Dow 30 & Russell See Continuation But S&P 500 & Nasdaq Suffer Pullbacks on Tuesday

The markets ended mixed today as the sector rotation continued across the indices. On the positive side, the Dow 30 closed at 29,420.92 (+.9%) & the Russell 2000 closed at 1,737.01 (+1.88%) as the rotation of fortunes swung again to the energy sector which was up another 2.5% as oil pushed further afield closing at $41.37/bbl, +2.6%. The consumer staples sector added 2.0% while industrials added 1.8%, materials ended up 1.1%, & financials bumped up .7%. On the negative side, the S&P 500 closed at 3,545.53 (-.14%) & the tech heavy Nasdaq closed at 11,553.86 (-1.37%) as popular names caused the information technology sector to drop 1.9%, the consumer discretionary  to drop 1.1%, & the communication services  to end down .3%. The FAANGs ended mostly in negative territory as follows:  Apple (AAPL) ($115.97, -.3%), Amazon (AMZN) ($3,035.02, -3.46%), Alphabet (GOOG) ($1,740.39, -1.28%), Facebook (FB) ($272.43, -2.27%) & Netflix (NFLX) closed at $480.24/share ,+2.07%.  

The macroeconomic schedule produced a couple of reports worth mentioning as the NFIB Small Business Optimism Index report for October came in flat was at 104 & the September job openings report confirmed a rise to 6.436M.

EV manufacturer Tesla (TSLA) closed at $410.36/share, -2.59% & Chinese EV concern NIO Limited (NIO) finally pulled backed as it closed at $41.55/share down 5.61% after establishing yet another new all-time high of $45.29 yesterday. Leading provider of zero emission hydrogen engines and fueling solutions, Plug Power (PLUG), closed $20.01/share down 1.48% after after beating the street’s Q3 estimates yesterday. 

In the healthcare sector, Eli Lilly (LLY ) closed at $146.56, +3.0% after receiving emergency use authorization for its antibody treatment for the coronavirus. Also,  Atossa Therapeutics, Inc. (Nasdaq: ATOS), a clinical-stage biopharmaceutical company seeking to discover and develop innovative medicines in areas of significant unmet medical need with a current focus on breast cancer and COVID-19, announced blinded preliminary results from its Phase 1 clinical study using Atossa’s proprietary drug candidate AT-301 administered by nasal spray. AT-301 was found to be safe and well tolerated in this study at two different dose levels in both single and multiple dose forms over 14 days. AT-301 is being developed for at home use for patients recently diagnosed with COVID-19. There are currently no FDA-approved therapies to treat COVID-19 at home. Steven Quay, M.D., Ph.D., Atossa’s President and CEO stated, “We have completed all dosing in this study and we have now evaluated the blinded safety and tolerability data from all participants. There we no serious adverse events, no discontinuations, and only one subject of the 32 subjects in the study experienced adverse events that were considered moderate in severity and all other adverse events were considered mild. Our preliminary assessment is that our AT-301 nasal spray was safe and well tolerated in this study. These results support advancing this program into a Phase 2 study. We are in the process of preparing a pre-IND meeting request with the U.S. FDA which we plan to submit in the next 30 days.”

Precious metals prices recovered a little today. Silver prices closed a US $24.30/oz up .02 & gold prices closed at US $1,877/oz up 5. North American silver and gold producer Hecla Mining Company (HL) closed at $5.26/share (+1.35%). HL’s 52-week range is $1.40 – $6.79. Yesterday, Hecla announced Q3 2020 financial and operating results. Phillips S. Baker, Jr., Hecla’s President and CEO stated, “Because of our strong operating performance and higher prices, Hecla had record adjusted EBITDA, generated the most free cash flow in a decade and repaid our revolver in full. These accomplishments were achieved because of our workforces’ resiliency and our commitment to health and safety. With the Lucky Friday ramp-up ahead of schedule, the expected improvements at Casa Berardi, and our modest planned capital expenditures, we are well positioned to further strengthen our balance sheet, increase exploration activities, and pay our enhanced dividend.” Barrick Gold Corporation (GOLD) closed at $25.94/share down 3.57%. 

