Well, we got it, folks. Yes, the Fed met again today and voted 7-3 to raise interest rates for the second time this year by another .25 basis points to 1.75-2%. This move was as the market had widely expected. President Trump also continued to tell the Fed tht they have it all wrong stating “Jay Powell and the Federal Reserve Fail Again.” He would like them to slash rates even further. The Fed also is reported to be split regarding their wishes to cut further this year or not.
The four indices that we mainly follow split 50/50 at the close wit the S&P 500 bumping up 1.03 points or .03% to end the session above the 3k level again at 3,006.73. The Dow added 36.28 points closing at 27,147.08 up .13%. The tech-heavy Nasdaq closed at 8,177.39 down .11% or 8.62 points. The Russell 2000, the small-cap stock market index representing the bottom 2,000 stocks in the Russell 3000 Index closed lost 9.95 points down .63%.
Treasury yields drew closer in line today. The 2-yr Treasury yield closed at 1.75% up .02 & the 10-yr yield finished higher at 1.29% down .03.
The U.S. Dollar Index closed at 98.55 up .3% on the day.
Oil prices pulled back for the second straight day closing at $58.07/bbl down by 2.2%. The energy sector was off .4%. Chevron (CVX) closed at $124.18/share up .23%, Exxon (XOM) closed at $72.82 down by .48%. Occidental Petroleum (OXY) closed at $44.62/share down by 1.17%.
Gold prices closed at $1503.9/oz. Silver closed at $18.00/oz. Hecla Mining Company (HL) closed at $1.89/share off 3.575 on the day. First Majestic Silver (AG) closed lower at $9.63/share down 1.73%.
Volatility bets pulled back again today. The CBOE Volatility Index (VIX) closed at $13.95/share down 3.29% or $.49/share. The 2x leveraged ETF TVIX closed at $12.57/share down 6.12% or $.82/share and traded tightly between $13.39 and $13.82 today.
On Monday, we received the Empire State Manufacturing Survey for September which showed that it had moved down to 2.0 from August’s reading of 4.8.
On Tuesday, we received the Industrial production report which rose .6% month/month in August a better than expected stronger than expected result while total capacity utilization came in at 77.9%. The NAHB Housing Market Index for September was to have moved higher coming in at 68 compared to August when it came in at 67.
On Wednesday, we discovered that total housing starts jumped 12.3% month/month in August ending at a seasonally adjusted annual rate of 1.364M units. Total permits also were found to risen significantly by 7.7% to 1.419M. The weekly MBA Mortgage Applications Index dropped by .1%.
The S&P 500 healthcare sector closed at 1054.84 up .01%. UnitedHealth (UNH) closed down .82% closing at $230.61/share, Walgreens Boots Alliance (WBA) closed at $54.41/share down .78% & Cigna (CI)lost .66% closing at $160.44/share.
INVO Bioscience, Inc. (IVOB) ended the day at $.2650/share. Daily trading volume continues to rise in concert with their announcing progress after their exclusive U.S. partnership with Ferring Pharmaceuticals, a leader in the reproductive health industry was announced in Q1-2019. Ferring has committed to providing the necessary sales and marketing resources to more fully develop the market in the United States. There are countless couples not able to receive reproductive treatments today, and Ferring can be instrumental in addressing the unmet needs of this cohort. Ferring has the industry experience, relationships and the marketing capabilities to successfully embed the INVOcell in clinics throughout the country. IVOB is a medical device company, headquartered in Sarasota, FL 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 is FDA cleared and that enables egg fertilization and early embryo development in the woman’s vaginal cavity.
Recently, INVO Bioscience (IVOB) announced that revenues for the quarter totaled $658,638 compared to $110,210 in the second quarter of 2018, an increase of 498%. Revenue growth was driven primarily by increased product sales in the U.S. as shipments to Ferring were above expectations outlined in May 2019 as they began to increase their marketing activities. On January 14, 2019, the Company closed an exclusive U.S. licensing agreement with Ferring International Center S.A. the parent Company of Ferring Pharmaceuticals U.S. to commercialize the INVOcell™ system for use in the treatment of infertility. As part of the U.S. licensing agreement, the Company received a $5 million one-time milestone payment, with the ability to receive an additional $3 million upon obtaining a label enhancement from the U.S. Food and Drug Administration. Read Complete Story.
The Ishares Nasdaq Biotechnology ETF (IBB) moved down .71% to close at $104.44.
Atossa Genetics (ATOS), a Seattle-based biotech firm developing novel therapeutics and delivery methods to treat breast cancer and other breast conditions closed at $2.01/share flat again today after hitting a high of $2.05 today. The average daily trading volume is 408,937 shares per day and reported Q2 financial results & company update today. Yesterday Atossa announced that all participant activities have been completed in its Phase 1 clinical trial of a new proprietary modified-release oral tablet form of its Endoxifen. This is the next generation of oral Endoxifen following the successful clinical studies of the capsule form of the company’s oral Endoxifen. Steven C. Quay, Ph.D., M.D., CEO, and president of Atossa, commented: “We are very pleased that this study enrolled so quickly, with all 24 participants enrolled and dosed over the past six weeks. This is a very important study for Atossa as we plan to use the new modified-release oral tablet in our upcoming Phase 2 study to reduce breast density. We expect to report preliminary results from the Phase 1 study in the next 30 days and then move forward with the Phase 2 study in the fourth quarter. Ultimately, the goal of the modified-release aspect of the drug is to create more even uptake of the drug which we believe may reduce side effects and improve efficacy.” The Phase 1 study is being conducted in Australia. The objectives of the study are to assess safety and tolerability and to ascertain the pharmacokinetics of the tablet. The study is randomized, double-blinded and placebo-controlled with both single and multiple-doses (daily for 14-days) in two groups with a total of 24 healthy female volunteers. Atossa’s oral Endoxifen capsule served as the comparator.
