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Tuesday’s Markets Calm Down After Yesterday’s Vax Advance

By John F. Heerdink, Jr.

After Monday’s vaccine fueled advance to record highs, the markets took a bit of a break today as it treaded water throughout prior to dipping to end the day in the red. The large cap indices all closed in the down today as the S&P 500 closed at 3,609.53 (-.48%), the Dow 30 closed at 29,783.35 (-.56%), the tech heavy Nasdaq closed at 11,899.34 (-.21%), however the small caps on the Russell 2000 managed to drive higher and finished the session at 1,791.91 (+.37%).

The macroeconomic schedule produced a number of interesting reports today. The October Retail Sales report confirmed a weaker than expected number as total retail sales moved up just .3% month/month while sales without autos ended up just .2%. September retail sales growth were also adjusted lower to 1.6% from 1.9% & without autos, it was lowered to 1.2% from 1.5%.
Industrial production rose 1.1% month/month in October while the capacity utilization rate moved up to 72.8% however output remains 5.6% lower than the pre-pandemic level in February.
The NAHB Housing Market Index also rose to a new all-time high of 90 in November. Business inventories moved up .7% in September. Import prices ticked down .1% in October while export prices moved up .2% in October.

The heavily weighted & popular FAANGs ended mixed as follows: Apple (AAPL) ($119.39, -.76%), Amazon (AMZN) ($3,135.66, +.15%) (Amazon launched its online pharmacy today), Alphabet (GOOG) ($1,770.15, -.63%), Facebook (FB) ($275, -1.42%) & Netflix (NFLX) closed at $480.63/share, +.32%.  

EV manufacturer Tesla (TSLA) closed at $441.61/share, +8.21% as news that it will be added to the S&P 500 in December hit the world wide web today. Tesla will account for ~1%  of the S&P 500 and be among the top ten most influential stocks in the market-cap weight market index. Chinese EV concern NIO Limited (NIO) closed at $46.59/share up 2.22% after recently establishing all-time high of $54.20. Leading provider of zero emission hydrogen engines and fueling solutions, Plug Power (PLUG), closed $22.98/share off 8.08% after establishing a new all time high of $25.49 yesterday and then announcing Monday night that its offering of 38M shares had priced at $22.25/shares raising a whopping $845.5M which represented about 9.1% of the shares outstanding.. The stock has moved up 104.9% over the recent 3 months since its last raise which was at $10.25 where they raised $300M. 

Palantir Technologies Inc. (NYSE: PLTR), co-founded by famed tech entrepreneur & Chairman Peter Thiel, jumped considerably today closing at $17,85/share, +12.05%. The move came post the reveal that Steve Cohen’s Point72 Asset Management, Anchorage Capital Group and the Soros Fund Management were widely announced to be major shareholders. Recently, PLTR reported its financial results today for Q3 2020 beating wall street’s expectations. They also announced new contracts with U.S. Army and National Institutes of Health & a $300 Million Renewal with Aerospace Customer. Management stated, We generated $289.4 million in revenue in the third quarter of 2020, representing an increase of 52% from the third quarter of 2019, when we generated $190.5 million in revenue. The demand for our software has increased steadily over the past year in the face of significant economic and geopolitical uncertainty in the United States and abroad. We are increasing our guidance for our full-year revenue in 2020 to a range of $1.070 billion to $1.072 billion, which would represent a growth rate of 44% over the prior year, when we generated $743 million in revenue.

Silver prices closed a US $24.54/oz, -.27 & gold prices closed at US $1,883/oz, -7. North American silver and gold producer Hecla Mining Company (HL) closed at $5.27/share (-5.58%). HL’s 52-week range is $1.40 – $6.79. Last week, 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 $25.37/share, -1.89%. 

The 2-yr treasury yield moved lower by 2 basis points to .16% while the 10-yr yield dropped 3 basis points to .87%. The U.S. Dollar Index weakened closing at 92.44. 

 Oil prices rose .2% to end at $41.43/bbl while the energy sector bumped up .5% to lead all sectors. 