The 2-yr US treasury yield closed even at .18% while the 10-yr yield stayed pat at .96%. The U.S. Dollar Index strengthened closing at 92.81. 

TOMORROW

Tomorrow’s macroeconomic calendar will deliver the weekly MBA mortgage Applications Index report.

WATCH LIST

• Fate Therapeutics, Inc. (FATE) closed at $52.61/share +3.79% today after establishing a new-all-time record high of $52.97/share today.
  • Fate is a clinical-stage biopharmaceutical company dedicated to the development of programmed cellular immunotherapies for cancer and immune disorders.

• • Last week, Fate reported business highlights and financial results for the third quarter ended September 30, 2020. Scott Wolchko, President and Chief Executive Officer of Fate Therapeutics stated, “The clinical data across our iPSC product platform continue to solidify our conviction that multiple doses of iPSC-derived NK cells can be administered off-the-shelf in the outpatient setting, are well-tolerated, and can drive anti-tumor activity, including in combination with monoclonal antibody therapy. We have now expanded the scope of clinical investigation for FT516 to solid tumors as well as for FT596 to chronic lymphocytic leukemia after observing clinical activity in diffuse large B-cell lymphoma at the first dose level. In addition, we have initiated first-in-human investigation of the first-ever CRISPR-edited, iPSC-derived cell therapy FT538, which incorporates three engineered elements to enhance multiple mechanisms of innate immunity, in acute myeloid leukemia and multiple myeloma.”

• Shares of INVO Bioscience (INVO) are trading under the symbol INVOD post a recent 5/8 reverse split ad closed trading at $4.75/share as it prepares to qualify for a Nasdaq uplisting. 
  • INVO is a medical device company focused on creating alternative treatments for patients diagnosed with infertility and developers of INVOcell®, the world’s only in vivo Intravaginal Culture System. Industry forecasts suggest that only 1% to 2% of the estimated 150 million infertile couples worldwide are currently being treated. INVO’s mission is to increase access to care and expand infertility treatment across the globe with a goal of improving patient affordability and industry capacity. Since January 2019, INVO Bioscience has signed commercialization agreements in the United States, India, as well as parts of Africa and Eurasia and Mexico for the INVOcell device.

• • INVO recently announced that it has teamed up with Dr. Francisco Arredondo, MD, a respected and experienced board certified reproductive endocrinologist, and Dr. Ramiro Ramirez, MD, a physician and owner of several successful enterprises in Mexico, to establish a joint venture through its wholly-owned subsidiary INVO Centers, LLC, a Delaware limited liability company (“INVO Centers”), focusing on developing the Mexico market for INVOcell. The new jointly-owned operation, named Positib Fertility, S.A. de C.V. (“Positib Fertility”), is a Mexico registered company that will focus on establishing fertility centers dedicated to offering INVOcell, with the initial center to be located in the city of Monterrey, Mexico.

• Shares of NeuBase Therapeutics (NBSE) closed at $8.20/share, +1.23% after recently reaching a new 52-week high recently of $11.78/share.
  • NeuBase is developing the next generation of gene silencing therapies with its flexible, highly specific synthetic antisense oligonucleotides. The proprietary NeuBase peptide-nucleic acid (PNA) antisense oligonucleotide (PATrOL™) platform allows for the rapid development of targeted drugs, increasing the treatment opportunities for the hundreds of millions of people affected by rare genetic diseases, including those that can only be treated through accessing of secondary RNA structures. Using PATrOL technology, NeuBase aims to first tackle rare, genetic neurological disorders. NeuBase is continuing its progress towards developing treatment candidates in Huntington’s Disease (HD) and Myotonic Dystrophy (DM1) and is expected to release further data prior to year end 2020. 

• Shares of Summit Wireless Technologies, Inc. (NASDAQ: WISA) closed at $3.63 up 70.42% today on 130,030,106 shares of trading volume. Summit is a leading provider of immersive, wireless sound technology for intelligent devices and next-generation home entertainment systems and founding member of the WiSA Association. Today they provided an update for the third quarter ended September 30, 2020. They highlighted 45% Revenue Growth Posted for Q3 2020 Year-over-Year, more than 100% Revenue Growth Expected for Q4 2020 Year-over-Year & that their SoundSend Wireless Transmitter is set to expand TAM by 800 Million Smart TV’s. 

