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Stock Market Follows Through Nicely On Hump Day – $AAPL $BIRD $DIS $FORG $INM $NBSE $TSLA Rise!

By John F. Heerdink, Jr.
 
 
“A successful society is characterized by a rising living standard for its population, increasing investment in factories and basic infrastructure, and the generation of additional surplus, which is invested in generating new discoveries in science and technology.” – Robert Trout, American – Journalist October 15, 1909 – November 14, 2000
 
 
Hump Day’s market session proved to be quite positive after stumbling out of the gate. On the backside of yesterday’s surge that was fueled by Biden’s bullish Omicron position speech, the markets closed up nicely across the board. Eleven of the 11 sectors closed in the green today with the consumer discretionary sector jumping 1.7% to lead all sectors.  The macroeconomic schedule produced solid reports as the third estimate for Q3 GDP confirmed an upward revision to 2.3%, while the GDP Price Deflator was revised slightly higher to to 6%  The Conference Board’s Consumer Confidence Index report showed a rise to 115.8 in December. The existing home sales report showed a 1.9% M/M rise in November to a seasonally adjusted annual rate of 6.46M, however total sales in November came in 2% lower from a year ago. The weekly MBA Mortgage Index also dropped .6%, while the Purchase Index dropped 3.3% & the Refinance Index moved up 2.2%.  The yield curve moved lower with the 2-yr yield closing flat at .665% & the 10-yr yield falling 3 basis points to 1.46%.  The U.S. Dollar Index moved lower by .39% to 96.12, gold prices popped back over $1800 to close at $1,804/oz., +$13/oz., silver closed at $22.80, +$.30, & Bitcoin (BTC) closed at $48,833.22, -.61%.
 
In turn, the major indices closed significantly higher as follows: the S&P 500 closed at 4,696.56 (+1.02%), the Dow 30 closed at 35,753.89 (+.74%), & the Nasdaq closed at 15,521.89 (+1.18%). The small caps on the Russell also moved higher closing at 2,221.90 (+.86%), while the micro caps moved higher in virtual lock step as the iShares Micro-Cap ETF (IWC) closed at $138.94, +.97% as bids were ample. The SPDR S&P Biotech ETF (XBI), a barometer of the smaller biotech stocks, closed slightly lower at $116.52, -.05% and as it tries to push through this resistance level again. The 52-wk range is $106.88 – $174.79.
 
Can we make another overall move up again tomorrow?  I would not be surprised, but it does feel like it might have to dip again early and being the last day of trading prior to the Christmas holiday maybe investors take some cash off the table for the 3-day weekend!
 
 
 
VP WATCHLIST UPDATES
 
Apple (AAPL) closed at $175.64, +1.53% & Tesla (TSLA) closed at $1008.87 jumping a meaty 7.49% after yesterday’s +4.29% move. According to Bloomberg, Elon Musk said on Twitter that he’s “almost done” trimming his stake in Tesla Inc. hours after telling a satirical website that he already reached his target of reducing his stake in the electric-auto maker by 10%.   Musk, now 50 yers old, is the world’s richest person and stands atop the Bloomberg Billionaires Index with a fortune of $260.9B. The Walt Disney Company (DIS) closed at $151.88, +.55%. Horacio Gutierrez has been named Senior Executive Vice President, General Counsel and Secretary of The Walt Disney Company. Mr. Gutierrez joins Disney from Spotify, where he has served as Head of Global Affairs and Chief Legal Officer. His appointment is effective February 1, 2022, and he will report directly to Mr. Chapek. Mr. Gutierrez will succeed longtime Disney veteran Alan Braverman who, as was announced in July, is retiring after nearly two decades as General Counsel. Prior to joining Spotify, Mr. Gutierrez was Corporate Vice President and General Counsel for Microsoft, overseeing the company’s legal affairs around the world, including support of the complete lifecycle of Microsoft’s products and services, from research and development to business development activities, M&A, litigation, legal compliance, and cybercrime prevention. He initially joined Microsoft in 1998 as Corporate Attorney, LATAM, and held a number of positions of increasing responsibility throughout the legal department during his 17-year tenure with the company, including Associate General Counsel, EMEA from 2002 to 2006; Deputy General Counsel, Intellectual Property and Licensing Group from 2006 to 2014; and Deputy General Counsel, Products and Services Group from 2014 to 2015. Disney will hold its annual meeting of shareholders on Wednesday, March 9, 2022 at 1:00 p.m. ET / 10:00 a.m. PT by virtual meeting and will be made available via webcast at www.disney.com/investors.
 
