Fed Stays Pat As Nasdaq, Gold & Silver Surge

The markets were overall sour today except for the Nasdaq which moved further into record territory closing above 10k at 10,020.35 up .67%. The energy sector down 4.9% and the financials sector down 3.8% were the main culprits in the overall markets decline. Starbucks (SBUX) ($79.01/share, -4.1%) did its part to also put a damper on the day as they announced expectations that quarterly sales will decrease by approx. $3.2B while operating income will decrease by approx. $2.2B attributing the fall to the coronavirus pandemic and resulting in their move to close 400 stores.

On the other hand, large tech stocks like Amazon, Apple, & Microsoft helped buoy the Nasdaq to its new record high. The Fed tried to do its part to lift spirits and the markets by keeping pat on interest rates stating “We’re not thinking about raising rates” and seem to be in favor of keeping interest rates essentially flat through 2022. The Fed also stated that the economy “has improved” and that is optimistic about an economic recovery while they will stay committed to increasing its asset purchases.

Stimulus and a ridiculously low-interest-rate environment typically bolds well for the markets. However, today the S&P 500 closed down .53% at 3,190.14, the Dow also dropped 1.04% even with tech giant Microsoft (MSFT) rising to $196.84/share up 3.7% & the Russell 2000 lost 2.63%. Gold & silver prices rose again as gold at $1,740/oz (+27) while silver prices closed at $18.35/oz (+.61). North American silver and gold producer Hecla Mining Company (HL) closed at $3.44/share up 8.86% while First Majestic Silver (AG) gained 6.14% closing at $10.37/share.

The FAANG stocks ended as follows: Facebook (FB) closed at $236.73/share down .81%, Amazon (AMZN) closed at $2,647.45 rising +1.79%,  Apple (AAPL) closed at $352.84/share up by 2.57%, Netflix (NFLX) gained .10% closing at $434.48/share, & Alphabet (GOOG) closed at $1,465.85/share up by .67%. 

Oil rose another 1.6% as it closed at $39.54/bbl. Energy leaders Chevron (CVX) closed at $97.58/share down 3.89%, Exxon (XOM) closed at $50.65/sharedown 5.36% & highly leveraged Occidental Petroleum Corporation (OXY) closed at $20.76/share down 10.44% cooling off considerably after its recent 40% surge. 

On the macroeconomic front, the Consumer Price Index Report for May confirmed a drop of .1% month/month while the Core CPI, excluding food & energy, also dropped by .1%. The weekly MBA Mortgage Applications Index Report showed a 9.3% move higher.

The 2-yr US treasury yield dropped 3 basis points closing at .17% & the 10-yr yield dropped 8 basis points ending at .75%. The U.S. Dollar Index continued to weaken dropping another by .3% to end at 96.02. 

MOVERS

Here’s a couple of other equities that moved significantly higher today:

• Shares of the Ballard Power Systmes, Inc (BLDP) jumped 17.39% closing at $14.58/share after touching a new 52-wk high of $14.63/share. Ballard zero-emission PEM fuel cells are enabling electrification of mobility. I could not find any direct news that would have caused this move, however, they reported on May 5th that their Q1 revenue hit a record $24M up 50% year over year,  a significantly strengthened balance sheet, but withdrew 2020 revenue outlook due to COVID-19 uncertainties. 

• Shares of Five Below, Inc. (FIVE) rose 9.40% to close at $113.67/share post bullish reopening retail sales trends. Five below is a leading high-growth value retailer offering trend-right, high-quality products loved by tweens, teens and beyond which has over 900 stores in 36 states.

TOMORROW

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

• The weekly Initial and Continuing Claims report
• The Producer Price Index for May

WATCH LIST

• Shares of INVO Bioscience (INVO) closed at $3.74/share up 7.47% today. INVO was recently funded and saw their 1-20 reverse split take effect Tuesday, May 26. The stock is trading under the symbol INVOD until June 22nd. They now have ~7.8M shares in this newly minted low or tight float play. Expect volatility as we wait for news from the company in the near term.  Recently, The Morning Blend aired an interview on WTMJ-4 Milwaukee where Dr. Ellen Hayes, a Reproductive Endocrinologist and Infertility Specialist from Vios Fertility Institute, discussed information regarding their new research in health, pregnancy, and COVID19. Dr. Hayes also shares their research and a new offering of INVO Bioscience’s  (INVO) FDA cleared infertility treatment called INVOcell The INVOcell technology, which continues to gain worldwide recognition and adoption, provides an in-vivo incubation solution that can help increase access and capacity to the large underserved global fertility market. The INVO Procedure is a revolutionary in vivo method of vaginal incubation that offers patients a more natural and intimate experience and more cost-effective. For the rest of 2020 Vios Fertility Institute is giving a special offer for InVoCell. The offer includes retrieval, monitoring, fresh embryo transfer for $6500, it normally costs $7200, which is still significantly less expensive than traditional lab-intensive IVF. Please watch the concise interview by clicking this link now! 