TOMORROW

Tomorrow’s macroeconomic calendar will deliver the Housing Starts and Building Permits for October & the weekly MBA Mortgage Applications Index.

WATCH LIST

  • Fate Therapeutics, Inc. (FATE) closed at $52.42/share -.72% today after recently establishing a new-all-time record high of $54.63/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 $3.36/share up 9.8% after recently being added to the Nasdaq last Friday. 
    • 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.
    • Last Friday, INVO announced the pricing of an underwritten public offering of 3,625,000 shares of its common stock at a public offering price of $3.20 per share. The gross proceeds to INVO Bioscience from this offering are expected to be approximately $11.6 million, before deducting underwriting discounts and commissions and other estimated offering expenses. INVO Bioscience has granted the underwriters a 45-day option to purchase up to an additional 543,750 shares of common stock to cover over-allotments, if any. The offering is expected to close on November 17, 2020, subject to customary closing conditions. Shares of their common stock  began trading on Friday, November 13, 2020 under the symbol “INVO” on the Nasdaq Capital Market. Roth Capital Partners acted as the sole book-running manager, with Colliers Securities LLC and Paulson Investment Company, LLC acting as co-managers for the offering. Learn More Now.
    • On Monday, INVO announced financial results for the quarter ended September 30, 2020. Steve Shum, Chief Executive Officer of INVO Bioscience stated, “Sales during the third quarter ended September 30, 2020 increased 37% sequentially over the quarter ended June 30, 2020, driven by higher sales in the United States as our partner Ferring placed additional orders toward the required annual minimum. Although the market for fertility treatment services has been affected by COVID-19 this year, we have utilized this period to put in place what we believe are the necessary and important building blocks to create an organization well positioned to rapidly expand the adoption of the INVOcell solution, and we are starting to recognize the benefit of this work. In our opinion, the additional retrospective data made available this year, which represented the second year of available INVOcell usage data, provides a critically important element for our commercialization efforts. One of our most recent developments included the signing of our second joint venture agreement to open dedicated INVO clinics, this one in Mexico with Dr. Francisco Arredondo and Dr. Ramiro Ramirez. Dr. Arredondo was one of the early adopters of the INVOcell solution while practicing in the United States. We continue to engage in active discussions with additional partners in many of the major fertility markets for both distribution agreements and joint-venture concepts. We also took what we believe were critical and necessary actions to strengthen the Company operationally, financially and functionally which we believe positions us well to execute on our initiatives. These included the hiring of highly accomplished industry individuals to drive the commercialization efforts; the raising of capital required to fund our key commercial and development programs; the appointment of independent board members to meet corporate governance requirements; and the listing of the Company on the Nasdaq. With our strengthened balance sheet, we believe we have the tools, infrastructure and people now in place to drive long-term adoption of INVOcell, grow revenue, achieve profitability and drive shareholder value.” 
  • Shares of NeuBase Therapeutics (NBSE) closed at $8/share, -1.96% 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.
  • Shares of Atossa Therapeutics (ATOS) closed at $1.49/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.
    • Last week 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.
    • This week, 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. 

Markets

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Big Movers

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Bond Markets & US Dollar

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Economic Reports

  • On Monday,  we received the Empire State Manufacturing Survey report which confirmed a drop to 6.3 in November.
  • On Tuesday, we received the October Retail Sales report which confirmed a weaker than expected number as total retail sales moved up .3% month/month while sales with out autos ended up just .2%. September retail sales growth were also adjusted lower to 1.6% from 1.9% & without autos, it was lowered to 1.2% from 1.5%. Industrial production rose 1.1% month/month in October while the capacity utilization rate moved up to 72.8% however output remains 5.6% lower than the pre-pandemic level in February. The NAHB Housing Market Index also rose to a new all-time high of 90 in November. Business inventories moved up .7% in September. Import prices ticked down .1% in October while export prices moved up .2% in October.

