The markets initially popped to the positive side today reacting early to a CNBC interview that revealed that Treasury Secretary Steven Mnuchin had told CNBC that the “U.S. and China were close to a trade deal, and he’s optimistic that progress can be made during weekend talks between President Donald Trump and China’s Xi Jinping during the G-20 meeting. “We were about 90% of the way there [with a deal] and I think there’s a path to complete this.” After the reality of the situation sank in that nothing yet had been resolved, the markets proceeded to come back to earth for the most part and extended its wait for the G-20 Summit -President Trump – Xi Jinping meeting to happen at the end of the week.
The S&P 500 dropped 3.60 points and closed at 2,913.78 down .12% on the day. The Dow lost 11.40 points closing down .04% at 26, 536.82. The tech-heavy Nasdaq proved to be the lone positive mover ending up .32% closing at 7,909.97 up 25.25 points. The Russell 2000, the small-cap stock market index of the bottom 2,000 stocks in the Russell 3000 Index, ticked down .21% giving back 3.26 points closing at 1,517.78.Volatility bets closed a bit lower today with a relatively tight trading range. The CBOE Volatility Index (VIX) closed higher at $16.21 off .43% or $.07/share. It traded between $15.47 – $16.60. The 2x leverage ETF TVIX also closed lower at $19.95 down 1.72% and trading between $19.37 and $20.28 today. The US Dollar Index bumped up today .1% ending the day at 96.22 and ending a four-day decline.
Big tech stocks did fairly well too today. Amazon (AMZN) gained 1.04% closing at 1,897.83, Alphabet (GOOG) ticked down .6% closing at $1,079.80, Apple (AAPL) jumped 2.16% closing at $199.80, Facebook (FB) gave back .62% closing at $187.66. Shares of Microsoft (MSFT) gained .37% closing at $133.93 & Intel (INTC) flew up 2.86% closing at $48.19/share. Memory chip maker Micron (MU) skyrocketed a whopping 13.34% closing at $37.04 after it beat earnings and revenue expectations and guided up while leading the semiconductor industry higher. On the recent IPO front, Zoom Video Communications (ZM) moved higher by 1.53% closing at $86.33 & Uber Technologies (UBER), the ride-sharing company closed lower at $42.50/share & still below its recent IPO price of $45. Plant-based burger maker Beyond Meat (BYND) closed at $160.48 soaring another 6.56% after yesterday’s positive 6.82% move higher. Their meat is made of four main ingredients: water, pea protein isolate, canola oil & refined coconut oil and is meant to taste like “meat. Slack Technologies (WORK) which jumped into the public markets with their IPO last week flying up 48.5% from their offering price of $26/share closed today at $37.19 up 5.65%. Slack is a provider of a cloud-based workplace messaging app and went public via a direct listing avoiding paying fees to the relevant banks. Entertainment giant Disney (DIS) closed at $140.40 gaining .33%. Institutional alternative asset manager Och-Ziff Capital Management Group (OZM) closed at $21.13 down 1.22%. The 52-wk range is $8.60 – $23. OZM sports a healthy 5.65% cash dividend.
The health care sector took another hit overall today after President Trump signed another executive order earlier this week that is seeking to make health care costs more transparent to patients. The S&P 500 healthcare sector closed at 1061.90 off 1.25% but there were some bright spots. Change Healthcare Inc., a leading independent healthcare technology platform, announced today the pricing of its initial public offering of 42,857,142 shares of its common stock at a price to the public of $13.00 per share and its concurrent offering of 5,000,000 of its 6.00% tangible equity units (“Units”), with a stated amount of $50. The offerings are expected to close on July 1, 2019, subject to customary closing conditions. The completion of the Units offering is conditioned upon the completion of the common stock offering, but the completion of the common stock offering is not conditioned upon the completion of the Units offering. Change has granted the underwriters in the common stock offering a 30-day option to purchase up to an additional 6,428,571 shares of common stock. Change has granted the underwriters in the Units offering an option to purchase, within a 13-day period beginning on, and including, the date of the initial issuance of the Units, up to an additional 750,000 Units. The shares and the Units are expected to begin trading on the Nasdaq Global Select Market on June 27, 2019, under the symbols “CHNG” and “CHNGU,” respectively. Community Health Systems, Inc. (CYH) one of the largest publicly traded hospital companies in the US hit an intraday high of $2.655/share & a low of $2.50 today and closed the day at $2.56 down 1.54% on 1.76 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 Ishares Nasdaq Biotechnology ETF (IBB) moved down slightly again by 1% closing at $105.82. This sector has been on more than healthy run over the last 30 days but has slowed the last couple of days. The 52-wk range is $89.01 – 122.97.
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