“S&P 500, Nasdaq & Dow Achieve New Highs…Twitter, Hecla & Isoray Pop”

By John Heerdink LinkedIn Disclaimer
Thursday’s trading session saw the S&P 500, Nasdaq & Dow achieve new highs. This trifecta of advances was charged with an initial claims report for the week ending February 1 confirming a drop by 15k to 202k. A positive chess move in the US-China trade war was also announced that confirmed that China will make a 50% cut in tariffs on $75B of U.S. imports on Feb. 14 making today and Valentine’s Day even more special. The Nasdaq again advanced to another new record high closing at 9,572.15, +.67%. The S&P 500 also jumped to a new record high closing at 3,345.78, +.33% as the communication services, +1.1%, and the information technology, +0.9% sectors led the charge while the energy sector, -1% finished in the red. Completing the hat trick we saw the Dow Jones Industrial Average closed at a new record high too at 29,379.77, +.30%. However, the Russell 2000 moved lower by -.27% ending at 1,677.46. The FAANG stocks had a mixed/flat day. Facebook (FB) closed at $210.85/share, +.35%. Alphabet (GOOG) closed at $1476.23/share, +1.93% after it reported mixed results recently. Amazon (AMZN) closed at $2,050.23/share, +.51%.  Apple (AAPL) closed at $325.21/share, +1.17%. Netflix (NFLX) closed at $366.95/share, -.74%. The “fear gauge” Vix (TVIX) ended at $42.50/share pulling back by -1.% and traded in $42.01 – $44.25.

Markets

Symbol Name Last Price Change % Change

Big Movers

Shares of Twitter closed at $38.41/share, +15.03% after reporting strong user numbers (+21% increase in avg/daily users to 152M) and beating revenue forecasts however missing on the earnings front coming in at $1.01B and $.25/share respectively.

Shares of Isoray (ISR) advanced +8.66% closing at $.91/share. Earlier this week ISR announced an executed agreement with MIM Software to deliver a novel one-stop-provides-all program to treat head and neck cancer. The new offering bundles MIM’s software technology and Isoray’s industry-leading Cesium Blu™, also known as Cesium-131, brachytherapy expanding treatment options and access for physicians and patients. Cesium Blu brachytherapy delivers a highly targeted treatment to the site of the disease, preserving healthy tissue and organs. Isoray CEO Lori Woods said this is an important development in the treatment of head and neck cancers. “Our initiative with MIM Software represents another step forward in the treatment of hard to treat cancers. As the industry leader in brachytherapy, we are committed to providing the best ways to bring new and efficient treatment solutions to clinicians and the patients they treat. We believe this new brachytherapy treatment package will make an important contribution to achieving that goal because it expands physician and patient access to a cutting-edge approach to the treatment of head and neck cancers.”

Shares of Hecla Mining Company (HL) jumped +11.43% closing at $3.43/share after announcing fourth-quarter and full-year 2019 financial and operating results that beat Wall Street expectations and advancing operations. Phillips S. Baker, Jr., President and CEO stated, “2019 was a tale of two halves where the second half had higher production, higher prices, better earnings and more cash flow. The strong third and fourth quarters markedly improved our financial condition, putting us in a better position to refinance the Senior Notes. In 2020, at current prices, we expect continued strong cash flow generation with the ongoing solid performance at Greens Creek, the ramp-up of Lucky Friday, expected improvements at Casa Berardi and the potential mine life extension at San Sebastian from the Hugh Zone.”

Symbol Name Last Price Change % Change

Bond Markets & US Dollar

Treasuries’ yields stayed relatively flat today. The 2-yr yield closed even at 1.45% while the 10-yr yield dropped 1 basis point closing at 1.64%. The U.S. Dollar Index strengthened closing at 98.49 up +.2%.

Symbol Name Last Price Change % Change

Economic Reports

On Monday we received the ISM Manufacturing Index report for January which moved up to 50.9% & back into the expansion mode level. However total construction spending went down by -.2% month/month in December while residential spending moved higher bu +1.4% month/month & nonresidential spending lowered by -1.2% month/month.

On Tuesday, we received The Factory Orders Report which confirmed a rise of +1.8% month/month in December.

On Wednesday the ISM Non-Manufacturing Index Report for January clocked in a 55.5% reading in December. The Trade Balance report for December confirmed growth in the deficit to $48.9B. The ADP Employment Change report confirmed an estimated 291k jobs were created to private-sector payrolls in January. The weekly MBA Mortgage Applications Index rose 5%.

On Thursday, the Initial claims report for the week ending February 1 dropped by 15k to 202k while continuing claims for the week ending January 25 moved higher by 48k to 1.751Mn. The BLS reported that nonfarm business sector labor productivity rose by +1.4% in Q4 while unit labor costs rose +1.4%/

Agriculture & Energy

Oil prices rebounded today closing at $50.97/bbl, +.2% as reduced concerns regarding the coronavirus situation seem to improve the global growth picture but the energy sector dropped -1%.

