President Donald Trump is expected to direct his administration to move to reclassify marijuana as a less dangerous drug, according to people familiar with the matter, a move that could represent one of the biggest shifts in US policy toward cannabis in decades.
Cannabis stocks surged. Tilray up 24%; Canopy Growth up 21%; SNDL up 16%; Aurora Cannabis up 15%; VFF up 3%.
Trump has discussed the idea with marijuana industry executives, Health and Human Services Secretary Robert F. Kennedy Jr. and Centers for Medicare & Medicaid Services Administrator Mehmet Oz, the people said.
A White House official said no final decisions have been made on rescheduling. The Washington Post reported earlier on the plans.
Cannabis is currently labeled a Schedule I drug, putting it in the same category that includes substances like heroin and LSD, categorized as having no medical use and a high potential for abuse. Trump is weighing pushing to reclassify it to a Schedule III drug, according to the people, which would move it to a tier for substances seen as having a lower potential for dependency — on the same level as ketamine, Tylenol with codeine, as well as anabolic steroids.
Reclassification would make it easier to buy and sell cannabis, delivering a major victory for companies and investors in the sector as well as patients who use medical marijuana. Cannabis companies have been lobbying for reform in Washington and a reclassification decision could ease tax burdens and obstacles to banking services, help draw more mainstream lenders and investors and bolster opportunities for medical research.
Lululemon Athletica said that CEO Calvin McDonald was leaving the company without a replacement and raised its annual profit forecast, sending shares up about 10% in premarket trading on Friday.
Lululemon now expects annual profit between $12.92 and $13.02 per share, compared with previous expectations of $12.77 to $12.97 apiece, while it also raised its annual sales target.
It now sees a $210 million hit to its income from operations in 2025 due to tariffs, and reiterated its expectation for annual operating margin to decrease by about 390 basis points.
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