The Federal Reserve left interest rates unchanged Wednesday, but Chairman Jerome Powell said there was support for a cut later, and that was enough to give stocks a boost higher. The Dow Jones Industrial Average (DJINDICES:^DJI) and the S&P 500 (SNPINDEX:^GSPC) closed with small gains.
Today's stock market
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Adobe maintains strong momentum
Software specialist Adobe reported fiscal second-quarter earnings that beat expectations and shares jumped 5.2% to an all-time high. Revenue grew 25% to $2.74 billion, topping the $2.7 billion the company had said that it was expecting. Non-GAAP earnings per share grew 10.2% to $1.83, exceeding Adobe's guidance of $1.77.
Adobe's digital media segment, which includes the company's popular photography and digital video programs, posted revenue growth of 22% to $1.89 billion, with a 5.4% increase in annualized recurring revenue since last quarter. Growing mobile usage is a strong tailwind for the segment. Digital experience, which is more oriented toward business solutions in areas like advertising, analytics, and commerce, saw revenue jump 34% to $784 million.
The company's guidance for next quarter was less than analyst predictions for both the top and bottom lines, but the summer months are typically light for Adobe, and officials on the conference call were confident that its momentum will carry over into the second half, with expectations for a strong Q4.
CannTrust expands into the U.S.
Canadian marijuana producer CannTrust Holdings announced that it's entering the U.S. market by way of a joint venture to produce hemp for cannabidiol (CBD), and shares soared 8.9%.
CannTrust is partnering with Elk Grove Farming Company to get access to 3,000 acres of farmland in Southern California for the production of low-cost hemp with high CBD content. CannTrust and Elk Grove will each own 50% of the joint venture. CannTrust will process the plants and sell hemp-derived CBD products in the U.S. where it is legal, with commercial operations expected to start in 2020.
CannTrust, one of the largest marijuana producers in Canada, is increasing production capacity to meet strong demand for recreational pot in that country, but has also said that extracts are an important part of its growth strategy. In its most recent conference call, the company said it was in discussions with potential partners to help it enter the booming U.S. CBD market.