“An Extraordinary Day” Vista Partners Daily Market Recap 5/14/19

By John Heerdink LinkedIn

Today the markets moved nicely higher after crashing feverishly yesterday. Amazing how a change of sentiment and associated action can change the market value and mood. TAt the end of the day today the S&P 500 bounced nearly a point or .80% ending the session at 2834.41. The Dow rose .82% ending at 25,532.05 while the Nasdaq jumped 1.14% closing at 7734.47 and the Russell 2000 managed to rise 1.3%.

The positive move today was attributed to positive rhetoric out of the US-Chinese trade war camp. Niceties and confidence were shared between the sides. President Trump stated his Chinese relationship was indeed “extraordinary” while the tariff situation was is just a “little squabble” and that they are merely sharing “very good dialogue.” Geng Shuang, Chinese foreign ministry spokesman stated: “My understanding is that China and the United States have agreed to continue pursuing relevant discussions.”

These friendly statements and upward movements in the markets came after many were believing that the trade talks had fallen off a cliff after yesterday’s Chinese retaliatory chess move to list 5,000 items covering U.S. goods from agriculture, chemicals, fabrics & metals, approximately $60 Billion overall & ranging between 5% to 25%. These new tariffs are to take effect on June 1, 2019. Washington’s first move last week was to add 25% tariffs on $250 billion of Chinese goods that took effect last Friday at 12:01 am when the two sides failed to come to an agreement.

With volatility to the upside again today the CBOE Volatility Index (VIX) closed sharply down again a whopping 12.12% closing at $18.06 realizing the daily range of $17.45 – $19.65. The 2x leverage ETF TVIX closed at $26.50 down 10.50% and traded between $25.81and $28.00 today.

Dow 30 components Caterpillar (CAT) closed up 1.73% and Walmart (WMT) bumped up .40% closing above 100 again at $100.29.

Out of the energy sector, Chevron (CVX) was up 1.00% ending the day at $121.64. Exxon (XOM) closed relatively flat at $75.81 up marginally at .13%.

In the tech sector, Intel (INTC) pushed higher by .92% closing at $45.17/share. Microsoft (MSFT) 2got a win closing up 1.12% closing at $124.73. Apple (AAPL) recoverd from the negative zone to finish the day up1.58% at $188.66/share.

Uber Technologies (UBER), the ride-sharing company who priced its IPO at $45 per share last week and raised a whopping $8.1 billion experienced its first positive trading day as it closed up 7.71% closing at $39.96/share.

Disney (DIS)  regain its composure and closed at $133.20 up 1.42% today.

The Seattle-based biotech firm developing novel therapeutics and delivery methods to treat breast cancer and other breast conditions Atossa Genetics (ATOS) saw its shares close down 6.75% at $2.35 per share today. On Monday Atossa offered the following Q1 2019 Corporate Developments & Q1 2019 Financial Results. See Complete Story.

Oil prices rose 1.2% closing at $61.84/bbl.

The US Dollar Index moved higher by .2% closing at 97.53.

What will happen in the markets tomorrow?  If this situation is developing a pattern then one would guess that mudslinging might take center stage at some point, cause volatility and then force a drop again.  Having said that it seems a bit unnatural if not silly to expect the two parties to act that well. Regardless of how it turns out tomorrow,  it would seem that we are not resolving the situation anytime soon.

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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