“2% For Everyone” Vista Partners Daily Market Recap 6/4/19

By John Heerdink LinkedIn

Wow! It is amazing what 24 hours of time, a new belief that the markets were oversold and a few interest rate adjustment comments from the Fed can do for the markets.  We had our best day in the markets since January this year as the markets moved 2% or higher across the board. Everyone is apparently brilliant again as they were making money as valuations swelled significantly at least for the day.  The S&P 500 ended the session up 2.14% at 2803.27. The Dow added 512.40 points up 2.06% closing at 25,331.18 while the tech-heavy Nasdaq rushed up 2.65% closing at 7527.12 up 194.10 points & the Russell 2000, the small-cap stock market index of the bottom 2,000 stocks,  was up nicely by 2.62% and closed at 1508.56 up 38.58 points.

Fed Chair Powell & Chicago Fed President Evans confirmed that both trade uncertainty & low inflation levels remain a concern and could cause the Fed to act if necessary to keep the market on its side to ensure economic expansion.  It was not confirmed that there would be an interest rate cut but the markets seemed to take it as a given and we were off to the races. Our trade war worries were laid to the side for this session.

The tech giants that were hit with the antitrust stories yesterday were up across the board and seemed to charge the balance of the market as they represent major components.  Amazon (AMZN) jumped 2.18%,  Alphabet (GOOG) was up 1.62%, Apple (AAPL) rose 3.66% & Facebook (FB) got back 2.04%. The balance of the tech sector lifted for the most part. Intel (INTC) glided up 3.06% closing at $44.79/share. Shares of Microsoft (MSFT) closed higher at $123.16 up 2.77%.  Surprisingly, Uber Technologies (UBER), the ride-sharing company closed higher at $42.75 up 3.64% as it rose higher at the end of trading today. Investors continue to react positively to last week’s earnings report that confirmed that it did not lose as much as expected and their bookings are seeing double-digit increases. They also received a number of firms that initiated a Buy rating. Could we see the Uber’s stock head north of its recent IPO price of $45/share for the first time? It does seem to be getting a little easier to believe…

Treasury yields fell again. The 2-yr yield ended up at 1.88 & the 10-year Treasury note closed down at 2.12%.

The US Dollar Index was off another .1% at 97.10 and hs ow dropped .9% in the last two trading sessions.

Oil prices bounced by .5% &  closed at $53.51/bbl. Dow 30 energy participants Chevron (CVX) closed up at $117.30 or 1.13% & Exxon (XOM) closed down at $73.59 up 2.38%.

One key economic point came across today as Factory orders were reported to have declined .8% month-over-month in April.

Volatility to the upside was strong today with the upward movement of the markets. The CBOE Volatility Index (VIX) closed at $16.97 & down .10.02%. It traded between $16.97 – $18.74. The 2x leverage ETF TVIX also closed lower too at $23.47 down 9.90% and traded between $23.36 and $25.36 today.

Dow 30 components & the world’s leading manufacturer of construction & mining equipment Caterpillar (CAT) closed at $122.08 up 1.19%.

Pharmaceutical giant Merck & Co, Inc. (MRK) rose to $81.08 up 1.02%.

Entertainment giant Disney (DIS) closed at $134.82 up 1.77%. See our latest story on Disney: Will Georgia’s Abortion Law “Force” Disney To Stop Filming In The State?

Home Depot (HD) flew up 3% closing at $195.25.

Community Health Systems, Inc. (CYH) one of the largest publicly traded hospital companies in the US hit an intraday high of $2.98/share & a low of $2.82 today and closed the day at $2.94 up 5% on 1.8 million shares of trading. More insider buying occurred recently as Michael Dinkins bought shares at $3.168/share on 5/28/19 according to the latest Form 4 filed at SEC.gov. Michael Dinkins has served on our Board of Directors since December 2017. Mr. Dinkins has served as president and chief executive officer of Dinkins Financial, a consulting firm that helps small businesses gain access to capital, since October 2017. See our story more details: INSIDER BUYING ALERT: Community Health Systems, Inc. (CYH) Director Michael Dinkins.

The Seattle-based biotech firm developing novel therapeutics and delivery methods to treat breast cancer and other breast conditions Atossa Genetics (ATOS) closed at $2.44/share as traded as high as $2.58. The average daily trading volume is 3.06 million shares per day.  Atossa CFO Kyle Guse presented at the LD Micro Invitational Conference today in LA.  The Maxim’s Group’s biotech analyst, Jason McCarthy, Ph.D., reiterated his ATOS buy rating recently with a $9/share 12-Month Target Price. See his update report which is called “Reports the Quarter, Endoxifen Programs Progressing, Data Updates Expected Over 2019.”

San Diego-based biotech Fate Therapeutics (NASDAQ: FATE) which is dedicated to the development of programmed cellular immunotherapies for cancer and immune disorders closed at $20.00/share on 448,302 shares of trading after establishing a new all-time intraday high last week of $20.02. The 52-week range is $8.64 – $20.65. Guggenheim Securities initiated coverage on FATE last week with a “Buy Rating” and a $25/share price target.

INVO Bioscience, Inc. (IVOB) ended the day at $.3097. IVOB is a medical device company, headquartered in Medford, Massachusetts, focused on creating simplified, lower cost treatment options for patients diagnosed with infertility. The company’s lead product, the INVOcell, is a novel medical device used in infertility treatment that enables egg fertilization and early embryo development in the woman’s vaginal cavity. IVOB reported progress yesterday after the markets close as it released its Q1 2019 numbers including revenues for Q1 2019 increasing by 82% and gave us a look into the progress expected in Q2 2019. Katie Karloff, Chair and Chief Executive Officer of INVO Bioscience, commented, “We expect 2019 to be a pivotal year in the history of INVO Bioscience.”

ReWalk Robotics Ltd. (RWLK) a leading manufacturer of robotic medical devices for individuals with lower limb disabilities, announced today that the U.S. Food and Drug Administration (“FDA”) has cleared the Company’s ReStore soft exo-suit system for sale to rehabilitation centers across the United States. ReStore is the only soft exo-suit with FDA clearance and is intended for use in the treatment of stroke survivors with mobility challenges. Stroke is a leading cause of disability, which affects approximately 17 million people worldwide each year (1), and as many as 80% of people who have had a stroke will suffer from gait impairments. RWLK closed trading at $3.32 up 5.4%. Afterhours trading shows it currently trading at $8.85 up $5.53/share up 166.57%.

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

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