Atossa presented last week at the Rodman & Renshaw Conference in NYC and published their updated presentation that included their near term milestones on page 23. It includes a milestone regarding their Oral Endoxifen Phase 1 trial where they expect to reveal their “results from Phase 1 study of the new modified-release tablet” this month.
Apple (AAPL) closed at $222.770/share up .94%, Alphabet (GOOG) closed at $1232.41/share up .27%, Facebook (FB) closed at $188.14/share up .03%, NVIDIA (MVDA) closed at $179.98/share down .60%, & Netflix (NFLX) closed at $291.56/share down by 2.36%.
Day or Short Term Trading Update
Our recent buy of Bloom Energy ( BE) at $5.06/share and $4.99/share paid off as it surged to $5.70 about a 14% move. We were seeking a swing back up to at least the high $5’s after its recent beat down and we got it.
We identified San Jose, CA’s Zscaler (ZS), a cloud-based web security provider, as a bounce play after it got slammed earlier this week after being downgraded and closed down at $70.80. ZS popped then to $74.51/share for an approximate 5% gain.
The Hain Celestial Group, a leading organic and natural products company with operations in North America, Europe, Asia & the Middle East, was also identified as another bounce play. HAIN shares closed trading at $18.36/share Wednesday (Aug. 21st) after a recent analyst downgrade and a simultaneous price drop from the $22 level that seemed to be triggered by fears surrounding The Brexit issue and timeline. Thursday, Aug 22nd, HAIN shares rose to an intraday high of $18.99 and then closed at $18.91 for 3% move.
On Aug. 28th The Hain Celestial Group (HAIN) announced the completion of the divestiture of its Tilda to Ebro Foods for $342 million in cash. We reentered HAIN stock at $18.30/share and it moved to an intraday high of $18.66 prior to closing at $18.36/share up .99%. HAIN is due to report Q4 and fiscal year 2019 earnings tomorrow at 8:30 am eastern. Post that HAIN hit an intraday high of $19.69/share and closed at $19.03 up 3.65%. This was another successful exit.
Thursday, Aug. 29th we also entered into Acasti Pharma Inc. (ACST) at $1.81/share for a momentum trade and targeting minimal price target of $2/share and then added additional shares at $1.79. ACST is a biopharmaceutical innovator focused on its prescription drug candidate CaPre for the treatment of severe hypertriglyceridemia (HTG). ACST shares closed today’s trading at $1.99/share up 10.56% after hitting an intraday high of $2.03 on trading volume of 2.04M shares. B. Riley initiated coverage with a BUY Recommendation and a Price Target of $7.75/share recently. We locked in our quick trade at $2/share recently for ~11.5% gain. We will look to reenter ACST if we see a significant pullback.
We added more Atossa Genetics (ATOS) today $2.02/share scaling the position that we started at $1.97/share – $2.12/share. Atossa presented at the Rodman & Renshaw Conference in NYC last week and used their updated presentation that included their near term milestones on page 23. It includes a milestone regarding their Oral Endoxifen Phase 1 trial where they expect to reveal their “results from the Phase 1 study of the new modified-release tablet” this month (September 2019.) The stock has traditionally moved well around these events and closed today’s trading at $2.3 down 3.33% after hitting $2.18 on 333,115 shares of trading.
We traded Stoke Therapeutics, Inc. (Nasdaq: STOK), a biotechnology company that is pioneering a new way to treat the underlying cause of genetic diseases by precisely upregulating protein expression, overnight as it closed at $28.80 down close to 14% on Tuesday and then bounced in early morning trading to $30.60/share on Wednesday.
Our recent addition of Clearside Biomedical (CLSD) that we initiated a position in at $.67/share was closed out at $.77/share for ~16.7% gain.
We also added Endurance Interantional Group Holdings, Inc. (EIGI) after it took a 20% plus hit it suffered in the markets today and we could not pinpoint as to why. Our buy yesterday was at $4.50/share and the stock rose to a high of $4.72 today. Yesterday EIGI also hit a low of $4.16/share today & we successfully traded it when we bought at $4.22 and sold it with a couple of hours at $4.49. The 52-week range is $4.13 – $10.06. Waltham, Mass. based EIGI is the owner of Constant Contact an experienced leader in online marketing. We purchased another position in EIGI at $4.23/share today and the stock closed at $4.19.
We add a small position in McDermott International, Inc, (NYSE: MDR) today at $2.49 after the stock fell as much as 72% after announcing that they had hired a turnaround consultant (AlixPartners) and was briefly halted. They also updated their guidance down, however, their CEO offered the following “Even so, we expect to see a sharp improvement in the company’s operating income by the fourth quarter of this year, as we build momentum heading into 2020.” MDR is a premier fully integrated provider of technology, engineering, and construction to the energy industry.
We also added Onconova Therapeutics (ONTX), a Phase 3-stage biopharmaceutical company developing cancer treatments. We have entered at $1.80/share after the ONTX pulled the ripcord on their proposed public offering as the stock had dropped significantly went down to $1.65/share.
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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