“Main Concerns” Vista Partners Daily Market Recap 5/23/19

By John Heerdink LinkedIn

The markets fell today as we all had many concerns.  It was one of those days that felt as though our coveted ice cream cone had been dropped before we got the first taste.  The main concerns swirling around the markets and the world today were of the trade war tensions variety, economic growth as a whole and then corporate growth. Stories that the Chinese officials were pushing back from the table regarding negotiations with the US as reportedly more companies outside the US began severing connections to the huge Chinese tech Huawei. This further inflamed the fires and beliefs that the trade wars will persist to a much longer degree than some had thought.

Oil prices fell a whopping 5.8% closing at $57.83/bbl. Chevron (CVX) sharply fell ending the day at $117.87 or 2.24%. Exxon (XOM) closed lower at $73.79 down 2.34%. The energy sector was off 1.6% today overall as bearish inventory data surfaced to further complicate the situation.

As a result, the S&P 500 ended the session down 1.19% at 2822.24. The Dow moved lower too by 286.14 points and ended down 1.11% closing at 25,490.47 while the tech-heavy Nasdaq dropped 1.58% closing at 7628.26 & the Russell 2000 pulled back the most dropping a meaty 2%.

As the markets dropped and fear ramped today the CBOE Volatility Index (VIX) closed up at $16.92 or up a whopping 14.71% and traded between $15.28 – $18.05. The 2x leverage ETF TVIX also closed up at $23.54 climbing 12.42% and trading between $22.43 and $24.22 today.

Dow 30 components & the world’s leading manufacturer of construction & mining equipment Caterpillar (CAT) closed at $122.56 down 1.05%

Pharmaceutical giant Merck & Co, Inc. (MRK) notched a little in closing at $81.02 up .05% after yesterday’s announcement that they are purchasing  Peloton Therapeutics for $1.05 Billion in cash plus additional payments that depend on how well the experimental development goes. This acquisition gives them access to their lead kidney cancer drug candidate and is thought to further increase their position in renal cell carcinoma and its cancer drug portfolio in general.

Intel (INTC) moved higher by 1.20% closing at $44.53/share. Shares of Microsoft (MSFT) lost 1.17% closing at $126.1 after reports surfaced that they have removed Huawei products from one of its websites offering cloud gear.  Apple (AAPL) did not fare well closing at $179.66/share down 1.71%. Uber Technologies (UBER), the ride-sharing company who priced its IPO at $45 per share last week and raised a whopping $8.1 billion lost again today down another 1.89% as it closed at $40.47 and continues to find a difficult path in the public markets.

Disney (DIS) slid closing at $132.73 down .84%.  Home Depot (HD) shares jumped up 1.64% closing at $192.00 after reaffirming 2019 guidance earlier this week.

Maxar Technologies (MAXR), a Westminster, CO-based global technology innovator powering the new space economy, announced today that was chosen by NASA to study future systems that could revolutionize NASA’s space-based communications architecture through innovative technologies and commercial partnerships. Shares of MAXR reached an intraday high of $8.94 and recorded a low of $6.70 prior closing at $8.85 up 27.71% today on 12.59 million shares of trading.  The 52-wk range is $3.83-$55.28.

Community Health Systems, Inc (CYH) one of the largest publicly traded hospital companies in the US hit an intraday high of $3.37/share & a low of $3.16 today and closed the day at $3.22 down 5.29% on 1.54 million shares of trading.

The Seattle-based biotech firm developing novel therapeutics and delivery methods to treat breast cancer and other breast conditions Atossa Genetics (ATOS) dropped 5.78% closing at $2.61.  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.”

The US Dollar Index closed down .2% at 97.88.

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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