Symbol Name Last Price Change % Change

Biotech & Healthcare

The S&P 500 healthcare sector closed at 1209.05, +.11%.

The Ishares Nasdaq Biotechnology ETF (IBB) closed at $122.47/share, +.75%.  The 52-wk range is $96.03 – $123.74.

The NYSE Arca Biotech Index (^BTK) closed at 5,157.44, +.32%.

Johnson & Johnson (JNJ) closed at $153.52/share, -.3%.

Shares of Atossa Therapeutics,  Inc. (NASDAQ: ATOS), a clinical-stage pharmaceutical company developing novel therapeutics and delivery methods to treat breast cancer and other breast conditions,  closed trading today at $1.50/share. Maxim Group’s Sell-side Biotech Analyst Jason McCarthy recently issued an update report upgrading ATOS shares to a Buy with a $4/share 12-month price target, stating that the company is “ready to advance its modified-release oral tablet of endoxifen to a P2 study for the treatment of mammographic breast density (MBD).”

Last week,  Atossa issued the following letter from Dr. Steven C. Quay, President, and CEO, to Atossa shareholders:

To Our Valued Shareholders:

I begin this letter with a sense of great pride about our accomplishments at Atossa. During 2019, we focused on developing our proprietary drug Endoxifen to reduce mammographic breast density (MBD) and to treat breast cancer after a woman is diagnosed but before her surgery. We advanced our goal of developing our intraductal microcatheter technology to deliver drugs and immunotherapies to treat breast cancer. Recent highlights in advancing our goals include:

Oral Endoxifen for MBD. Our lead program is to develop our proprietary oral Endoxifen to reduce MBD. MBD is an emerging public health issue affecting over 10 million women in the United States. Studies conducted by others have shown that MBD increases the risk of developing breast cancer and that reducing MBD can reduce the incidence of breast cancer. In 2019, we completed additional Phase 1 work with our oral Endoxifen, and, in December 2019, we contracted with South General Hospital in Stockholm, Sweden to conduct a Phase 2 study of our proprietary oral Endoxifen to reduce MBD. READ THE COMPLETE LETTER

This week I also had the distinct pleasure of interviewing Kyle Guse (pictured above), Chief Financial Officer of Seattle-based Atossa Therapeutics (NASDAQ: ATOS). a clinical-stage biopharmaceutical company developing novel, proprietary therapeutics and delivery methods for breast cancer and other breast conditions. They believe their innovative therapies and delivery methods can transform breast cancer treatment– with the goal of preventing breast cancer from developing in the first place to increase the odds of surviving for those who do develop this deadly disease. Mr. Guse has served as Chief Financial Officer, General Counsel and Secretary since January 2013. His experience includes more than 20 years of counseling life sciences and other rapid growth companies through all aspects of finance, corporate governance, securities laws, and commercialization. REVIEW THE HIGHLIGHTS.

Atossa announced that Kyle Guse, CFO will present a corporate overview at the 22nd Annual BIO CEO & Investor Conference being held on February 10 and 11, 2020, at the New York Marriott Marquis in New York City. Mr. Guse will present on Tuesday, February 11, 2020, at 10:45 am ET, in the Ziegfeld room. Mr. Guse will also be available for one-on-one meetings on February 11, 2020.

 

INVO Bioscience, Inc. (IVOB) 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. Recently, The Crain’s Chicago Business publication wrote an interesting and related story highlighting how and why another fertility clinic is launching INVOcell to their patients titled: “A less expensive, more predictable alternative to in vitro”: Vios Fertility Institute is a leader in launching InvoCell, which costs half that of in vitro, and anecdotal evidence suggests fertilization rates are higher with it. READ COMPLETE STORY.

Today, INVO announced receipt of Institutional Review Board (IRB) approval to commence its planned clinical trial to evaluate the modified INVOcell system for the effectiveness of achieving fertilization, implantation, embryo development, clinical pregnancy, and live birth after 5-days of continuous vaginal incubation. The objective of this study is to assess the efficacy, comfort, and retention of the INVOcell with the retention device, and demonstrate superiority following 5-day vaginal incubation as compared to current 3-day vaginal incubation indication. The pivotal trial (clinicaltrials.gov identifier: NCT04246268) is a single-arm, multicenter, open-label trial at three clinical centers in the United States with each center enrolling 60 patients between the ages of 18 and 37 years old. The providers at each center will conduct the processes of ovarian stimulation, egg retrieval and embryo transfer per the standard protocols for their centers. Patient recruitment at each site has begun.

