All markets rose today except the tech-heavy Nasdaq which closed at 8,084.16 down 1.23% or 18.76 points. Apple (AAPL) did its part to help out as it rose 1.18% ($216/70/share) today after announcing their new iPhone 11 Pro, iPhone 11, Apple Watch Series 5, iPad and that their new streaming offering will be available on Nov. 1, 2019, for $4.99 at their annual Apple event. Apple’s CEO Tim Cook called the Pro models “the most powerful and most advanced iPhones we have ever built, with a stunning design.” Unfortunately, Apple’s announcement seemingly caused a number of related stocks to decline i.e Roku (ROKU), Netflix (NFLX) and Disney (DIS) which assisted in pulling down the markets as Apple undercut their pricing. However, the Russell 2000, the small-cap stock market index representing the bottom 2,000 stocks in the Russell 3000 Index, rose another 1.23% at 1,542.99 up 18.76 points. The S&P 500 slightly gained .96 points or ..03% to end the session at 2,979.39 & the Dow gained 73.92 points closing at 26,909.43 up .28% and a getting very close to the 27k level.
Reports surfaced today that China is contemplating a deal where they would purchase additional American agricultural goods before the upcoming U.S. – Chinese trade meetings which seemed to lift spirits that a deal might surface but I believe that this will not come anytime soon.
President Trump fired John Bolton as national security adviser who was recognized as an “Itan Hawk”. Oil jumped subsequently fell to $57.40/bbl down .78%. The downward move came about post-OPEC long with allies would proceed in cutting production levels to assist in balancing global oil markets. Chevron (CVX) moved higher by .96% closing at $119.39/share & Exxon (XOM) closed higher by .79% closing at $71.49/share. Occidental Petroleum (OXY) closed at $44.97/share up .67% after its recent sale of $13 billion of debt to fund their Anadarko Purchase.
Treasury yields moved much higher today. The 2-yr Treasury yield closed at 1.66% up .09 & the 10-yr yield finished higher at 1.66% up .08. The U.S. Dollar Index closed at 98.38 up .1% on the day.
On Monday we received the Consumer credit report which showed a move higher by $23.3B in July which is the largest expansion move since July 2018. Will the consumer be able to repay? Will they not? Know one really knows but one thing is certain if that credit is flowing which means buying in the near term
On Tuesday, we received the NFIB Small Business Optimism Index report for August which moved lower to 103.1 and down from July’s reading of 104.7. We also received the July Job Openings & Labor Turnover Survey which confirmed that job openings went down to 7.217M.
Volatility bets moved slightly lower today. The CBOE Volatility Index (VIX) closed at $15.20 share down .46% or $.07/share. The 2x leveraged ETF TVIX closed at $14.73/share down .34% or $.05/share and traded tightly between $14.64 and $15.51 today.
Metals & Mining
Gold prices closed sharply down today at $1485.30/oz. Silver closed down slightly as well at $18.17/oz. Hecla Mining Company (HL) closed at $1.93/share up sharply by 10.29%. First Majestic Silver closed higher at $9.77/share up .41%.
The S&P 500 healthcare sector closed at 1047.12 up ..29%. UnitedHealth (UNH) closed up .77% closing at $232.46/share, Walgreens Boots Alliance (WBA) closed at $56.88/share up 2.32% & Cigna (CI) gained 1.75% closing at $164.99/share post their recent Q2 earnings beat.
INVO Bioscience, Inc. (IVOB) ended the day at $.30/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, 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.
Recently, INVO Bioscience (IVOB) announced that revenues for the 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. Read Complete Story.
The Ishares Nasdaq Biotechnology ETF (IBB) moved lower up 1.13% to close at $102.98.