Agriculture & Energy

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Biotech & Healthcare

Atossa Therapeutics, Inc. (Nasdaq: ATOS), 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, 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. “We have completed all dosing in this study and we have now evaluated the blinded safety and tolerability data from all participants. There we no serious adverse events, no discontinuations, and only one subject of the 32 subjects in the study experienced adverse events that were considered moderate in severity and all other adverse events were considered mild. Our preliminary assessment is that our AT-301 nasal spray was safe and well tolerated in this study. These results support advancing this program into a Phase 2 study. We are in the process of preparing a pre-IND meeting request with the U.S. FDA which we plan to submit in the next 30 days.” – Steven Quay, M.D., Ph.D., Atossa’s President and CEO. READ THE COMPLETE STORY!

INVO Bioscience (INVO), 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, announced today that it has teamed up with Dr. Francisco Arredondo, MD, a respected and experienced board certified reproductive endocrinologist, and Dr. Ramiro Ramirez, MD, a physician and owner of several successful enterprises in Mexico, to establish a joint venture through its wholly-owned subsidiary INVO Centers, LLC, a Delaware limited liability company (“INVO Centers”), focusing on developing the Mexico market for INVOcell. The new jointly-owned operation, named Positib Fertility, S.A. de C.V. (“Positib Fertility”), is a Mexico registered company that will focus on establishing fertility centers dedicated to offering INVOcell, with the initial center to be located in the city of Monterrey, Mexico. 

Recently, INVO also announced the appointment of two seasoned executives, Barbara Ryan and Matthew Szot, to its board of directors, effective immediately. To make way for their appointments, Kathleen Karloff and Michael Campbell have both agreed to voluntarily step down from their board positions to assist the company in achieving an independent board majority. Mr. Campbell will remain as Chief Operating Officer and Vice President of Business Development, while Ms. Karloff intends to continue to advise the board and assist the operating team on a go-forward basis. Ms. Ryan founded Barbara Ryan Advisors, a capital markets and communications firm, in 2012 following a more than 30-year career on Wall Street as a sell-side research analyst covering the US Large Cap Pharmaceutical Industry. Previously, Ms. Ryan was a Managing Director at Deutsche Bank/Alex Brown and Head of the company’s Pharmaceutical Research Team for 19 years and began her research career covering the Pharmaceutical industry at Bear Stearns in 1982. Ms. Ryan has deep experience in equity and debt financings, valuation, SEC reporting, financial analysis, and corporate strategy across a broad range of life sciences companies. During Ms. Ryan’s career as an analyst, in addition to covering the large-cap pharmaceutical companies, Barbara also covered the drug wholesalers and PBMs and was the lead analyst on many high-profile IPO’s including Express Scripts, PSSI, Henry Schein, and Flamel Technologies. Ms. Ryan has extensive global buy-side, sell-side and financial media relationships, and has provided support and counsel on several of the highest-profile deals in the biopharma industry, including Shire/Abbvie, Shire/Baxalta, and Allergan/Valeant. Barbara led the IR/PR programs for Radius Health, the best performing IPO of 2014, for 4 years, Eloxx Pharmaceuticals for the past two years, and served on the Executive Team at both companies. Ms. Ryan has provided strategic communications counsel for Cardinal Health, Purdue, Zoetis, Radius Health, Eloxx Pharmaceuticals, Agenus, Centrexion, Esperion, ContraFect, Relypsa, Shire, Allergan, and Perrigo. Ms. Ryan’s opinions and expertise are widely sought; she is frequently quoted in the press and appears on CNBC. Ms. Ryan currently serves on Pharmaceutical Executive’s Editorial Advisory Board, the Executive Advisory Board for the Prix Galien Foundation is a member of the Life Sciences Council of Springboard Enterprises and is a member of the Board of Directors of Gilda’s Club NYC, and a Faculty member at the GLG Institute. Ms. Ryan Chaired the Board of Villa Maria School, a school for children with learning disabilities, for 8 years. Ms. Ryan is the Founder of Fabulous Pharma Females, a non-profit dedicated to the advancement of women in the biopharmaceutical industry.

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Financials & Fintech

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Technology & Beyond

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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

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