“Heavy Friday” Vista Partners Daily Market Recap 10/18/19

By John Heerdink LinkedIn

The market traded in the red today as a few issues were feeling a bit heavy. Johnson & Johnson (JNJ) with the headlines swirling about their baby powder which was apparently found to have traces of asbestos, Boeing (BA) with a report that surfaced suggesting that they may have misled the FAA about the troubled Max’s safety system, American Express (AXP) which sold off even though they beat Wall Street’s expectations while China’s GDP grew at its slowest pace since 1992 at just 6% in the 3-months ending in September. Positive headlines from Coca Cola (KO) beat earnings expectations citing that Coca-Coal Zero Sugar was a major force in driving their positive results.

A the end of the day the S&P 500 ended today’s session down by 11.7 points or .39% as it closed at 2,986.20 just. The Dow lost 255.68 points closing at 26,770.20 down by .95%. The tech-heavy Nasdaq Composite closed above the 8k mark closing at 8,089.54 down .83% or 367.31 points. The Russell 2000, the small-cap stock market index representing the bottom 2,000 stocks in the Russell 3000 Index moved lower by 6.36 points down .41% and it ended trading at 1,535.48.

Treasury yields moved lower today.  The 2-yr Treasury yield closed at 1.57% down by .04% & the 10-yr yield finished higher at 1.75% down by .01%.

The U.S. Dollar Index weakened closing at 97.27 down .4%.

Oil ended down .2% closing at $53.76/bbl. Chevron (CVX) closed at $114.74/share up .53%, Exxon (XOM) closed at $67.61/share down by .78%. Occidental Petroleum (OXY) closed at $40.45/share down .30%.

Gold prices closed at $1,494.24/oz. Silver closed at $17.63/oz. Hecla Mining Company (HL) closed at $1.99/share down .50% after last Monday’s report that confirmed a 30% increase in Q3 silver production of 3.3 million ounces and gold production of 77,331 ounces & cash and cash equivalents of ~$33M an $24M increase over June 30th, 2019 with outstanding debt coming in slightly lower. First Majestic Silver (AG) closed higher at $10.24/share down 1.25% after this week’s confirmation that they had record consolidated average silver recoveries of 88%, the highest in the Company’s 17-year history in Q3.

Volatility bets results were mixed again today.  The CBOE Volatility Index (VIX) closed at $14.25/share up 3.34% or $.46/share. The 2x leveraged ETF TVIX  closed at $10.69/share down .74% or $.08/share and traded between $10.52 and $11.20 today.

Economic Reports

No economic data was received on Monday. On Tuesday, we received the Empire State Manufacturing Survey for October, which moved higher ending at 4. On Wednesday, the total retail sales report was confirmed to have dropped .3% m/m in September while excluding autos, retail sales dropped .1%. Total business inventories came in flat m/m in August. Total business sales reported as an increase up .2%. The NAHB Housing Market Index report for October rose to 71 while the weekly MBA Mortgage Applications Index moved higher by .5%. Thursday brought forth the total housing starts report which showed a 9.4% dropped month/month in September to a seasonally adjusted annual rate of 1.256M while building permits declined 2.7% to a seasonally adjusted annual rate of 1.387M. Single-family starts increased .3% to 918k as single-family permits increased .8% to 882k. Initial claims for the week ending October 12 rose by 4k to 214k while continuing claims for the week ending October 5 dropped by 10k to 1.679M. Industrial production went down .4% month/month in September. Total capacity utilization descended to 77.5%. The Philadelphia Fed Index for October landed at 5.6. Friday, produced the Conference Board’s Leading Economic Index (LEI) report which showed a decrease by .1% in September.

Big Movers

Holly Energy Partners (HEP) closed at $23.13 up 8.8% after yesterday’s report where they updated guidance.

Robotic surgical company Intuitive Surgical (ISRG) jumped 6.96% after crushing earnings expectations.

Healthcare

The S&P 500 healthcare sector closed at 1061.63 down .34%. UnitedHealth Group (UNH) closed higher by .69% closing at $245.34/share after a Q3 earnings beat on 10/15/19, Walgreens Boots Alliance (WBA) closed at $55.30/sharedown 1.14% & Cigna (CI) gained 1.28% closing at $166.88/share.

INVO Bioscience, Inc. (IVOB) ended the day at $.2785/share. Daily trading volume continues to rise in concert with their announcing progress after their exclusive U.S. partnership with Ferring Pharmaceuticals, a leader in the reproductive health industry was announced in Q1-2019. Ferring has committed to providing the necessary sales and marketing resources to more fully develop the market in the United States. There are countless couples not able to receive reproductive treatments today, and Ferring can be instrumental in addressing the unmet needs of this cohort. Ferring has the industry experience, relationships and the marketing capabilities to successfully embed the INVOcell in clinics throughout the country.  IVOB is a medical device company, headquartered in Sarasota, FL focused on creating simplified, lower-cost treatment options for patients diagnosed with infertility. The company’s lead product, the INVOcell (pictured below), is a novel medical device used in infertility treatment that is FDA cleared and that enables egg fertilization and early embryo development in the woman’s vaginal cavity.

