“Improved COVID-19 Sentiment Lifts Markets- Annaly (NLY) Jumps” – Vista’s Daily – April 8, 2020

Wednesday’s markets received a solid lift from today’s improved sentiment regarding the COVID-19 epidemic after NIAID Director Fauci, President Trump’s right-hand man during the crisis,  stated that the COVID-19 death models are improving and we could possibly see further evidence of progress as soon as next week. Our recently fragile and volatile markets embraced the news and proceeded to rise as it reached for the light at the end of the tunnel for the balance of the day and into the close. The S&P 500 closed up +3.41%. The real estate, energy, utilities, and materials sectors led the day and closed respectively up +7.4%, +6.7%, +5.4% & +5% while all eleven sectors ended in the green. The Dow closed higher by +3.44%, the Nasdaq gained +2.58% & the Russell 2000 jumped up a respectable +4.61%.

The FAANG stocks’ results were mostly in the green today. Facebook (FB) closed at $1674.28/share, gaining +3.23%, Amazon (AMZN) closed at $2,043/share, up by +1.56%, Apple (AAPL) closed at $266.07/share adding +2.56%, Netflix (NFLX) dropped -.31% closing $371.12/share, & Alphabet (GOOG) closed at $1,210.28/share gaining +2%. The technology sector  rose +2.7% today.

Oil prices regained momentum today with the improved global growth picture as it jumped +5.9% closing at $25.17/bbl.  Dow 30 energy components had a great day as Chevron (CVX) closed at $80.98/share up +6.25% and Exxon (XOM) closed at $43.85/share up +6.33%. Occidental Petroleum Corporation (OXY) closed at $15.56/share up by +12.43%.

The 2-yr yield declined by 1 basis point to .255% & the 10-yr yield moved higher by 3 basis points to .76%. The U.S. Dollar Index strengthened by .04% to 100.16.  

Gold prices closed lower at 1,653/oz, silver prices dropped to $15.11/oz.

We received the following significant economic reports:

• The weekly MBA Mortgage Index Report confirmed a decline by -17.9%
• The Purchase Index Report confirmed it declined by -12.2%
• The Refinance Index Report fell -19.4%.

A few stocks in focus today:

Shares of Neubase Therapeutics (NBSE) rose to $7.76/share prior to closing at $7.74/share up +6.76% today. Neubase recently announced positive preclinical data from its pharmacokinetics studies in non-human primates (“NHPs”) and in vitro pharmacodynamics data in patient-derived cell lines. NeuBase believes these data validate the key advantages of the proprietary NeuBase peptide-nucleic acid (“PNA”) antisense oligonucleotide (PATrOL™) platform and support the Company’s decision to advance the development of its Huntington’s disease (“HD”) and myotonic dystrophy type 1 (“DM1”) programs, as well as the potential expansion of its therapeutic pipeline into other indications. Dr. George Church, professor of genetics at Harvard Medical School and member of the National Academy of Sciences, stated, “Given the activity and broad biodistribution observed in these studies and the potential for easier target definition, I believe the PATrOL™ technology may have a potent impact on the future of drug development and treatment of genetic diseases.”

Shares of Atossa Therapeutics (ATOS) bumped up +5.33% today closing at $1.58/share. Last Friday the stock closed at $1.04/share and is currently showing that it is trading at $1.65/share up another +4.45%. On Monday, Steven Quay M.D., Ph.D., the founder, Chairman & CEO of Seattle-based Atossa was interviewed by Fox News before the market opened regarding his COVID-19 Hope Trial where he is seeking to study the use of two approved drugs to rapidly find a viable coronavirus treatment. Here’s the link to the interview in case you missed it earlier today: https://video.foxnews.com/v/6147410883001#sp=show-clips  Dr. Quay received his M.D. and Ph.D. from The University of Michigan, was a postdoctoral fellow at MIT with Nobel Laureate H. Gobind Khorana, a resident at the Harvard-MGH Hospital, and was on the faculty of Stanford University School of Medicine. His contributions to medicine have been cited over 9,600 times. He has founded six startups, invented seven FDA-approved pharmaceuticals, and holds 87 US patents. Over 80 million people have benefited from the medicines he invented. His current passion is the prevention of the two million yearly breast cancer cases worldwide.

Shares of Intellicheck, Inc. (IDN), an industry leader in identification authentication solutions jumped to $3.3986/share prior to closing at $3.34/share up +6.58%. Yesterday, IDN announced that a 40-location upper Midwest furniture store is now using Intellicheck’s Retail ID Web. Retail ID Web is a standalone web application that requires no point of sale system integration. The technology solution engages the customer’s mobile device to capture identification documents such as a driver’s license, state-issued ID, or military ID for authentication. The U.S. top 50 multi-brand furniture retailer and distributor needed an immediate way to authenticate person-not-present credit card purchasers, stopping fraud despite store closures due to the coronavirus. This prominent furniture retailer was reported to have required an immediate solution that needed no integration yet could also authenticate credit card purchasers over the phone. They chose to equip sales associates fielding consumer credit card phone orders with Retail ID Web, a frictionless, real-time technology solution. Retail ID Web authenticates identification documents, allowing sales associates to quickly and seamlessly fulfill credit card purchases while deterring losses associated with bad actors and fraudulent cards. “With many retail stores now closed, the coronavirus pandemic has fueled a new wave of internet and person-not-present identity theft and fraud. Retail ID Web provides retailers and customers with unparalleled protection against this fraud. Retailers and credit card issuers are looking for immediate solutions given the new shopping paradigm. Retail ID Web gives them that solution with no integration required. All they need to do is log in and they can be instantly authenticating credit card purchasers to assure they are who they say they are,” said Intellicheck CEO Bryan Lewis.

Shares of Annaly Capital Management, Inc. (NLY) flew higher today closing at $5.75/share up +29.21%. NLY is a diversified capital manager, invests in and finances residential and commercial assets. The company invests in various types of agency mortgage-backed securities, non-agency residential mortgage assets, and residential mortgage loans; and originates and invests in commercial mortgage loans, securities, and other commercial real estate investments. Their dividend yield is currently showing at 23.53%.

Economic Reports

On Monday, we did receive any significant economic reports.

On Tuesday, we received the following significant economic reports: The NFIB Small Business Optimism Index Report confirmed a drop to 96.4 in March, the Job Openings Report confirmed a drop to 6.882 million in February, & the Consumer credit report confirmed that it moved higher by $22.3 billion in February. 

On Wednesday, we received the following significant economic reports: The weekly MBA Mortgage Index Report confirmed a decline by -17.9%, The Purchase Index Report confirmed it declined by -12.2%, & The Refinance Index Report fell -19.4%.

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 include the following:

• The March PPI
• The Core PPI
• The weekly Initial Claims
• The Continuing Claims
• The February Wholesale Inventories
• The preliminary reading of the Michigan Consumer Sentiment for April