“Coronavirus Threat Continues But Broad Markets, INVO Bioscience, Tesla, & Virgin Galactic Fly Higher” – Vista Partners Daily Market Recap For January 22, 2020

The broad markets seemed to get a bit more comfortable initially with the widely reported measures that the US and China are taking to control the coronavirus outbreak as the major indices rebounded today to achieve new highs, however, they backed off in late trading.

The S&P 500 ended at 3,321.75, +.03%.  The FAANG stocks’ finished with mixed results. Facebook (FB) closed at $221.32/share, -.05%, Amazon (AMZN) closed at $1887.46/share, +-.24%, Apple (AAPL) closed at $317.70/share, +.36%, Netflix (NFLX) closed at $326.00/share, -3.58% after reporting their Q4 subscriber growth which disappointed investors, & Alphabet (GOOG) closed at $1485.95/share, +.10%.

The Nasdaq Composite ended at 9,383.77, +.14%.

The Dow Jones Industrial Average ended at 29,186.27, -.03%. IBM beat Wall Street’s earnings estimates while issued upping their full-year 2020 EPS guidance.

The Russell 2000 also dropped by -.09% ending at 1,684.46.

The “fear gauge” Vix (TVIX) ended at $40.40/share, +.90% and traded in a range of $38.59 – $40.58.

Economic Reports

On Monday we did not receive any economic data as we observed the MLk Day holiday.

On Tuesday we did not receive any economic data.

On Wednesday, we received the existing home sales report which rose +3.6% month/month in December to a seasonally adjusted annual rate of 5.54M units while total sales rose +10.8% y/y. The FHFA Housing Price Index report confirmed a move higher by +.2% in January while the weekly MBA Mortgage Applications went down by -1.2%.

Investing & Inspiration

“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

Tomorrow

We are due to receive the Existing Home Sales for December, the FHFA Housing Price index for January, & the weekly MBA Mortgage Applications Index Report tomorrow.