A Positive Reversal In The Cards Today

By John F. Heerdink, Jr.

We now have seen more than 4,371,611 confirmed cases of COVID-19 in the world with 1.562M cases that have recovered and more than 297k worldwide deaths. In the US, we have 1.436M confirmed cases with 247k that have recovered with 85,846 deaths while our economy is still shut down for the most part as stimulus measures are being pushed forward and more is most assuredly a 4th consecutive coronavirus relief effort is in the cards as the Labor Department’s latest report on initial unemployment claims confirmed 2.981M Americans filed for first-time unemployment benefits last week, which now totals 36.5M since the week ended March 20, 2020.

Today, a reversal of fortunes was also in the cards for the markets after the last couple of days of declines. The S&P 500 also closed up 1.15% & the Dow gained 1.62% with Cisco (CSCO) jumping 4.5% closing at $43.85/share after reporting better than expected earnings while giving positive guidance. The Nasdaq closed up .91% & the Russell 2000 added .35%. The financials sector was up a solid 2.6% while rumors and speculation appeared surrounding a possible merger between financial giants Wells Fargo (WF) ($24.06/share, +6.8%) and Goldman Sachs (GS) ($174.45/share, +1.5%.)  The financial industry seems to be on its steady path of consolidation that should see more as the COVID-19 crisis, technology is adopted and interest rates remain at historic lows.

The popular FAANG stocks particiapted in the today’s postive move and closed as follows: Facebook (FB) closed at $206.81/share, up by .83%, Amazon (AMZN) closed at $2,388.85/share, up .88%,  Apple (AAPL) closed at $309.54/share up by .61%, & Netflix (NFLX) rose .84% closing at $441.95/share, & Alphabet (GOOG) closed at $1,356.13/share up .5%.

On the macroeconomic front, we received the Import prices report which confirmed a drop of  2.6% in April while export prices decreased 3.3% in April.

Oil prices jumped today 8.3% and closed at $27.44/bbl  post the surfacing of the May IEA report confirming that global oil supply is set to fall by a “spectacular” 12 mb/d in May to a nine-year low of 88 mb/d, as the OPEC+ agreement takes effect and production declines elsewhere. Chevron (CVX) closed at $90.05/share up 1.52%, Exxon (XOM) closed at $42.30/share up by .88% & Occidental Petroleum Corporation (OXY) closed at $13.76/share up 2.38%. 

The 2-yr US treasury yield moved up 1 basis point to end at .16% & the 10-yr yield moved down by 2 basis points to end at .63%. The U.S. Dollar Index strengthened by .1% to end at 100.31. 

Gold prices ended at $1,736/oz (+13) while silver prices closed at $16.14/oz (+.40). North American silver and gold producer Hecla Mining Company (HL) ended the day at $2.64/share up 2.72%.

MOVERS

The following stocks moved significantly today:

  • Shares of Genus Brands International, Inc. (GNUS) shot up 79.85% closing at $1.31/share yesterday and today jumped to $1.89 prior to closing at $1.63% up another 24.43%. Genus is a global brand management company that creates & licenses multimedia entertainment content for children announced the closing of a $2.8M registered direct offering in concert with the recent launching of KARTOON CHANNEL!.
  • Shares of Atossa Therapeutics (NASDAQ: ATOS) jumped $1.90/share today prior to closing at $1.77/share up 14.19%. Yesterday Atossa announced their Q1 2020 Financial Results and confirmed the following progress.
    • Launched a new drug development program called COVID-19 HOPE to test AT-H201, a novel combination of two drugs that have been previously approved by the FDA for other diseases. The goal of the COVID-19 HOPE program is to develop a therapy to improve lung function and reduce the amount of time that COVID-19 patients are on ventilators. Atossa has applied to the FDA for approval to commence a clinical study in this setting.
    • Announced that Atossa has contracted with NYC Health + Hospitals/Metropolitan in New York City to conduct the COVID-19 HOPE study of AT-H201.
    • Announced positive interim results from Atossa’s Phase 2 study of oral Endoxifen to treat breast cancer in the “window of opportunity” between diagnosis of breast cancer and surgery. A statistically significant (p = 0.031) reduction of about 74% in tumor cell proliferation was achieved over an average of 22 days of dosing. Proliferation was measured by Ki-67, a recognized standard measurement of breast cancer cell proliferation. Other recent progress with this program includes contracting with Avance Clinical to open a second site for the study in Geelong, Victoria, Australia, with the goal of increasing the rate of enrollment; applying to the Institutional Review Board for approval to open the second site; and, manufacturing sufficient Endoxifen necessary for all patients expected to enroll in this study.
    • Announced that recent input from the FDA on Atossa’s oral Endoxifen program will inform Atossa’s clinical trial strategy and study design both in the U.S. and in Stockholm, Sweden, where Atossa is planning a Phase 2 study to reduce MBD. Atossa plans to commence the MBD study in Stockholm after receiving approval by the European Medical Product Authority (MPA) and the re-opening of mammography clinics in Stockholm following the COVID-19 closures.

