HEXO - Stock Market News: HEXO Heads Lower; Spectrum Can't Stay Healthy
The stock market picked up some ground on Thursday morning, as investors looked to see whether the traditional Santa Claus rally would assert itself between now and the end of the year. Forecasts for 2020 are all over the board, but for now, market participants seem content to enjoy the big gains that 2019 brought. As of 11 a.m. EST, the Dow Jones Industrial Average (DJINDICES: ^DJI) was up 51 points to 28,567. The S&P 500 (SNPINDEX: ^GSPC) was higher by 10 points to 3,233, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) picked up 33 points to 8,986.
There wasn't a huge amount of stock-specific news on the day after the Christmas holiday, but a few companies did see their shares move sharply. HEXO (NYSE: HEXO) suffered a big decline on its announcement that it'll need to raise more money, while Spectrum Pharmaceuticals (NASDAQ: SPPI) saw an even larger drop following bad news with one of its pipeline treatments.
Shares of HEXO fell almost 20% after the Canadian cannabis company announced that it would do a secondary offering of stock. Given how poorly it and the rest of the marijuana stock industry has performed in 2019, investors weren't happy at the timing of the move, even if they understand the need for it.