Podcast: A $13 Billion Miss on Big Tobacco Stocks and Two Other Numbers You Need to Know

Numbers By Barron’s is a two-minute financial podcast with three vital numbers to start your morning. Available on iTunes, Stitcher, and wherever you get your podcasts-as well as on your Amazon Alexa smart speaker

Three numbers to start your day:

-from 2000 to 2014. Why? It sold out of tobacco stocks and banned investing in them.

But the biggest pension fund in the U.S. doesn’t seem to have a problem with pot stocks.

The fund’s third-quarter filing shows a small stake in pot stock Tilray. What’s more. Calpers’ staff recommended removing the ban on Big Tobacco in 2016. Could that mean Marlboro owner Altria will show up in their portfolio? Given the pension funds’ latest position in pot, Altria’s new stake in cannabis, might look an enticing proposition.

Under Armour Nike

-but maybe not for long.

The athletic-wear company’s stock plunged as management announced sales growth projections in North America for the next five years.

Investors appear skeptical that Under Armour can turn things around. That’s in part because athleisure is on the rise, while Under Armour’s strength-performance wear-is not.

-think Berkshire Hathaway, Bank of America, JPMorgan Chase. The group has had abysmal performance this year.

Have they hit bottom ? Valuations look cheap, but the sector’s weighting might be a more useful indicator, according to DataTrek Research. Its weight in the S&P is near June 2000 lows, so perhaps the group will bounce back.

Things could get worse, the sector could shrink to a sliver of the S&P, like did in 2009. If so, that could be bad news for the market.

Numbers by Barron’s is a new daily podcast. Find out more here.

This episode was hosted by Crystal Kim.

Write to Crystal Kim at crystal.kim@barrons.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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