“All Roses Again?” Vista Partners Daily Market Recap 7/23/19

By John Heerdink LinkedIn

The markets were overwhelmingly positive again today and they even invited the little guys on the Russell 2000 to play. All things seemed to get all roses again when Bloomberg reported that US representatives will be headed over to China Monday to Wednesday next week to once again meet in-person to advance discussions around the trade wars. We also received to key beats from Dow 30 components: Coca-Cola (KO) closed at $54.33 up a sizable 6.1% (Warren Buffett must be smiling today)  & United Technologies (UTX) closed at $134.94 up 1.50%. The White House and Congress found a way to agree on something today to assist as they struck a deal that will increase the budget deficit while suspending the debt ceiling for two years which will enable the government to make its expense payments during that time.

The Dow proceeded to gain a solid 177.29 points today up .65% closing at 27,349.19 near its recent new all-time high of 27,398.68. The S&P 500 added 20.44 points or .68% enough to get it back over the 3000 level closing at 3,005.47. The tech-heavy Nasdaq closed at 8,251.40 up .58% while adding 47.27 points. The Russell 2000, the small-cap stock market index representing the bottom 2,000 stocks in the Russell 3000 Index as mentioned did participate in the positive upswing as it increased 10.18 points closing at 1,554.96 up .66%.

The U.S. Dollar Index rose .5% closing at 97.74.
Volatility bets were on the same page today as they moved lower. The CBOE Volatility Index (VIX) closed lower at $12.61 down sharply by 6.80% or $.92/share. The 2x leveraged ETF TVIX also closed lower at $13.43 down 7.44% or $1.08/share and traded tightly between $13.43 and $14.29 today.
The 2-yr treasury yield increased to 1.83% up .02%, and the 10-yr treasury yield climbed to 2.07% up .03%.

Oil prices moved higher again today by .9% closing at $56.72/bbl. Dow 30 energy participants Chevron (CVX) moved higher by .41% closing at $125.82/share & Exxon (XOM) closed higher by .40% closing at $75.37/share.  Occidental Petroleum (OXY) closed at $51.80/share down 1.35%.

Gold closed at $1417.20.60/oz. Silver closed at $16.50/oz. Hecla Mining Company (HL) closed at at $1.94 down 1.02. First Majestic Silver (AG) closed at $10.02/share down .79% after its sizable recent move.

Tech

Big tech stocks results were mostly up today.  Apple (AAPL) was up .78% closing at $208.84/share & Amazon (AMZN) gained .45% closing at 1,994.49. Alphabet (GOOG) clipped forward .72% closing at $1,146.21 & Facebook (FB) closed at $202.36 up .02%. Shares of Microsoft (MSFT) closed trading at $139.29 up .62%. Chipmaker Intel (INTC) moved higher up .78% closing at $51.75/share & Micron (MU) lost .51% closing at $46.95/share. Netflix (NFLX) moved lower again today losing 1.07% ending at $307.30/share. NYC-based Yext (YEXT), an innovator in search giving customers control over their business information across the digital landscape, closed at $20.51/share down .39% & has experienced a 52-wk trading range of $12.90 – $27.19.

Financials/Money management

Overwhelmingly good day for the fincial related stocks in general. Goldman Sachs (GS) closed at $219.43 up 2.54%. JPMorgan Chase (JPM) closed at $116.36 up 1.83%. Wells Fargo (WFC) closed at $47.20 up 1.55%. Morgan Stanley (MS) closed at $45.10 up 1.35%, Bank of America (BAC) closed $30.25 up 2.30%.

Institutional alternative asset manager Och-Ziff Capital Management Group (OZM) closed at $23.99/share up a more than solid 4.03% or $.93/share closing still off its newly minted 52-wk high of $25.49. The 52-wk range is $8.60 – $25.49. OZM sports a 4.34% cash dividend.

Los Angeles-based Colony Capital (CLNY) a leading global investment management firm with assets under management of $43 billion closed at $5.15/share up .98% after hitting an intraday high of $5.16. CLNY pays an 8.58% cash dividend. The 52-wk range is $4.55 – $6.28.

Consumer Goods & Entertainment

The Home Depot (HD) closed at $213.08/share up .86%.

The Walt Disney Company (DIS) closed trading up .30% at $141.26/share.

Nike (NKE) closed at $88.70 up .85%. Nike recently missed analyst earnings estimates but maintained full-year guidance.

Walmart (WMT) closed at $112.09 off .65%.

Healthcare

The healthcare sector moved higher today. The S&P 500 healthcare sector closed at 1065.93 up .62%. UnitedHealth (UNH) closed lower down .12% closing at $255.01, Walgreens Boots Alliance (WBA) closed at $54.651 up 1.32% & Cigna (CI) added .87% closing at $172.10.

Johnson & Johnson (JNJ) reported earnings recently beating analyst expectations as they confirmed a +40% increase in Q2 net income year over year. JNJ shares closed at $128.84 up .16% but is are still dealing with their overhang of the opioid & mesothelioma related issues.

INVO Bioscience, Inc. (IVOB) ended the day at $.3398/share as 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. IVOB also announced last week news of their recent appointment of Pressly Ahammed as the new Director of International Business Development and he will be responsible for the Company’s international distribution channels in Europe, Middle East, Africa & parts of Asia. Ahammed joined IVOB from Cooper Surgical where he held a similar position. See complete story.

