Most of the stock market posted solid gains on Monday after Canada joined the U.S. and Mexico in forging a renewed regional trade agreement. The Dow Jones Industrial Average quickly got out to a more than 200-point gain early in the session, as investors in many of the manufacturing companies that make up the Dow's 30 components have been especially nervous about the recent Trump administration strategy of imposing tariffs and threatening to end long-standing agreements. Interestingly, small-cap stocks lagged behind their megacap counterparts, sending the Russell 2000 index to a substantial loss. But some companies saw their shares soar on encouraging news. New Age Beverages (NBEV), Euronet Worldwide (EEFT -2.30%), and Tilray (TLRY) were among the best performers on the day. Here's why they did so well.
A new age for drinks
Shares of New Age Beverages soared 67%, climbing back toward their all-time high set last month as the appetite for cannabis stocks got a shot in the arm from improved relations between the U.S. and Canada. New Age has sought to stay ahead of the latest trends in the beverage industry, offering items like kombucha and energy drinks, but what's gotten the attention of marijuana investors is New Age's intent to launch a line of drinks containing cannabidiol, one of the chemicals found in marijuana. Investors will have a better idea exactly what New Age has in mind within the next week or so, with the launch scheduled then. Until then, shareholders can expect continued volatility for New Age stock.
Image source: New Age Beverages.
Euronet gets some help from a friend
Euronet Worldwide stock jumped 15% after a major payment processing network company made it easier for it to consider adding new services for its customers. The provider of electronic payment and transaction processing solutions learned late last week that Visa (V -1.70%) would make it possible for Euronet to do a wider set of transactions at automated teller machines internationally, including the allowance of dynamic currency conversion and permitting shared deposits, transfers between accounts, changes of personal identification numbers, and summary account statements. Euronet said that Visa's move could add roughly 10% to its projections for full-year 2019 earnings, and investors have high hopes that the company can use these developments as a stepping stone to an even broader expansion of its business.
Tilray is getting ready for Oct. 17
Finally, shares of Tilray gained 15%. The Canadian cannabis manufacturer said that its High Park Farms subsidiary had gotten a license from health regulator Health Canada to sell recreational cannabis, a key approval in advance of the opening of the Canadian market in just over two weeks. There's still a lot of controversy surrounding whether Tilray's big gains since its IPO just a few months ago are warranted, especially given the stock's limited number of outstanding shares and the appetite among investors for any investment related to marijuana. However, after plunging by two-thirds from its all-time highs in the span of just a few days, Tilray has quietly jumped by more than 60% in just over a week's time.