TOMORROW

Tomorrow’s significant economic data report schedule will include the following:

  • The Retail Sales Report for April
  • The Empire State Manufacturing Survey for May
  • The Industrial Production and Capacity Utilization for April
  • The Business Inventories for March
  • The JOLTS report for March
  • The Net Long-Term TIC Flows for March

 

Markets

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Big Movers

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Bond Markets & US Dollar

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Economic Reports

  • On Monday, we did not receive any significant economic data.
  • On Tuesday, we received the following reports:  the Consumer Price Index report showed a decrease of -.8% month/month in April, while core CPI decreased -.4%, the Treasury Budget report for April confirmed a deficit of $737.85B vs. a surplus of $160.3B during the same period a year ago., & the NFIB Small Business Optimism Index report for April decreased to 90.9.
  • On Wednesday, we received the Producer Price Index for final demand report showed a decrease of 1.3% month/month in April & the weekly MBA Mortgage Applications Index report which confirmed a rise of .3%

Agriculture & Energy

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Biotech & Healthcare

Shares of Atossa Therapeutics, Inc. (NASDAQ: ATOS) closed at $1.63 share near its 50-Day MA after hitting a high of $1.70/share today. Atossa is a clinical-stage biopharmaceutical company seeking to discover and develop innovative medicines in areas of significant unmet medical need with a current focus on breast cancer and COVID-19, recently announced positive interim results from its Phase 2 study of oral Endoxifen to treat breast cancer in the window of opportunity between diagnosis of breast cancer and surgery. A statistically significant (p = 0.031) reduction of about 74% in tumor cell proliferation was achieved over the 22 days of dosing. Proliferation was measured by Ki-67, a recognized standard measurement of breast cancer cell proliferation. Learn more.

Maxim Group’s Sell-side Biotech Analyst Jason McCarthy issued an update report maintaining his BUY Rating on Atossa Therapeutics,  Inc. (NASDAQ: ATOS) with a $4/share 12-month price target. View Maxim’s report here.

