Nasdaq Closes At New Record High – Balance of Market Sits Session Out Prior To Turkey Day!

Happy Wednesday before Thanksgiving all!

I hope every single one of you are already out laying in a hammock somewhere like the peaceful soul pictured above.  I also hope that you are counting your fortunes from the amazing bull market we are still enjoying or at least relaxing with the family.  I am looking forward to devouring large quantities of food & drink tomorrow, as is the tradition, while having a great socially distanced time watching football, playing games, and chilling with the family. I wish you and yours the very best.

Today’s market session ended with the a pullback or pause of sorts after the recent run, that is, except for the tech heavy Nasdaq which closed at 12,094.40 (+.48%) edging up to another new record high.  However, the balance off the indices closed lower as the S&P 500 closed at 3,629.65 (-.16%), the Dow 30 closed at 29,872.47 (-.58%), & the small caps on the Russell 2000 finished at 1,845.02 (-.46%). 

The consumer discretionary sector (+.6%), the information technology sector (+.2%), the real estate sector (+.2%) and the utilities sector (+.1%) moved higher while the recently white hot energy sector (-2.4%) and the materials sector (-1.1%) dropped. 

TECH

The heavily weighted & popular FAANGs had a decent day overall and ended as follows:  Apple (AAPL) ($116.03, +.75%), Amazon (AMZN) ($3,185.07, +2.15%), Alphabet (GOOG) ($1,771.43, +.14%), Facebook (FB) ($275.59, -.48%) & Netflix (NFLX) closed at $485/share, +.44%.  

Elon Musk’s Tesla (TSLA) closed at $574/share, +3.35%, now having realized a +39% rise in the past 7 sessions. Chinese EV concern NIO Limited (NIO) closed at $53.69/share .34% after establishing yet another all-time high of $57.20 yesterday. 

Leading provider of zero emission hydrogen engines and fueling solutions, Plug Power (PLUG), closed $26.16/share down -2.1% after establishing a new all time high of $28.70 yesterday. Monday night’s announcement confirmed that they had sold 38M shares priced at $22.25/shares raising a whopping $845.5M which represented about 9.1% of the shares outstanding. 

Jumia Technologies (JMIA), an e-commerce and digital payments company in Africa, closed at $37.61/share up another 23.72% today and reaching yet another new all-time high of $38.86. On November 10th, Jumia reported Q2 2020 earnings highlighting gross profit increased by 22% Y/Y, operating losses decreased by 49% y/y & Jumiapay total payment volume increased by 50% y/y. 

Relatively new addition to the Dow 30, Salesforce (CRM), closed at $246.82/share down 5.4% after it was widely reported that they intend to acquire Slack Technologies (WORK) whose shares shot up +37.6% to close at $40.70/share.

GOLD, SILVER & OIL

Silver prices closed a US $23.41/oz, -+.07 & gold prices closed at US $1,808/oz, -1. North American silver and gold producer Hecla Mining Company (HL) closed at $4.82/share (+2.55%). HL’s 52-week range is $1.40 – $6.79. Recently, Hecla announced Q3 2020 financial and operating results. Phillips S. Baker, Jr., Hecla’s President and CEO stated, “Because of our strong operating performance and higher prices, Hecla had record adjusted EBITDA, generated the most free cash flow in a decade and repaid our revolver in full. These accomplishments were achieved because of our workforces’ resiliency and our commitment to health and safety. With the Lucky Friday ramp-up ahead of schedule, the expected improvements at Casa Berardi, and our modest planned capital expenditures, we are well positioned to further strengthen our balance sheet, increase exploration activities, and pay our enhanced dividend.” Barrick Gold Corporation (GOLD) closed at $24.19/share, -1.1%. 

Oil prices kept moving higher rising 1.9% to end at $45.72/bbl. Chevron (CVX) closed at $92.14/share down 3.64%.

MACRO

The macroeconomic schedule was relatively full today with a couple surprises to the upside. The Initial claims report for the week ending Nov. 21 confirmed a rise by 30k to 778k while continuing claims for the week ending Nov. 14 dropped by 299k to 6.071M. However, New home sales dropped by .3% month/month to 999k in October. Personal income also fell by .7% month/month in October but personal spending increased by .5%. The PCE Price Index was flat. Total durable orders were confirmed to have risen by 1.3% in October and when you exclude transportation, durable orders rose 1.3% month/month. The Q3 GDP stayed pat at 33.1% & the GDP Price Deflator was also flat at 3.6%. The final University of Michigan Index of Consumer Sentiment for November slipped to 76.9. Advance International Trade in Goods deficit move to to $80.3B in October while Advance Retail Inventories rose by .8% & Advance Wholesale Inventories moved up by .9%.

MONEY

The 2-yr treasury yield dropped by 1 basis point to end at .16% while the 10-yr yield moved 2 basis points higher to end at .88%. The U.S. Dollar Index weakened closing at 92.16. 

TOMORROW AND FRIDAY

The market is closed for Thanksgiving but is back open for a full session on Friday. No macroeconomic data is due on Thursday or Friday this week.

WATCH LIST

• Fate Therapeutics, Inc. (FATE) closed at $57.13/share, +3.37% today after establishing a new-all-time record high of $57.15/share.
  • Fate is a clinical-stage biopharmaceutical company dedicated to the development of programmed cellular immunotherapies for cancer and immune disorders.