On the small side, Atossa Therapeutics (NASDAQ: ATOS), a clinical-stage biopharmaceutical company seeking to develop innovative proprietary medicines in oncology and infectious disease with a current focus on breast cancer and COVID-19, rose to an intraday high of $1.87 prior to closing at $1.84, -1.08% on 2.322M shares of trading volume. Today, Atossa announced that it has initiated enrollment of its Phase 2 clinical study of oral Z-Endoxifen in Sweden. Participants in the study will be premenopausal women with elevated mammographic breast density, which is an emerging public health issue affecting more than 10 million women in the United States and many more worldwide. “This is an extremely important milestone as it marks the next phase of developing our proprietary Z-Endoxifen,” said Steven Quay, M.D., Ph.D., Atossa’s Chairman and CEO. “This study will help determine the relationship between daily doses of Endoxifen and reduction in breast density and will help us further assess safety and tolerability. We look forward to providing progress updates as they become available.” Physician-Scientist and CEO of Atossa, Steven Quay, MD, PhD, recently published an e-print on his research into a new coronavirus, named BANAL-236, reported by the Institut Pasteur in September 2021. At the time, BANAL-236 was the first bat coronavirus with high homology to SARS-CoV-2 that could directly infect human cells using the same receptor that SARS-CoV-2 uses. The new research reports that BANAL-236 has evolved the ability to infect human cells by an unknown mechanism that violates over 40 years of coronavirus research. The COVID-19 e-print is available here and has also been submitted to Nature. “When I read the paper from the Institut Pasteur and looked at the virus, I immediately assumed there was an error in either the way the sequence was assembled or a mix up in the lab with another virus to explain the infectivity,” Quay said. “I contacted the Institut Pasteur with my findings and was deeply disturbed to learn that there was not, in fact, some simple mistake had occurred to explain things. I now knew we were in uncharted waters with a virus that is missing eight key elements that have been shown, over 40 years of research, to be required for growth.” Atossa management also recently presented at  “A Town Hall Q&A Event With Atossa Therapeutics Management Team” with Tribe Public. You can view it clicking here. Atossa also announced recently that it had completed a pre-investigational new drug (PIND) meeting with the FDA to obtain input from the FDA on pre-clinical, clinical, manufacturing and regulatory matters in the U.S. for Atossa’s proprietary Z-endoxifen to treat breast cancer in the neoadjuvant (prior to surgery) setting.
 
On Monday, Fate Therapeutics, Inc. (NASDAQ: FATE), a clinical-stage biopharmaceutical company dedicated to the development of programmed cellular immunotherapies for patients with cancer, showcased positive interim Phase 1 data from the Company’s FT596 program for patients with relapsed / refractory B-cell lymphoma (BCL) at the 63rd American Society of Hematology (ASH) Annual Meeting and Exposition. FT596 is the Company’s off-the-shelf, multi-antigen targeted, iPSC-derived natural killer (NK) cell product candidate derived from a clonal master induced pluripotent stem cell (iPSC) line engineered with three anti-tumor functional modalities: a proprietary chimeric antigen receptor (CAR) optimized for NK cell biology that targets B-cell antigen CD19; a novel high-affinity, non-cleavable CD16 (hnCD16) Fc receptor that has been modified to prevent its down-regulation and to enhance its binding to tumor-targeting antibodies; and an IL-15 receptor fusion (IL-15RF) that augments NK cell activity. “The interim dose-escalation clinical data from our FT596 program in relapsed / refractory B-cell lymphoma demonstrate that off-the-shelf, iPSC-derived CAR NK cells can bring substantial therapeutic benefit to heavily pre-treated patients in urgent need of therapy, with high response rates and meaningful duration of responses,” said Scott Wolchko, President and Chief Executive Officer of Fate Therapeutics. “We are particularly pleased with the therapeutic profile that has emerged with FT596 in combination with rituximab, where over half of the patients treated with a single dose of FT596 at higher dose levels achieved a complete response with a favorable safety profile that is clearly differentiated from CAR T-cell therapy. We look forward to assessing a two-dose treatment schedule for FT596 to further define its potential best-in-class therapeutic profile and ability to reach more patients, including those earlier in care.” Shares of FATE closed at $64.10, +1.26%. 
 
