Cannabis stocks reversed their fortunes Tuesday after a mostly weak performance Monday that saw Aurora Cannabis (ACB - Get Report) , Canopy Growth (CGC - Get Report) and other names end sharply lower.
CGC advanced 2.2% to $22.72 after losing 3.1% Monday, while ACB was changing hands at $4.15 -- up 0.9% -- after shedding 6.5% a day earlier.
Other stocks in the sector that continued to pull back included Green Organic Dutchman (TGODF) -- down 4.4% Tuesday after a 7.1% Monday slide -- and CannTrust (CTST - Get Report) , which lost 3.7% Tuesday on top of a 1% pullback Monday.
Cannabis stocks apparently fell on Monday because Canadian cannabis company Sundial (SNDL) was reportedly the subject of a class-action lawsuit. The company allegedly failed to disclose that a customer returned 554 kilograms of cannabis because it allegedly contained mold and bits of rubber gloves.
SNDL fell 2.7% Tuesday to $4.40 after shedding 3.2% a day earlier, and any bad news for one company in the industry is usually bad news for all of them.
The sector also suffered from word that a New York University study into how e-cigarette vapor affected mice indicated that the smoke can potentially lead to lung cancer in humans.
While vape smoke laced with THC (the active ingredient in marijuana) wasn't studied, the findings could negatively impact sentiment toward the sector.