Altria Stock Soars on Fed’s E-Cigarette Crackdown

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Altria stock was on the rise Wednesday following news that the U.S. Food and Drug Administration (FDA) is cracking down on e-cigarette use.

Altria Stock Soars on Fed's E-Cigarette Crackdown

The news that has Altria (NYSE:MO) stock up today is specifically in connection to e-cigarette use in teens. The organization notes that it has seen a strong increase in use of the products with teens. The government agency has gone so far as to call the issue an “epidemic.”

As a result of this problem, the FDA says that it will be working to stop retailers from selling e-cigarettes to those that are underage. It has been sending out notices to several companies and issuing fines to retailers as part of this effort.

“I’ll be clear. The FDA won’t tolerate a whole generation of young people becoming addicted to nicotine as a tradeoff for enabling adults to have unfettered access to these same products,” FDA Commissioner Scott Gottlieb said in a statement.

The push to stop teens from using e-cigarettes may be giving investors hope that the FDA will not focus as much on tobacco companies. This could be why Altria stock is up today. However, the FDA says it is still committed to reducing the level of typical smokers in the U.S.

The FDA is specifically targeting five e-cigarette companies with its efforts. It is requiring them to provide plans on how they will stop selling e-cigarettes to underage customers within 60 days. One of these companies, MarkTen, belongs to Altria.

MO stock was up 6% as of Wednesday afternoon, but is down 15% year-to-date.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/09/altria-stock-up-on-fed-e-cig-crackdown/.

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