In this shortened holiday trading day, where the markets closed at 1 pm eastern, we were served an early and brilliant fireworks display in the form of a record day for the S&P 500, Dow and the Nasdaq. The S&P 500 moved up 22.81 points and closed at 2,995.82 up .77% on the day. The Dow added 179.32 points closing up .67% ending at the high of the day of 26, 966.00 and very close to 27k. The tech-heavy Nasdaq closed at 8,170.23 up .75% up 61.14 points. The Russell 2000, the small-cap stock market index representing the bottom 2,000 stocks in the Russell 3000 Index gained 11.58 points closing at 1,572.12 up .74%.In this session that was not the most active, as many investors had already pushed off to enjoy the 4th of July holiday week activities, the markets received some relatively significant and weak economic data which pushed forward the belief that an interest rate cut lies ahead of us which helped buoy the market. The data included the following:
- The ISM Non-Manufacturing Index dropped to 55.1% in June from 56.9% in May pointing to a slowdown in growth in the non-manufacturing sector
- Factory orders declined 0.7% in May after declining 1.2% in April indicating that orders for nondefense capital goods orders, excluding aircraft increased 0.5% versus a 0.4% increase seen in the advance durable goods orders report.
- The U.S. trade deficit widened to $55.5 billion in May from $51.2 billion in April indicating that the average real trade deficit in Q2 is 2.3% greater than the Q1 average.
- Initial claims for the week ending June 29 decreased by 8,000 to 221,000 while continuing claims for the week ending June 22 also decreased by 8,000 to 1.686 million indicating that initial claims continue to run at relatively low levels suggesting that employers remain reluctant to reduce the size of their workforce.
Big tech stocks glided higher again today. Amazon (AMZN) gained .24% closing at 1,939.00, Alphabet (GOOG) moved higher by .93% closing at $1,121.58, Apple (AAPL) was up .83% closing at $204.41, Facebook (FB) finished higher too at $197.20 up 1.13%. Shares of Microsoft (MSFT) gained .64% closing at $137.46. Chipmaker Intel (INTC) ended up .83% closing at $48.52/share & Micron (MU) shaved another .03% closing at $39.59 after its recent charge higher post beating earinings estimates.
Institutional alternative asset manager Och-Ziff Capital Management Group (OZM) closed at $23.92 up 1.92% after achieving another new 52-wk high of $24.36 earlier this week. The 52-wk range is $8.60 – $24.36. OZM sports a 4.26% cash dividend. Los Angeles-based Colony Capital (CLNY) a leading global investment management firm with assets under management of $43 billion closed at $5.08 up .59%. CLNY pays an 8.71% cash dividend.
Nike (NKE) closed at $86.20 moving up a solid 1.46%. Nike recently missed analyst earnings estimates but maintained full-year guidance.
The health care sector moved higher again today & rising towards the end of the day. The S&P 500 healthcare sector closed at 1093.05 up .91%. Community Health Systems, Inc. (CYH) one of the largest publicly traded hospital companies in the US hit an intraday high of $2.82/share & a low of $2.7153 today and closed flay on the day at $2.73 on 976,656 shares of trading. On June 27th CYH announced that its subsidiaries signed a definitive agreement to sell 92-bed Bluefield Regional Medical Center in Bluefield, West Virginia, and its associated ancillary healthcare operations to subsidiaries of Princeton Community Hospital. The hospital included in this transaction is among the additional planned divestitures discussed on the Company’s Q1 2019 earnings call. Also, note there has been more insider buying occurred recently as Michael Dinkins bought shares at $3.168/share on 5/28/19 according to the latest Form 4 filed at SEC.gov. Michael Dinkins has served on our Board of Directors since December 2017. Mr. Dinkins has served as president and chief executive officer of Dinkins Financial, a consulting firm that helps small businesses gain access to capital, since October 2017. See our story more details: INSIDER BUYING ALERT: Community Health Systems, Inc. (CYH) Director Michael Dinkins. The Ishares Nasdaq Biotechnology ETF (IBB) jumped 1.17% closing at $110.93. This sector has been on a more than healthy run over the last 30 days. The 52-wk range is $89.01 – 122.97. AquaBounty Technologies, Inc. (AQB), a biotechnology company focused on enhancing productivity in the aquaculture market closed today’s trading at $3.48/share up a strong $.40/share or 12.99%. The 52-wk range is $1.51 – $5.45. The company recently commenced the commerical production of AquAdvantage Salmon at the Company’s farm in my orginal home state of Indiana.
Elsewhere on the recent IPO front, Zoom Video Communications (ZM) flew up by 6.25% closing at $90.45 & Uber Technologies (UBER), the ride-sharing company closed lower at $44.23/share up .52% & still below its recent IPO price of $45 but managed to establish a new all-time intraday high of $47.08 earlier this week . Plant-based burger maker Beyond Meat (BYND) closed at $149.71 adding 1.20%. Their meat is made of four main ingredients: water, pea protein isolate, canola oil & refined coconut oil and is meant to taste like “meat. Slack Technologies (WORK) which jumped into the public markets with their IPO last week flying up 48.5% from their offering price of $26/share closed today at $36.00 off 1.50% on the day. Slack is a provider of a cloud-based workplace messaging app and went public via a direct listing avoiding paying fees to the relevant banks.
The US markets are closed tomorrow, July 4th to observe Independence Day but we will be at it for a full day of trading on July 5th!!!
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