InMed Pharmaceuticals Inc. (NASDAQ: INM), a leader in the development, manufacturing and commercialization of rare cannabinoids, closed at $1.48, +.68% after hitting an intraday high of $1.50. This week, InMed announced that a peer-reviewed scientific article entitled “Cannabinol Modulates Neuroprotection and Intraocular Pressure: A Potential Multi-Target Therapeutic Intervention for Glaucoma”, has been published in Biochimica et Biophysical Acta (BBA – Molecular Basis of Disease), a leading international journal focused on biochemistry and molecular genetics of disease processes and models of human disease in the area of aging, cancer, metabolic-, neurological-, and immunological-based diseases. The peer-reviewed article highlights research evaluating the use of cannabinol, or CBN, as a potential treatment option for glaucoma. Several studies were conducted to evaluate the survival of retinal ganglion cells, modulation of intraocular pressure and its effects on extracellular matrix proteins using in vitro and in vivo glaucoma models. These studies resulted in two key findings: first, CBN may promote neuroprotection of cells in the retina that are responsible for vision; and second, CBN may normalize intraocular pressure by attenuating changes in the extracellular matrix proteins. The article also reports on the comparison of CBN with other cannabinoids, including cannabidiol (CBD) and tetrahydrocannabinol (THC), with results indicating that CBN has a stronger effect and broader neuroprotective therapeutic range. These observations elucidate the therapeutic potential for CBN in the treatment of glaucoma.
 
INmune Bio, Inc. (NASDAQ: INMB), a clinical-stage immunology company focused on developing treatments that harness the patient’s innate immune system to fight disease, recently presented data at the San Antonio Breast Cancer Symposium showing mucin 4 (MUC4) expression predicts worse survival and is a treatment resistance factor in women with triple negative breast cancer (TNBC). INB03, a DN-TNF therapy, can reverse TNBC treatment resistance by decreasing expression of MUC4 and reducing immunosuppression in the tumor microenvironment (TME) by increasing anti-tumor macrophage phagocytosis and increasing lymphocyte function in the TME. The poster will be presented by Dr. Roxana Schillaci, Instituto de Biología y Medicina Experimental, Buenos Aires, on December 10th. RJ. Tesi, M.D, Chief Executive Officer of INmune Bio, commented, “We are excited to have Dr. Schillaci present these data that expand on her previous findings on the role of MUC4 expression which predicts worse survival and resistance to therapy in HER2+ breast cancer therapy. Now, in both TNBC and HER2+ breast cancer, MUC4 predicts resistance to immunotherapy and an immunosuppressive TME that can be overcome with INB03.” Treatment with INB03 in murine models of breast cancer improves macrophage anti-tumor phagocytic activity, lymphocyte infiltration and function suggesting improved response to combination therapies of INB03 with inmunotherapy. Shares of INMB closed trading today at $1o.20, -3.23%. 
 
Shares of INVO Bioscience, Inc. (NASDAQ: INVO), a medical device company focused on commercializing the world’s only in vivo culture system (IVC), INVOcell®, closed at $3.66 trading 120,990 shares after hitting an intraday high of $3.8899, but still well off of its 52-wk high of $12.30. A sell side analyst named Kyle Bauser, PhD. at Colliers Securities recently published his Buy Rating Report with a $6 Price Target. Last week, INVO Bioscience, Inc. announced that it has entered into an expanded agreement with Ovoclinic, a group of clinics specialized in assisted reproductive treatments with four locations across Spain (Madrid, Marbella, Málaga, Ceuta) and collaborating centers around Europe, to accelerate adoption of INVOcell within their markets. The agreement includes the expanded adoption of INVOcell within Ovoclinic locations as well as establishing an INVO Center of Excellence for future training for the European Market. Cristina Gonzalez, embryologist and Quality Manager of Ovoclinic laboratories stated, “After several successful trials implementing the exciting INVOcell fertility treatment, Ovoclinic aims to provide its patients with this effective alternative to the processes used so far in Spain in the field of reproductive medicine. We consider INVOcell to be an effective method of natural reproduction that involves the future mother at the very first moment of the process. We are confident that this innovative treatment will help many patients to choose this new alternative solution to achieve their dream of forming a family by actively participating in the reproductive process.” According to the World Bank, Spain, with total population of approximately 47 million people, has one of the lowest fertility rates in Europe, affecting approximately 15% of the population, or one in seven couples of reproductive ages. According to reports, in 2010, there were approximately one million couples requesting assisted reproductive treatment, however only 22% received one or more assisted reproductive treatment cycles. The average waiting time for an IUI or IVF cycle in a public health facility was 339 days. Ovoclinic reports that they maintain the best technical and human resources to deal with all kinds of infertility problems along with the simplest and most natural treatments to the most complex and advanced techniques pioneered in Spain. Ovoclinic also works in partnership with Ovobank, the first European Donor Egg Bank in Europe.
 
