Recreational marijuana was legalized in Canada last October. The smoke signals soon arrive at Wall Street.
Two of the largest Canadian Canadian producers in Canada, Aurora Cannabis Inc.
and Canopy Growth Corp.
will release revenue reports in the coming days as retail from the first quarter of legitimate sales in the country. After reports of deficiency and general supply chain problems in Canada's newest industry, cannabis investors may look less green and more red by numbers, even though pot strains have already come closer to Earth.
Elsewhere, graphics chip supplier Nvidia Corp.
NVDA, + 0.51%
faces music after cutting its perspective twice, and becomes affiliated with equipment supplier Applied Materials Inc.
in testing the chip sector fluctuations during the week. PepsiCo Inc.s
report will serve as an introduction to the company's new CEO, and Activision Blizzard Inc.
takes the joystick after a meltdown from other video game publishers.
A total of 64 members of the S&P 500
SPX, + 0.07%
is on income slate, along with two Dow Jones Industrial Average
components: Pepsi-rival Coca-Cola Co.
KO, + 0.16%
and Cisco Systems Inc.
CSCO, + 1.05%
For cannabis companies, the first quarter of legal weed sales in Canada may be less about the pot and more about the paper. Companies like Aurora – which have investments in many other pot companies – are going to show losses on paper from the downturn in investment, while others may use maturation of pot plants to claim profits well before it is sold.
Once to other manufacturers, such as Tilray Inc.
report earnings, investors will get a fuller picture of how the legal leisure market is shaking in Canada.
Aurora Cannabis reports before the clock on Monday, while Canopy Growth reports after Thursday.
Nvidia has preannounced negative results for the holiday season, but the company's Thursday afternoon earnings call will mark management's First Discussion with the Investment World since the bad news. Expect questions about the extent of Nvidia's problems in China, the path of its new Turing products, and the potential for a rise in the data center. The company's return on investment plans and cost discipline will also be the focus of a significant reduction in turnover, according to Jefferie's analyst Mark Lipacis.
Nvidia Profit Preview: An additional shoe to release for beleaguered chip maker
Semiconductor equipment company Applied Materials, also reporting on Thursday, will follow in the footsteps of peers Lam Research Corp.
LRCX, [0.2459006] -0.24%
and KLA-Tencor Corp.
KLAC, + 0.11%
who both offered encouraging signals of a near-nearby recovery in a few weeks back.
But the question remains about the prospects for chip equipment companies. Evercore ISI's CJ Muse is wondering if investors have seen "last cut" in equipment building plans, or whether it's one on the way.
More videogame gloomy?
Activision Blizzard will be the last major video game publisher to report, and investors will find out if the company is suffering from the same issues as rivals Electronic Arts Inc.
EA, + 16.05%
and Take-Two Interactive Software Inc.