INVO Bioscience (IVOB) announced on August 2019 that revenues for their most recent quarter totaled $658,638 compared to $110,210 in the second quarter of 2018, an increase of 498%. Revenue growth was driven primarily by increased product sales in the U.S. as shipments to Ferring were above expectations outlined in May 2019 as they began to increase their marketing activities. On January 14, 2019, the Company closed an exclusive U.S. licensing agreement with Ferring International Center S.A. the parent Company of Ferring Pharmaceuticals U.S. to commercialize the INVOcell™ system for use in the treatment of infertility. As part of the U.S. licensing agreement, the Company received a $5 million one-time milestone payment, with the ability to receive an additional $3 million upon obtaining a label enhancement from the U.S. Food and Drug Administration.

INVO Bioscience announced recently that the Company will exhibit at the American Society for Reproductive Medicine (ASRM) 2019 Scientific Congress & Expo on October 12-16, 2019 in Philadelphia, PA at booth #1807 and the 20th World Congress of the International Society for In-Vitro Fertilization (ISIVF) on October 24-26, 2019 in Barcelona, Spain at booth #15. Kathleen Karloff, Chief Executive Officer of INVO Bioscience, commented, “We are pleased to participate in these important international industry events. We are gratified with the growing global acceptance of our INVOcell technology. INVOcell opens the door to pregnancy and the development of families for a large number of couples where more traditional methods have not. We provide hope to those that have exhausted other options, and we do it with a more natural experience and in a more cost-efficient manner. We are proud to have developed an effective treatment that will increasingly occupy a unique position in the fertility treatment industry worldwide.”

On Monday, INVO Bioscience announced the appointment of Steven Shum (pictured above) as the Company’s Chief Executive Officer, effective immediately. Shum succeeds Kathleen Karloff, who is planning to retire after 12+ years with the Company as its CEO. Karloff will remain in an operational role over the near term, will continue to advise, lend guidance and support to the Company, and will remain Chair of the Board of Directors. “I am extremely pleased to be named Chief Executive Officer of INVO Bioscience. I believe the Company is extremely well-positioned to expand the utilization of our proprietary INVOcell technology throughout the world through strategic partnership agreements in key international markets similar to our U.S. agreement. Further, I believe there is an opportunity to expand upon our success with INVOcell through adjacent technologies that can leverage our position in the market as a leader in fertility and women’s health. I thank Katie for creating a tremendous foundation from which to build upon and am excited to lead the Company into the future. I also appreciate her willingness to remain actively involved until her planned retirement”, stated Steve Shum. Read Complete Story.

Biotech

The Ishares Nasdaq Biotechnology ETF (IBB) moved lower by .74% at $102.27 & the NYSE Arca Biotech Index (^BTK) closed at 4,279.59 down .46%.

Johnson & Johnson (JNJ) closed at $127.70  up .74% after getting hit with stories that their baby powder may have had traces of asbestos.

Atossa Genetics (ATOS) closed trading at $1.78/share on this 18th day of October’s Breast Cancer Awareness Month. This week, Atossa and The Dr. Susan Love Research Foundation, announced that the Institutional Review Board (IRB) has approved a Phase 2 clinical study of Atossa’s intraductal microcatheter technology for the administration of fulvestrant in patients with early-stage breast cancer or ductal carcinoma in situ (DCIS). Susan Love, M.D., inventor of the technology, will advise Atossa as it conducts the trial. Atossa also entered into a clinical trial agreement with a major research university named in the 8k filing that Atossa filed on 10-14-2019 to conduct their Phase 2 clinical study of Atossa’s intraductal microcatheter technology for the administration of fulvestrant in patients with early-stage breast cancer or ductal carcinoma in situ (DCIS). Atossa Genetics is the owner of issued patents, pending patent applications, and medical device FDA 510(k) premarket notifications related to the treatment of breast conditions, including breast cancer and DCIS.

“We have contracted with a world-class teaching, research, and healthcare organization based in the United States to conduct this study,” commented Steven C. Quay, Ph.D., M.D., CEO and President of Atossa. “Atossa’s intraductal technology was invented by Dr. Love and subsequently acquired by Atossa. We are honored that Dr. Love has agreed to work with us on this important new study. This work begins as Atossa increases its corporate focus on its proprietary Endoxifen for the reduction of mammographic breast density.” To READ the complete story click here.

Tech & Entertainment

Apple (AAPL) closed at $236.41/share up .48% as optimism continues to grow with regard to the new iPhone models and new streaming entertainment offering, Alphabet (GOOG) closed at $1245.49/share down .6%, Facebook (FB) closed at $1985.85/share down 2.38%, Microsoft (MSFT) closed at $137.41/share down 1.63%, NVIDIA (NVDA) closed at $190.49/sharedown 1.96%. Bank of America/Merrill Lynch recently raised its NVDA price target to $250 from $225. IBM closed at $134.09/share down .13% as it recently missed wall street Q3 expectations while Cisco Systems (CSCO) lost .46% finishing at $46.71/share. Goldman Sachs (GS) recently downgraded CSCO them as it views that corporate spending on technology has weakened. Disney (DIS) closed at $1320.89/share down 1.12% and Netflix (NFLX) closed at $275.30/share cascading 6.15%. Amazon (AMZN) closed at $1,757.51/share down 1.68%. Streaming device maker Roku (ROKU) closed at $129.94/share down 6.57% today. RBC recently issued an upgrade based upon ROKU’s valuation as it had recently declined over the last 30-days and also boosted its target price to $155 up from $107.

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