301.5 million and billings in the quarter were up 17% to $162.8 million, compared with 31% billings growth in the period a year ago.

Looking forward, Box guided to full-year revenue of $606 million to $608 million, which was in line with expectations, and Q3 revenue between $154 million and $155 million, which was a little lighter than the $154.9 million Wall Street had been thinking. What seemed to concern analysts on the conference call was the slowing in billings growth. Box officials said that there is now some seasonality to billings, and that Q4 should be stronger. Also, statements by the CFO that the company will hit a run rate of $1 billion in revenue in fiscal 2022 seemed to be less aggressive than earlier statements that the milestone could happen in late 2021. 

In was a good quarter for Box, but with high expectations for growth, investors seem hypersensitive to any indication that momentum might be slowing.

Tilray skyrockets in investor frenzy over pot stocks

Canadian cannabis producer Tilray reported quarterly results for the first time since its initial public offering last month, sending the shares up 20.6%. Revenue was up 95.2% over Q2 last year to $9.7 million and the company lost $12.8 million, or $0.17 per share, compared with a loss of $0.01 per share last year.

Tilray cultivates and sells marijuana and cannabis-based products into the medical marijuana market in 11 countries, and will sell recreational marijuana in Canada when it becomes legal in October. Total kilogram equivalents sold were up 97% to 1,514 kilograms, and average net selling price increased to $6.38, compared with $6.20 in the period last year. During the quarter, Tilray signed a supply agreement with Canada's largest pharmacy chain, and lined up agreements with seven Canadian provinces and territories to supply recreational pot after legalization.

Tilray stock has soared 265% since going public at $17, which has nothing to do with the fundamentals of the company and everything to do with investor hopes of getting rich from the budding marijuana industry. Diageo is reportedly looking for a partner for cannabis-laced drinks, and speculation that Tilray could be in the beverage giant's sights is helping the stock hit fresh highs almost daily.