“Extending Dates, Extending Gains” – Vista Partners Daily Market Recap 2/25/2019
US stocks rose on Monday, and although stocks pared gains later in the session, they still managed to end the day up. The S&P 500 increased 0.12% (3.44 points) while the Nasdaq climbed 0.36% by the time the market closed. The Dow finished the day with gains of 0.23% (60.14 points). A majority of the individual components of the Dow also closed out the session with gains. DowDuPont (DWDP) led the way with an increase of 2.02%, and industrial giant Caterpillar (CAT) followed closely with 1.97%. Of the companies seeing losses, Disney (DIS) was the foremost with a decline of 1.44%. Atossa Genetics (ATOS) bumped up 0.65% on the day. First Majestic Silver continued its move higher this year closing at $6.92/share up +5.17% as it released results from its 2018 exploration program at the Ermitaño Silver/Gold project located four kilometres south of the producing Santa Elena Silver/Gold Mine in Sonora, Mexico. GE also surged higher closing at $10.82 after reaching a new 52-week high of $11.75 as it announced a definitive agreement to sell its BioPharma business to Danaher Corporation (DHR) (“Danaher”) for a total consideration of $21.4 billion, including $21 billion in cash as well as Danaher’s assumption of certain pension liabilities. GE expects to use the proceeds from the transaction to reduce leverage and strengthen its balance sheet. The transaction is expected to close in the fourth quarter of 2019, subject to regulatory approvals and customary closing conditions. According to Kit Juckes with the Societe Generale, “Risk is starting the week in ‘on’ mode.” This is due in large part to President Trump’s Sunday tweet announcing that he would be pushing back the deadline for the trade negotiations with China because of the “substantial progress” that has been made. Sonny Perdue, the U.S. Agriculture Secretary, provided some evidence of this progress by revealing that the talks have led to a plan where China will be buying 10 million additional metric tons of U.S. soybeans. Trump also tweeted, “Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement. A very good weekend for U.S. and China!” 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. Stay Informed! Stay Competitive! Sign Up to receive FREE email updates here!