“A Mighty Nice Start…” Vista Partners Daily Market Recap 5/28/19

By John Heerdink LinkedIn

It was a mighty nice welcome back today, that is, for the first part of the markets trading session as it was relatively on fire. However, as the day proceeded the markets began to accelerate its losses into the close and fizzle.  The markets overall still seem to be trying to get comfortable with the prospect of a long drawn out US-China trade war as both sides continue to feed anxious headlines to us almost daily.

Today we received word that President Trump believes that there will be some kind of a deal sometime in the future but apparently the US is not ready.  Note that China is still planning on adding more tariffs that could be as much as 25% on $60 billion in US goods by Saturday.  With the markets sell off many continue to push toward “safer” investment as we have seen the appetite for US Treasuries growing while yields move lower. The 2yr yield is now at 2.12% &  the 10yr yield is now down to 2.27%. The US Dollar Index continues to be fairly stable and increased .3% ending at 97.93. 

The S&P 500 ended the session down .84% at 2802.39. The Dow moved lower too by 237.92 points and ended down .93% closing at 25,347.77 while the tech-heavy Nasdaq notched down .39% closing at 7607.32 & the Russell 2000gave back .7%.

Oil prices increased by .8% to close at $59.11/bbl up 1.4%. Dow 30 energy participants Chevron (CVX) closed down at $118.31  or .34% & Exxon (XOM) closed down at $72.61 dropping 2.01%.

Volatility was back today as the earlier results indicated and the CBOE Volatility Index (VIX) popped up 10.41% closing at $17.50 and traded between $15.90 – $17.79. The 2x leverage ETF TVIX also closed higher at $23.81 jumping 5.63% and trading between $21.62 and $23.87 today.

Dow 30 components & the world’s leading manufacturer of construction & mining equipment Caterpillar (CAT) closed lower at $121.59 down 1.07%.

Pharmaceutical giant Merck & Co, Inc. (MRK) closed at $80.26 down 1.12%.

Intel (INTC) moved lower by 2.24% closing at $43.57/share. Shares of Microsoft (MSFT) closed relatively flat at $126.16 down slightly by .06%.  Apple (AAPL) moved lower again closing at $178.23/share down .41%. Uber Technologies (UBER), the ride-sharing company closed lower at $40.95 dropping 1.35%  and still floating significantly below their recent IPO price of $45/share.

Disney (DIS) closed at $132.62 down  .13% even though they had another stellar weekend. Aladdin debuted at number one this weekend with an estimated $112.7 million in box office receipts which apparently places it as the fifth-highest Memorial Day weekend ever. Disney seems to on a roll currently as they just experienced the amazing and ongoing run of Avengers Endgame. Avengers Endgame has now  grossed $803.6 million to date.

Home Depot (HD) shares slid 1.05% closing at $191.55.

Community Health Systems, Inc (CYH) one of the largest publicly traded hospital companies in the US hit an intraday high of $3.20/share & a low of $3.01 today and closed the day at $3.07 down 2.23% on 1.00 million shares of trading.

The Seattle-based biotech firm developing novel therapeutics and delivery methods to treat breast cancer and other breast conditions Atossa Genetics (ATOS) closed at $2.69/share as traded as high as $2.89. The average daily trading volume is 3.2 million shares per day.  The Maxim’s Group’s biotech analyst, Jason McCarthy, Ph.D., reiterated his ATOS buy rating recently 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 Fate Therapeutics (NASDAQ: FATE) which is dedicated to the development of programmed cellular immunotherapies for cancer and immune disorders jumped 6.75% closing at $20.25/share on 1.49 million shares of trading after establishing a new all-time intraday high of $20.55. The 52-week range is $8.64 – $20.55.

We received the Conference Board’s Consumer Confidence Index today and it increased to 134.1 in May so it would seem that overall many are not concerned.

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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