Economic Reports

• On Monday we did not receive any significant reports.
• On Tuesday, the NFIB Small Business Optimism Index report for October came in flat at 104 & the September job openings report confirmed a rise to 6.436M.

Investing & Inspiration

“Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.” — Albert Einstein

“Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results” — Warren Buffett

“The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett

“Thousands of experts study overbought indicators, head-and-shoulder patterns, put-call ratios, the Fed’s policy on money supply…and they can’t predict markets with any useful consistency, any more than the gizzard squeezers could tell the Roman emperors when the Huns would attack.” – Peter Lynch

“Investing puts money to work. The only reason to save money is to invest it.” – Grant Cardone

“You cannot save time for your future use however you can invest time for your future.” – John F. Heerdink, Jr. 

“Know what you own, and know why you own it.” – Peter Lynch

“Liquidity is only there when you don’t need it.” -Old Proverb

“If you want to be a millionaire, start with a billion dollars and launch a new airline.” – Richard Branson

“Fear incites human action far more urgently than does the impressive weight of historical evidence.” – Jeremy Siegel

“In investing, what is comfortable is rarely profitable.” – Robert Arnott

“Spend each day trying to be a little wiser than you were when you woke up.” – Charlie Munger

“The entrance strategy is actually more important than the exit strategy.” – Edward Lampert

“The rivers don’t drink their own water; Trees don’t eat their own fruits. The sun does not shine for itself, And flowers do not spread their fragrance For themselves. Living for others is a rule of nature” – Pope Francis

“It is impossible to produce superior performance unless you do something different from the majority.” – John Templeton

“An investment in knowledge pays the best interest.” – Benjamin Franklin.

“I believe the returns on investment in the poor are just as exciting as successes achieved in the business arena, and they are even more meaningful!” -Bill Gates

“Every portfolio benefits from bonds; they provide a cushion when the stock market hits a rough patch. But avoiding stocks completely could mean your investment won’t grow any faster than the rate of inflation.” – Suze Orman

“The tax on capital gains directly affects investment decisions, the mobility, and flow of risk capital… the ease or difficulty experienced by new ventures in obtaining capital, and thereby the strength and potential for growth in the economy.” – John F. Kennedy

“If all the economists were laid end to end, they’d never reach a conclusion. -George Bernard Shaw

“There are old traders and there are bold traders, but there are very few old, bold traders.”-Ed Seykota

“Let this scenario play out on its own, in its own fashion. As you watch it unfold, you will soon be grateful that you choose the peaceful path. Remember — those who live by the sword, die by the sword.”

“As long as you enjoy investing, you’ll be willing to do the homework and stay in the game.” -Jim Cramer

“I rarely think the market is right. I believe non-dividend stocks aren’t much more than baseball cards. They are worth what you can convince someone to pay for it.” -Mark Cuban

“Michael Marcus taught me one other thing that is absolutely critical: You have to be willing to make mistakes regularly; there is nothing wrong with it. Michael taught me about making your best judgment, being wrong, making your next best judgment, being wrong, making your third best judgment, and then doubling your money.” -Bruce Kovner

“The policy of being too cautious is the greatest risk of all.” -Jawaharlal Nehru

“The only true test of whether a stock is “cheap” or “high” is not its current price in relation to some former price, no matter how accustomed we may have become to that former price, but whether the company’s fundamentals are significantly more or less favorable than the current financial-community appraisal of that stock.” -Philip Fisher

“I learned to avoid trying to catch up or double up to recoup losses. I also learned that a certain amount of loss will affect your judgment, so you have to put some time between that loss and the next trade.” -Richard Dennis

“The four most dangerous words in investing are: ‘this time it’s different.” -Sir John Templeton

“Money doesn’t make you happy. I now have $50 million but I was just as happy when I had $48 million.” -Arnold Schwarzenegger