Currently, in the United States, 62% of fresh embryo transfers are performed on Day 5 and 30% on Day 3 (CDC Assisted Reproductive Technology report, 2016 data).

“Expansion of our label to 5-day continuous vaginal incubation is a key objective as we look to enhance the INVOcell procedure beyond its currently approved 3-day use and align with the current standards within the fertility industry,” commented Steve Shum, CEO of INVO Bioscience. “Now that we have begun recruitment, we look forward to the clinical sites commencing enrollment shortly.”

INVO Bioscience’s U.S. distribution partner, Ferring Pharmaceuticals, is providing MENOPUR® (menotropins for injection) at no cost to clinical participants. Per terms of an existing commercialization agreement, INVO Bioscience will receive a $3 million milestone payment from Ferring, upon successful FDA-clearance for 5-day continuous vaginal incubation. LEARN MORE.

Symbol Name Last Price Change % Change

Consumer Goods & Trends

Shares of Boeing (BA) closed at $341.43/share, +3.6% as it was reported that the FAA will approve Boeing’s design fixes to their maligned 737 MAX.

Shares of Coca-Cola (KO) closed at $58.99/share, up by +.24% today after recently beating Wall Street’s expectations as new products case volume gained 3% and are boosting revenue.

Shares of Nike (NKE) closed at $100.27/share, -.27% today after UBS upgraded to a Buy this week.

Shares of Disney (DIS) closed at $142.70/share, +.94%. Disney reported this week beating Wall Street’s estimates and came in with 26.5 million Disney+ subscribers vs the 20-25 million that was expected, however, it also confirmed that the coronavirus is going to have a negative impact on their financial results.

Symbol Name Last Price Change % Change

Financials & Fintech

Shares of Morgan Stanley (MS) closed at $54.99/share, +1.8% after beating earnings expectations recently.

Shares of JPMorgan Chase (JPM) closed at $137.59/share, +1.70% after they beat earnings expectations recently.

Shares of Goldman Sachs (GS) closed trading at $244.30/share, +.98% after disappointing with their financial results recently.

American Express (AXP) closed at $133.60/share, +1.33%.

Visa (V) closed trading at $202.81/share, -.37% and recently agreed to acquire Plaid for $5.3B. Plaid is a fintech firm that connects apps to consumers’ data in the banking system that works with Venmo, Coinbase, etc.

Symbol Name Last Price Change % Change

Materials & Natural Resources

Gold prices closed at $1,568.90/0z, -07%.

Silver closed lower at $17.79/oz, -.19%.

First Majestic Silver (AG) closed at $9.90/share, +1.64%. AG recently hit a new 52-wk high of $12.26/share. On Jan. 21 First Majestic announced the Company’s 2020 production and cost guidance including capital investments and future growth initiatives. Keith Neumeyer, President & CEO stated, “For 2020, our focus remains on adopting new innovation projects to modernize our processing plants to achieve higher recoveries, improve efficiencies and reduce operating costs. We have witnessed significant benefits from high-intensity grinding at our Santa Elena operation in 2019 and we plan to install the same technology at San Dimas in 2020. In addition, we continue to advance underground development activities at the Ermitaño project near Santa Elena to prepare the mine for initial production in early 2021. Our increased investments in underground development and innovation in 2020 is expected to result in significant production growth in 2021 and beyond.” SEE COMPLETE STORY.

Shares of Hecla Mining Company (HL) jumped +11.43% closing at $3.43/share after announcing fourth-quarter and full-year 2019 financial and operating results that beat Wall Street expectations and advancing operations. Phillips S. Baker, Jr., President and CEO stated, “2019 was a tale of two halves where the second half had higher production, higher prices, better earnings and more cash flow. The strong third and fourth quarters markedly improved our financial condition, putting us in a better position to refinance the Senior Notes. In 2020, at current prices, we expect continued strong cash flow generation with the ongoing solid performance at Greens Creek, the ramp-up of Lucky Friday, expected improvements at Casa Berardi and the potential mine life extension at San Sebastian from the Hugh Zone.”

Symbol Name Last Price Change % Change

Technology & Beyond

The FAANG stocks had a mixed/flat day. Facebook (FB) closed at $210.85/share, +.35%. Alphabet (GOOG) closed at $1476.23/share, +1.93% after it reported mixed results recently. Amazon (AMZN) closed at $2,050.23/share, +.51%.  Apple (AAPL) closed at $325.21/share, +1.17%. Netflix (NFLX) closed at $366.95/share, -.74%.

 

Symbol Name Last Price Change % Change

Investing & Inspiration

“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

Symbol Name Last Price Change % Change

Tomorrow

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

  • The weekly Initial & Continuing Claims Report
  • The preliminary Q4 readings for Productivity &
  • The Unit Labor Costs

Videos

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