Shares of Hecla Mining Company (NYSE: HL), the largest silver producer in the United States closed at $5.29, +1.15%. 
 
Shares of NeuBase Therapeutics (NASDAQ: NBSE) a biotechnology platform company Drugging the Genome™ to address disease at the base level using a new class of precision genetic medicines, closed  at $2.90, +1.05%. Dietrich A. Stephan, Ph.D., Chief Executive Officer of NeuBase, presented in person at the Jefferies London Healthcare Conference recently.
 

FURTHER AFIELD

Shares of Allbirds, Inc. (BIRD) closed at $17.41, +20.48%.  On November 30, Allbirds, Inc., a global lifestyle brand that innovates with naturally derived materials to make better footwear and apparel products in a better way, today reported financial results for the third quarter of 2021 ended September 30, 2021. Net revenue rose 33% to $62.7 million compared to the third quarter of 2020 and increased 40% versus the third quarter of 2019. Gross profit increased 36% to $33.9 million compared to the third quarter of 2020; gross margin expanded 120 basis points from the third quarter of 2020 to 54.1%. Allbirds went public via IPO on Nov. 2 at $15/share. 

ForgeRock® (NYSE: FORG, $25.75, +14.04%), a global leader in digital identity, today announced two significant new features to the ForgeRock Identity Cloud called Organizations and Themed User Journeys. These new features build on ForgeRock’s unique ability to serve all identity types from one platform to help enterprises reduce costs and increase brand loyalty with more secure and highly personalized customer experiences without the need for costly customization. ForgeRock’s new capabilities provide a unified system for managing all identities, such as business partners and vendors, which require particular configurations and privileges. At the same time, these new features help to ensure that every touchpoint along a buyer’s journey feels personal and effortless. This is especially useful for companies that manage multiple brands and want to deliver personalized experiences across a variety of identity profiles – such as customers, partners, and vendors – and have a single view of all identities.

According to Bloomberg, Triller, a social-video platform, agreed to a merger with Seachange International Inc. in a move that will take the smaller rival to TikTok public. The transaction will value Triller at about $5 billion — a four-fold increase over its recent valuation of $1.25 billion, according to PitchBook. 

Economic Reports

On Monday, the Conference Board’s Leading Economic Index (LEI) that confirmed a 1.1% rise in November. 

On Tuesday, the macroeconomic schedule also the Current Account Balance report for Q3 which came in at $214.8B , while the Q2 deficit was revised up to $198.3B.

On Wednesday, the third estimate for Q3 GDP confirmed an upward revision to 2.3%, while the GDP Price Deflator was revised slightly higher to to 6%  The Conference Board’s Consumer Confidence Index report showed a rise to 115.8 in December. The existing home sales report showed a 1.9% M/M rise in November to a seasonally adjusted annual rate of 6.46M, however total sales in November came in 2% lower from a year ago. The weekly MBA Mortgage Index also dropped .6%, while the Purchase Index dropped 3.3% & the Refinance Index moved up 2.2%.

Investing & Inspiration

  1. “A successful society is characterized by a rising living standard for its population, increasing investment in factories and basic infrastructure, and the generation of additional surplus, which is invested in generating new discoveries in science and technology.” – Robert Trout
  2. “The best preparation for tomorrow is doing your best today.” – H. Jackson Brown, Jr.
  3. “Friendship marks a life even more deeply than love. Love risks degenerating into obsession, friendship is never anything but sharing.” – Elie Wiesel
  4. “Investing in women’s lives is an investment in sustainable development, in human rights, in future generations – and consequently in our own long-term national interests.” – Liya Kebede
  5. “Success isn’t measured by money or power or social rank. Success is measured by your discipline and inner peace.” – Mike Ditka
  6. “No matter how many goals you have achieved, you must set your sights on a higher one.” – Jessica Savitch 
  7. “Start where you are. Use what you have. Do what you can.”– Arthur Ashe
  8. “The secret of getting ahead is getting started.” – Mark Twain
  9. “The amount of work and the amount of both physical and emotional investment it takes to get to the top.” – Drew Bledsoe

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