“China 1 – Market 0” Vista Partners Daily Market Recap 6/11/19

By John Heerdink LinkedIn

I guess the markets’ streak of winning days had to end at some point, right?  The recent five consecutive days of upward movement in the markets that we just experienced was a very good run. Did you know that the S&P 500 is up north of 6% just since June 1?  Part of the problem today is that the markets were not conveniently served any amazing or growth-oriented news to speak of and our minds seemed to drift back towards the US-China trade wars and slowing global growth situations. China did their part overnight by pitching their stimulus plan that would include the easing of restrictions on spending by “local governments.” This would enable them to use bond sales to push forward major infrastructure projects. The markets concluded that this may further propel the Chinese economy upward and put them in a better negotiating position with the US ultimately. Reportedly, President Trump repositioned as he offered his threat to raise tariffs on China if President Xi Jinping does not sit down with him at the upcoming G20 Summit in the June 28th time frame.  Does this sound familiar? By the way, whatever happened to our US infrastructure buildout that was promised the night of the elections?

The combination of the aforementioned non-events and events led to the markets decline today. The S&P 500 ended the session down 1.01% at 2885.73. The Dow dropped 14.17 points down .05% but still above 26k at 26,048.51 while the tech-heavy Nasdaq lost .01% closing at 7822.57 up .60 points & the Russell 2000, the small-cap stock market index of the bottom 2,000 stocks,  fell .29% and closed at 1519.11 down 4.45 points.

Today oil prices moved higher by .1% closing at $53.34/bbl. Dow 30 energy participants Chevron (CVX) moved down by .92% closing at $121.17 & Exxon (XOM) closed at $74.84 down .09%.

The US Dollar Index moved lower .1% ending the day at 96.70.

The 2-yr treasury yield ended at 1.93% up .03 & the 10-year Treasury note closed flat at 2.14%.

The Producer Price Index for final demand increased 0.1% but the index for final demand, less food, and energy, increased 0.2%. The NFIB Small Business Optimism Index increased to 105 in April.

Volatility bets closed slightly higher today. The CBOE Volatility Index (VIX) closed at $15.99 & up .31%. It traded between $15.50 – $16.70. The 2x leverage ETF TVIX also closed lower at $21.76 up .60% and traded between $20.90 and $22.33 today.

Institutional alternative asset manager Och-Ziff Capital Management Group (OZM) closed at $20.02 up 1.73%. OZM sports a healthy 5.65% cash dividend.

In the tech world,  Amazon (AMZN) moved higher up .16% closing at 1,863.70,  Alphabet (GOOG) was down .15% closing at 1,078.72, Apple (AAPL) rose 1.16% closing at $194.81 & Facebook (FB) jumped 1.88% closing at $178.10. Intel (INTC) glided up .11% closing at $46.85/share. Shares of Microsoft (MSFT) closed lower at $132.10 down .38%. Zoom Video Communications (ZM) lost its steam after the last 2 days run closing at $94.87 down 6.99%.  Uber Technologies (UBER), the ride-sharing company continues to lag as it closed at $42.45/share down .38% still below its recent IPO price of $45.

Entertainment giant Disney (DIS) closed at $135.08 down 1.45%. See our latest story on Disney: Will Georgia’s Abortion Law “Force” Disney To Stop Filming In The State?

Home Depot (HD) was down a smidge by .02% closing at $198.01.

Dow 30 component & the world’s leading manufacturer of construction & mining equipment Caterpillar (CAT) closed at $127.28 up another 1.22%.

McDonald’s (MCD) closed at $203.26 up .97%.   Plant-based burger maker Beyond Meat (BYND) closed at $126.04 slid down a whopping 25.02 % after the last two days where it had moved up 60.64%. Their meat is made of four main ingredients: water, pea protein isolate, canola oil & refined coconut oil and is meant to taste like “meat.”

As for as healthcare sector today, the pharmaceutical giant and Dow component Merck & Co, Inc. (MRK) closed at $82.48 up another .61%.

Community Health Systems, Inc. (CYH) one of the largest publicly traded hospital companies in the US hit an intraday high of $2.81/share & a low of $2.67 today and closed the day at $2.73 down 2.50% on 2.4 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.

In the biotechnology sector, we saw the Ishares Nasdaq Biotechnology ETF (IBB) fell another .49% closing at $102.70.

Atossa Genetics (ATOS),  a Seattle-based biotech firm developing novel therapeutics and delivery methods to treat breast cancer and other breast conditions, closed at $2.22/share as it traded as high as $2.32. The average daily trading volume is 3.05 million shares per day.  The Maxim’s Group’s biotech analyst, Jason McCarthy, Ph.D., reiterated his ATOS buy rating recently with a $9/share 12-Month Target Price. See his update report which is called “Reports the Quarter, Endoxifen Programs Progressing, Data Updates Expected Over 2019.”

San Diego-based biotech Fate Therapeutics (NASDAQ: FATE), dedicated to the development of programmed cellular immunotherapies for cancer and immune disorders,  closed at $16.02/share on 714,926 shares of trading after establishing a new all-time intraday high of $16.85. The 52-week range is $8.64 – $20.65. Guggenheim Securities initiated coverage on FATE last week with a “Buy Rating” and a $25/share price target. Scott Wolcho, President and CEO of Fate Therapeutics presented at the Jefferies 2019 HealthcareConferencee in New York yesterday. Roth Capital initiated coverage on FATE with a Neutral rating and a $20 price target last Friday, June 7th.

Boston-based Pieris Pharmaceuticals (PIRS) closed at $4.19 up 2.44%.

INVO Bioscience, Inc. (IVOB) ended the day at $.3890/share up 11.17%. IVOB is a medical device company, headquartered in Medford, Massachusetts, 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 announced this week that it will participate at the 35th Annual Meeting of the European Society of Human Reproduction and Embryology (“ESHRE”) in Vienna, Austria June 23 – 26, 2019. ESHRE is the leading European-based scientific trade organization devoted to research, education, and advocacy relating to all facets of human reproduction and embryology.

The USWNT trounced Thailand 13-0 in the 2019 Women’s World Cup. USA! USA! USA!

Looking forward to seeing how all plays out again tomorrow!

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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