• Shares of Atossa Therapeutics (ATOS) closed at $3.18/share today. ATOS has approximately 9.2M shares issued and outstanding which placed it in the low-float category and hit a $3.48 52-week high last week after touching $.76 in the market downturn in March of this year. I am looking for Atossa to possibly hit us with further news regarding their now 2 COVID-19 treatment programs as early as this week. Recently ATOS announced the successful results from in vitro testing of AT-H201, Atossa’s proprietary COVID-19 drug candidate, and are seeking IRB and FDA approval to move into the clinic. ATOS also recently announced that it has begun the development of a second COVID-19 program using its proprietary drug candidate AT-301, to be administered by nasal spray as is teaming with nasal spray specialist firm Summit Biosciences. AT-301 is Atossa’s proprietary formula intended for nasal administration in patients immediately following a diagnosis of COVID-19 but who have not yet exhibited symptoms severe enough to require hospitalization. Atossa confirmed that it is intended for at-home use to proactively reduce symptoms of COVID-19 and to slow the infection rate so that a person’s immune system can more effectively fight SARS-CoV-2 (coronavirus). Atossa also intends to conduct testing to determine whether AT-301 can be used as a prophylaxis to prevent or mitigate SARS-CoV-2, with the goal that it could become a “bridge to the vaccine” and be useful in the next phase of the coronavirus pandemic. Recently, the CEO of Atossa, Physician-Scientist Dr. Steven Quay, MD, Ph.D. vowed to make his new book titled “Your COVID-19 Survival Manual: A Physician’s Guide to Keep You and Your Family Healthy During the Pandemic and Beyond,” available through his website, with proceeds supporting military veterans performing COVID-19 relief work in their communities, after the Amazon Kindle Store removed it three Days before its official launch. This 158-page eBook is chock-full of lifesaving tips you can’t find anywhere else to help you and your family stay safe while sheltering-in-place, as well as how to get back to life in the coming weeks and months. Learn how you can get your hands on it today.

• We are following Neubase Therapeutics (NBSE) for a number of reasons including its development of a modular antisense peptide nucleic acid (PNA) platform with the capability to address rare genetic disease caused by mutant proteins with a single, cohesive approach,  but it also because it may be added to a Russell index this month. Shares of NBSE closed at $7.73/share up 3.20% today but still off of its recent new all-time high of $9.63/share. Here are the following June dates for Russell indices inclusion for 2020:

  • June 12 & 19 – US index add & delete lists (reflecting any updates) posted to the FTSE Russell website after 6 PM US eastern time.
  • June 15 – “lock down” period begins – US index adds & delete lists are considered final
  • June 26 – Russell Reconstitution is final after the close of the US equity markets.
  • June 29 – equity markets open with the newly reconstituted Russell US Indexes.

• The Walt Disney Company’s (DIS) Disneyland is now planning to reopen in July with a phased reopening will begin with the Downtown Disney shopping and dining district on July 9. The will then move on to open both Disneyland & California Adventure on July 17 followed by the Grand Californian Hotel & Spa and Paradise Pier Hotel on July 23. Shares of Disney (DIS) closed at $122.18/share down 1.38%.

Economic Reports

• On Monday, we did not receive any significant reports.
• On Tuesday, the NFIB Small Business Optimism Index report for May confirmed a rise to 94.9 from 90.9 in April. The April job openings report showed a decline to 5.046M from a revised 6.011M in March. The Wholesale inventories report showed a rise of .3% in April.
• On Wednesday, the Consumer Price Index Report for May confirmed a drop of .1% month/month while the Core CPI, excluding food & energy, also dropped by .1%. The weekly MBA Mortgage Applications Index Report showed a 9.3% move higher.

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

Tomorrow

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

• The FOMC Rate Decision
• The Consumer Price Index for May
• The weekly MBA Mortgage Applications Index