Corindus Vascular Robotics, Inc. (NYSE American: CVRS), a leading developer of precision vascular robotics, announced recently that Albert Einstein Jewish Hospital (Hospital Israelita Albert Einstein) in São Paulo, Brazil has become the first hospital in the Southern Hemisphere to implement Corindus’ CorPath GRX System. Ranked as the best hospital in Latin America for 10 years in a row, Albert Einstein Jewish Hospital will continue to uphold its standing by leveraging the Company’s technology in its health system’s leading research facilities. The Company’s CorPath® platform is the first FDA-cleared medical device to bring robotic precision to percutaneous coronary and vascular procedures. CorPath GRX is the second generation robotic-assisted technology offering enhancements to the platform by adding important key upgrades that increase precision, improve workflow, and extend the capabilities and range of procedures that can be performed robotically. For additional information, visit www.corindus.com CVRS shares closed at $2.67/share and the 52-week trading range is $.78- $3.49/share. Corindus is due to report earnings in the July 30 time frame according to the latest records at etrade.

Biotech

The Ishares Nasdaq Biotechnology ETF (IBB) gained .26% closing at $105.39. This sector has been on a more than healthy run over the last 30 days. The 52-wk range is $89.01 – $122.97.

Pfizer (PFE) closed higher at $43.09 up .63% after the recent announcement regarding their acquisition of Array BioPharma (ARRY) for ~$11.4 billion or $48/share in cash.  See complete story. The pharmaceutical giant and Dow component Merck & Co, Inc. (MRK) that recently announced the acquisition of Tilos Therapeutics for a consideration of up to $773 million closed at $82.039 up by 1.01%. Biogen (BIIB) reported earnings today beating analysts’ estimates and closed $243.88 jumping +4.9%.

Atossa Genetics (ATOS),  a Seattle-based biotech firm developing novel therapeutics and delivery methods to treat breast cancer and other breast conditions closed at $2.04 flat today. The average daily trading volume is 800,255 shares per day.   Atossa is developing a new proprietary modified-release oral tablet form of its Endoxifen, which is the form of the drug that the company intends for future clinical studies and commercialization. This is the next generation of oral Endoxifen following the successful clinical studies of the capsule form of the company’s oral Endoxifen. A patent application covering the new table has also been filed with the U.S. Patent and Trademark Office. As part of the development of this new oral tablet, Atossa has commenced a Phase 1 study in Australia to ascertain the pharmacokinetics of the tablet. The study is randomized, double-blinded and placebo-controlled with both single and multiple-doses in 2 groups with a total of 24 healthy female volunteers who will be dosed for 14 days. Atossa’s oral Endoxifen capsule, which has been used in previous clinical studies, will serve as the comparator. The first group of the study has now been enrolled and dosed. Steven C. Quay, Ph.D., M.D., CEO, and president of Atossa, commented: “We are excited to take this next step in our oral Endoxifen product development. Based on the abundance of information from our previous clinical studies, we strongly believe in the potential efficacy of oral dosing and intend for this modified-release tablet to be the commercial form of our oral Endoxifen. 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. This new study builds on the success of our Phase 1 studies of the oral capsule and topical forms of our Endoxifen, our recent successful Phase 2 study of topical Endoxifen, which demonstrated significant efficacy in reducing breast density, and our single-patient compassionate use study of oral Endoxifen. Following the completion of this Phase 1 trial, we will continue to use this proprietary modified-release formulation for future clinical studies — including a Phase 2 trial that we have already indicated is in development — and ultimately regulatory approval. We look forward to completing the study in the next quarter.”

San Diego-based biotech Fate Therapeutics (NASDAQ: FATE), dedicated to the development of programmed cellular immunotherapies for cancer and immune disorders,  closed up at $22.50/share up .09% on 562,627 shares of trading after establishing a new all-time intraday high of $22.75! The 52-week range is $8.64 – $22.75. Cantor Fitzgerald initiated coverage today, July 22nd, with an overweight rating. Oppenheimer initiated coverage on Friday, July 12th with an Outperform Rating. Guggenheim Securities initiated coverage on FATE last week with a “Buy Rating” and a $25/share price target.  Mizuho initiated coverage with a price target of $27/share recently.

Bedford, Massachusetts-based Stoke Therapeutics is a biotechnology company pioneering a new way to treat the underlying cause of severe genetic diseases by precisely upregulating protein expression. Recently Stoke Therapeutics announced the pricing of its initial public offering (IPO) of 7,891,110 shares of its common stock at a price to the public of $18.00 per share. The shares are now trading on The Nasdaq Global Select Market as of June 19, 20,19 under the symbol “STOK.” Stoke’s stock traded as high as $31.76 recently a new all-time high prior to closing trading at $25.50/share up 10.87% today. See complete story.  

Xeris Pharmacueticals, Inc. (XERS) closed down 4.84% at $12.18. Xeris is a specialty pharmaceutical company leveraging its novel formulation technology platforms to develop and commercialize ready-to-use injectable and infusible drug formulations.

IPO

Elsewhere on the recent IPO front, Zoom Video Communications (ZM) moved higher by .74% closing at $97.39 & Uber Technologies (UBER), the ride-sharing company closed lower by .76% at $43.36/share & still below its recent IPO price of $45. Plant-based burger maker Beyond Meat (BYND) added .66% closing at $195.48 after establishing and a new all-time high of $208.47 intraday trading. 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 $33.94 up 2.08%. 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.

Economy

We received data confirming that existing home sales lowered by 1.7% m-o-m in June ending at a seasonally-adjusted annual rate of 5.27MM.

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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