Tilray Stock Jumps 18% on Aphria Merger

John Divine

Stocks finished mixed on Wednesday, but two of the three major U.S. stock market indices ended higher, with the S&P 500 and the Nasdaq both advancing.

In the Federal Reserve meeting Wednesday, the central bank decided to keep rock-bottom interest rates where they are, as expected, but also vowed to continue buying $120 billion a month in bonds for the foreseeable future.

Many of the Fed's committee members expect rates to remain unchanged for at least three years.

The Dow Jones Industrial Average lost 44 points, or 0.2%, to finish at 30,154.

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Killer cannabis combo. Two Canadian cannabis giants, Tilray (ticker: TLRY) and Aphria ( APHA) are joining forces in a reverse merger, the companies said Wednesday. The new company will adopt the Tilray name, instantly position it for market dominance in Canada and allow the business to move more swiftly into the nascent U.S. market.

Tilray and Aphria collectively control 17% of Canada's retail marijuana market, although Aphria's CEO Irwin D. Simon said he was shooting for a 30% market share in time.

TLRY stock rose 18.6% on Wednesday.

Chipotle price target raised to $1,500. Stifel upgraded shares of the popular burrito chain from a "hold" to a "buy" rating, and raised the price target from $1,400 to $1,500 on Wednesday.

Digital ordering and delivery is a key catalyst behind Stifel's upgrade, as well as the company's success with so-called "Chipotlanes," or drive-through Chipotle ( CMG) stores. Analyst Chris O'Cull expects 5% to 7% expansion in its store count annually, with a high proportion of new locations having drive-through service.

CMG stock rose nearly 4% on Wednesday and is now up 67% in 2020.