• • Fate recently reported business highlights and financial results for the third quarter ended September 30, 2020. Scott Wolchko, President and Chief Executive Officer of Fate Therapeutics stated, “The clinical data across our iPSC product platform continue to solidify our conviction that multiple doses of iPSC-derived NK cells can be administered off-the-shelf in the outpatient setting, are well-tolerated, and can drive anti-tumor activity, including in combination with monoclonal antibody therapy. We have now expanded the scope of clinical investigation for FT516 to solid tumors as well as for FT596 to chronic lymphocytic leukemia after observing clinical activity in diffuse large B-cell lymphoma at the first dose level. In addition, we have initiated first-in-human investigation of the first-ever CRISPR-edited, iPSC-derived cell therapy FT538, which incorporates three engineered elements to enhance multiple mechanisms of innate immunity, in acute myeloid leukemia and multiple myeloma.”

• Shares of INVO Bioscience (INVO) closed trading at $3.14/share after recently being added to the Nasdaq. 
  • INVO is a medical device company focused on creating alternative treatments for patients diagnosed with infertility and developers of INVOcell®, the world’s only in vivo Intravaginal Culture System. Industry forecasts suggest that only 1% to 2% of the estimated 150 million infertile couples worldwide are currently being treated. INVO’s mission is to increase access to care and expand infertility treatment across the globe with a goal of improving patient affordability and industry capacity. Since January 2019, INVO Bioscience has signed commercialization agreements in the United States, India, as well as parts of Africa and Eurasia and Mexico for the INVOcell device.

• • Today, INVO filed an 8k highlighting three new partners that they have established to distribute or develop invocell only clinics in Malaysia and North Macedonia. 

• Shares of NeuBase Therapeutics (NBSE) closed at $7.69/share, -4.94% after recently reaching a new 52-week high recently of $11.78/share.
  • NeuBase is developing the next generation of gene silencing therapies with its flexible, highly specific synthetic antisense oligonucleotides. The proprietary NeuBase peptide-nucleic acid (PNA) antisense oligonucleotide (PATrOL™) platform allows for the rapid development of targeted drugs, increasing the treatment opportunities for the hundreds of millions of people affected by rare genetic diseases, including those that can only be treated through accessing of secondary RNA structures. Using PATrOL technology, NeuBase aims to first tackle rare, genetic neurological disorders. NeuBase is continuing its progress towards developing treatment candidates in Huntington’s Disease (HD) and Myotonic Dystrophy (DM1) and is expected to release further data prior to year end 2020.

• • Recently, NeuBase announced the addition of Eriks Rozners, Ph.D. and Randy Davis, MBA to its scientific advisory board (SAB). Dr. Rozners, an expert in nucleic acid biochemistry, and Mr. Davis, a biotechnology industry veteran, bring extensive experience to NeuBase.

• Shares of Atossa Therapeutics (ATOS) closed at $1.57/share. 
  • 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, Atossa announced blinded preliminary results from its Phase 1 clinical study using Atossa’s proprietary drug candidate AT-301 administered by nasal spray. AT-301 was found to be safe and well tolerated in this study at two different dose levels in both single and multiple dose forms over 14 days. AT-301 is being developed for at home use for patients recently diagnosed with COVID-19. There are currently no FDA-approved therapies to treat COVID-19 at home. Learn more.

• • Recently, Edward Woo, CFA, analyst at Ascendiant Capital Markets, Inc. issued an update report raising his price target to $7.50 citing “Q3 inline. Strong potential for its drugs to treat COVID-19 and breast cancer makes stock attractive” after Atossa had announced their financial results for the third quarter ended September 30, 2020, and provided an update on recent company developments On Friday. Contact Edward M. Woo, CFA at 949.259.4932 or ewoo@ascendiant.com to gain access to his report. 

Economic Reports

• On Monday, we received the preliminary Markit PMI and Services reports for November which were positive. 
• On Tuesday, the Conference Board’s Consumer Confidence Index report which ended down at 96.1 in November. The September S&P Case-Shiller Home Price Index report confirmed a rise by 6.6% while the September FHFA Housing Price Index report confirmed a rise by 1.7%.

Investing & Inspiration

“Money is like a sixth sense – and you can’t make use of the other five without it.” – William Somerset Maugham

“Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.” — Albert Einstein

“Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results” — Warren Buffett

“The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett

“Thousands of experts study overbought indicators, head-and-shoulder patterns, put-call ratios, the Fed’s policy on money supply…and they can’t predict markets with any useful consistency, any more than the gizzard squeezers could tell the Roman emperors when the Huns would attack.” – Peter Lynch

“Investing puts money to work. The only reason to save money is to invest it.” – Grant Cardone

“You cannot save time for your future use however you can invest time for your future.” – John F. Heerdink, Jr. 

“Know what you own, and know why you own it.” – Peter Lynch

“Liquidity is only there when you don’t need it.” -Old Proverb

“If you want to be a millionaire, start with a billion dollars and launch a new airline.” – Richard Branson

“Fear incites human action far more urgently than does the impressive weight of historical evidence.” – Jeremy Siegel

“In investing, what is comfortable is rarely profitable.” – Robert Arnott

“Spend each day trying to be a little wiser than you were when you woke up.” – Charlie Munger

“The entrance strategy is actually more important than the exit strategy.” – Edward Lampert

“The rivers don’t drink their own water; Trees don’t eat their own fruits. The sun does not shine for itself, And flowers do not spread their fragrance For themselves. Living for others is a rule of nature” – Pope Francis

“It is impossible to produce superior performance unless you do something different from the majority.” – John Templeton

“An investment in knowledge pays the best interest.” – Benjamin Franklin.

“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

“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