“Easy Peasy” Vista Partners Daily Market Recap 5/21/19

By John Heerdink LinkedIn

Yes, it was a bit more “easy peasy lemon squeezy” today in the markets today folks as the technology sector/the “US-China trade war” headlines that dragged us down again yesterday managed to loosen their stranglehold. Out of the starting blocks today, the markets were met with the overnight news that the US was now easing restrictions for 90 days on Huawei, the giant Chinese technology concern and vendor of networking gear and smartphones that would allow for limited business activity or a temporary license that will enable suppliers of chips and components  to keep selling parts to Huawei through Aug. 20, 2019. As reported, U.S. Commerce Secretary Wilbur Ross stated, “the appropriate long term measures for Americans and foreign telecommunications providers that currently rely on Huawei equipment for critical services.” The market seemed to like this and proceeded to rise throughout the day and risk investments seemed to be back vogue. It is amazing what a new day can bring forth… both good and bad. What will we wake up to tomorrow?

We also received the US existing home sales report that showed a decrease of .4% month over month in April resulting in a seasonally adjusted annual rate of 5.19M but lower than estimates.

As a result, the S&P 500 moved nicely higher ending the session down .85% at 2864.36. The Dow moved higher too bouncing up 197.43 points and ended up .77% closing at 25,877.33 while the tech-heavy Nasdaq chipped in a solid 1.08% closing at 7785.70 but the Russell 2000 won the day as it jumped 1.3% essentially ending where it started on Monday.

With fear easing in the markets today, the CBOE Volatility Index (VIX) closed sharply down at $14.95 or 8.34% and traded between $14.79 – $16.22. The 2x leverage ETF TVIX also closed down significantly at $21.43 dropping 9% and trading between $21.30 and $22.24 today.

Oil prices fell .4% closing at $63.07/bbl. Chevron (CVX) moved higher .41% ending the day at $121.34. Exxon (XOM) closed higher at $76.25 up .46%.

Dow 30 components Caterpillar (CAT) also found ground today closing at $124.95 up 2 .06% and pharmaceutical giant Merck & Co, Inc. (MRK) bumped up .79% closing at $79.50.

As for as other chip makers & tech concerns, Intel (INTC) had a very good day and ended up  2.07% closing at $44.46/share. Shares of Microsoft (MSFT) was up .54% closing at $126.90.  Apple (AAPL) was back to its winning ways closing at $186.60/share up 1.92%. Uber Technologies (UBER), the ride-sharing company who priced its IPO at $45 per share last week and raised a whopping $8.1 billion lost again today down .22% as it closed at $41.50 and continues its struggle to find a solid road in the public markets.

Disney (DIS) also notched a small win closing at $134.09 up .13%.  Home Depot (HD) reported Q1 today and beat analyst earnings estimates & issued the upside of their full-year revenue guidance for 2019. HD shares closed at $191.45 up .3%.

One of the largest publicly traded hospital companies in the US and a leading operator of acute care hospitals in communities across the country, Community Health Systems, Inc (CYH) hit an intraday high of $3.40/share & a low of $3.27 today and closed the day at $3.37 up nicely again 2.74% on 2.06 million shares of trading.  Chairman & CEO Wayne T. Smith bought more CYH stock recently bringing his total purchases to a number north of $3mm.  See SEC form 4 filing. More Insider Buying purchases came from CYH director Ely S. James as a  Form 4 today reveals a 50,000 CYH share purchase at $3.25/share on Friday, May 17th, 2019 and another 50,000 CYH share purchase at 3.15/share Monday, May 20th, 2019 for a total investment of $320,000.  It is worth noting that CYH Management is continuing to push forward with their strategy to delever their balance sheet & sell off underperforming hospitals assets in order to improve cash flow. They seem to be making progress in these efforts, although early, evidenced by their recently published financial and operating results for the three months ended March 31, 2019.

The Seattle-based biotech firm developing novel therapeutics and delivery methods to treat breast cancer and other breast conditions Atossa Genetics (ATOS) had a great day as it saw its shares move higher and hit an intraday high of  $2.8275 before increasing 7.06% today and closing at $2.73 per share. Last week Atossa offered the following Q1 2019 Corporate Developments & Q1 2019 Financial Results. See Complete Story. The Maxim’s Group’s biotech analyst, Jason McCarthy, Ph.D., reiterated his ATOS buy rating yesterday with a $9/share 12-Month Target Price. See his update report which is called “Reports the Quarter, Endoxifen Programs Progressing, Data Updates Expected Over 2019.”

San Diego-based biotech dedicated to the development of programmed cellular immunotherapies for cancer and immune disorders, Fate Therapeutics (NASDAQ: FATE) jumped 3.96% closing at $19.17/share which was the day’s high. Recently FATE established a new all-time intraday high of $20. The 52-week range is $8.64 – $20.

INVO Bioscience, Inc. (IVOB) ended the day up for the third straight day up 3.76% with a trading volume of 201,681 shares as interest continues to increase. IVOB is a medical device company, headquartered in Medford, Massachusetts, focused on creating simplified, lower cost treatment options for patients diagnosed with infertility. The company’s lead product, the INVOcell, is a novel medical device used in infertility treatment that enables egg fertilization and early embryo development in the woman’s vaginal cavity. IVOB reported progress yesterday after the markets close as it released its Q1 2019 numbers including revenues for Q1 2019 increasing by 82% and gave us a look into the progress expected in Q2 2019. Katie Karloff, Chair and Chief Executive Officer of INVO Bioscience, commented, “We expect 2019 to be a pivotal year in the history of INVO Bioscience.”

The US Dollar Index stayed solid and moved higher by .1% closing at 98.05.

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

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