INVO Bioscience (INVO) has made a number of moves to build out its organization while focusing its efforts to increase access to its INVOcell procedure globally. INVO’s lead product, the INVOcell®, is a patented medical device used in infertility treatment and is considered an Assisted Reproductive Technology (ART). ART includes all fertility treatments in which both eggs and embryos are handled outside of the body. In general, ART procedures involve removing mature eggs from a woman’s ovaries using a needle, combining the eggs with sperm in the laboratory, and returning the embryos to the woman’s body or donating them to another woman. The main type of ART is in vitro fertilization (IVF). INVO’s INVOcell is the first Intravaginal Culture (IVC) system in the world used for the natural in vivo incubation of eggs and sperm during fertilization and early embryo development, as an alternative to traditional In Vitro Fertilization (IVF) and Intrauterine Insemination (IUI). INVO’s mission is to increase access to care and expand fertility treatment across the globe with a goal to lower the cost of care and increase the availability of care. The Company believes the worldwide fertility treatment market to be severely underserved with only 1% to 2% of the estimated 150 million infertile couples being treated. Since January 2019, INVO Bioscience has signed commercialization agreements in the United States, as well as parts of Africa, Eurasia for the INVOcell device. On January 16, 2020, INVO and Medesole, a leading supplier of healthcare products in India and the Middle East, announced the signing of a joint venture to operate dedicated INVOcell clinics in India. According to the Indian Society of Assisted Reproduction, between 10% and 14% of Indians struggle with their fertility. In 2015, 27.5 million couples in India seeking children experienced difficulty conceiving. In urban areas, one out of six couples is impacted. According to market research, the India IVF market is expected to reach $1.45 billion by 2026, a 14.7% increase from 2019. This double-digit growth of infertility in India has made it a personal, as well as public health issue. Social stigma apart, infertility leads to tremendous financial and emotional stress for couples with the cost being a limiting factor for many couples who want to opt for this procedure. The Company further reported recently that the U.S. clinic locations which are trained to offer INVOcell have nearly tripled since their January 2019 agreement with Ferring & confirmed that each clinic location will vary in terms of implementation time and growth. Ferring has established a website, www.invocell.com, which provides information for patients and health care professionals, in addition to providing a tool to search for clinic locations that offer INVOcell.

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Consumer Goods & Trends

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Financials & Fintech

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Materials & Natural Resources

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Technology & Beyond

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Investing & Inspiration

 

 

I believe the returns on investment in the poor are just as exciting as successes achieved in the business arena, and they are even more meaningful!” -Bill Gates

“Every portfolio benefits from bonds; they provide a cushion when the stock market hits a rough patch. But avoiding stocks completely could mean your investment won’t grow any faster than the rate of inflation.” – Suze Orman

“The tax on capital gains directly affects investment decisions, the mobility, and flow of risk capital… the ease or difficulty experienced by new ventures in obtaining capital, and thereby the strength and potential for growth in the economy.” – John F. Kennedy

“If all the economists were laid end to end, they’d never reach a conclusion.
-George Bernard Shaw

“The riskiest thing we can do is just maintain the status quo.
I get up at 4:30 in the morning, seven days a week, no matter where I am in the world. I think it is important for people who are given leadership roles to assume that role immediately. What I’ve really learned over time is that optimism is a very, very important part of leadership.” Bob Iger, Ceo of Disney

“There are old traders and there are bold traders, but there are very few old, bold traders.”-Ed Seykota

“Let this scenario play out on its own, in its own fashion. As you watch it unfold, you will soon be grateful that you choose the peaceful path. Remember — those who live by the sword, die by the sword.”

“As long as you enjoy investing, you’ll be willing to do the homework and stay in the game.” -Jim Cramer

“I rarely think the market is right. I believe non-dividend stocks aren’t much more than baseball cards. They are worth what you can convince someone to pay for it.” -Mark Cuban

Michael Marcus taught me one other thing that is absolutely critical: You have to be willing to make mistakes regularly; there is nothing wrong with it. Michael taught me about making your best judgment, being wrong, making your next best judgment, being wrong, making your third best judgment, and then doubling your money.” -Bruce Kovner

“The policy of being too cautious is the greatest risk of all.” -Jawaharlal Nehru

“The only true test of whether a stock is “cheap” or “high” is not its current price in relation to some former price, no matter how accustomed we may have become to that former price, but whether the company’s fundamentals are significantly more or less favorable than the current financial-community appraisal of that stock.” -Philip Fisher

“I learned to avoid trying to catch up or double up to recoup losses. I also learned that a certain amount of loss will affect your judgment, so you have to put some time between that loss and the next trade.” -Richard Dennis

“The four most dangerous words in investing are: ‘this time it’s different.” -Sir John Templeton

“Money doesn’t make you happy. I now have $50 million but I was just as happy when I had $48 million.” -Arnold Schwarzenegger

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Tomorrow

Tomorrow’s significant economic data report schedule will include the following:

  • The Employment Situation Report for April
  • The Wholesale Inventories for March

Videos

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