Atossa Genetics (ATOS), a Seattle-based biotech firm developing novel therapeutics and delivery methods to treat breast cancer and other breast conditions closed at $2.105/share up 2.18% after hitting a high of $2.133 today. The average daily trading volume is 408,890 shares per day and reported Q2 financial results & company update today. Yesterday Atossa announced that all participant activities have been completed in its Phase 1 clinical trial of a new proprietary modified-release oral tablet form of its Endoxifen. This is the next generation of oral Endoxifen following the successful clinical studies of the capsule form of the company’s oral Endoxifen. Steven C. Quay, Ph.D., M.D., CEO, and president of Atossa, commented: “We are very pleased that this study enrolled so quickly, with all 24 participants enrolled and dosed over the past six weeks. This is a very important study for Atossa as we plan to use the new modified-release oral tablet in our upcoming Phase 2 study to reduce breast density. We expect to report preliminary results from the Phase 1 study in the next 30 days and then move forward with the Phase 2 study in the fourth quarter. Ultimately, the goal of the modified-release aspect of the drug is to create more even uptake of the drug which we believe may reduce side effects and improve efficacy.” The Phase 1 study is being conducted in Australia. The objectives of the study are to assess safety and tolerability and to ascertain the pharmacokinetics of the tablet. The study is randomized, double-blinded and placebo-controlled with both single and multiple-doses (daily for 14-days) in two groups with a total of 24 healthy female volunteers. Atossa’s oral Endoxifen capsule served as the comparator.
Atossa presented today at the Rodman & Renshaw Conference in NYC this coming week and published their updated presentation that included their near term milestones on page 23. It includes a milestone regarding their Oral Endoxifen Phase 1 trial where they expect to reveal their “results from Phase 1 study of the new modified-release tablet” this month.
Stoke Therapeutics, Inc. (Nasdaq: STOK), a biotechnology company that is pioneering a new way to treat the underlying cause of genetic diseases by precisely upregulating protein expression, announced recently that the enrollment of the first patient in an observational study of children and adolescents ages 2 to 18 with Dravet syndrome. Dravet syndrome is a severe and progressive genetic epilepsy characterized by frequent, prolonged and refractory seizures, beginning within the first year of life. The effects of the disease go beyond seizures and often include cognitive regression or developmental stagnation, ataxia, speech impairment, and sleep disturbances. STOK shares closed at $28.80/share down sharply by 13.98% on 283,930 shares of trading. Nothing was announced.
Consumer Staples and Discretionary
Walmart (WMT) closed at $116.05/share down .24% after their recent earnings beat and positive guidance.
Disney (DIS) closed at $135.79 down 2.19%.
The Home Depot (HD) closed at $233.00/share up .06%.
McDonald’s (MCD) closed at $209.68/sharedown 3.49%.
Target (TGT) closed at $108.83/share up .82%.
Boeing (BA) closed at $369.49/share up a solid 2.99%. Boeing recently announced a deal with China Airlines for 6 777 Freighters.
S&P 500 Financials sector closed up .4%.
JPMorgan Chase & Co. (JPM) closed at $116.87/share up 1.27%.
Goldman Sachs (GS) closed at $215.63/share up 1.72%.
Visa (V) closed at $176.35/share down 2.86%.
S&P 500 Technology Hardware & Equipment sector closed at $1288.36/share up 1.03%
Apple (AAPL) closed at $216.70/share up 1.18%.
Cisco Systems, Inc. (CSCO) closed at $49.21/share up 1.30%
IBM (IBM) closed at $145.05/share up 1.72%.
Microsoft (MSFT) closed at $136.08/share down 1.05%.
Facebook (FB) closed at $186.17/share down 1.37%.
Amazon (AMZN) closed at $1,820.55/share down .59%.
Netflix (NFLX) closed $287.99/share down 2.16%.
Google (Alphabet, Inc.) (GOOG) closed at $1,206.00/share up .13%.
Dow Inc. (DOW) closed at 46.32/share up 4.2%.
Day or Short Term Trading Update
Our recent buy of Bloom Energy ( BE) at $5.06/share and $4.99/share paid off as it surged to $5.70 about a 14% move. We were seeking a swing back up to at least the high $5’s after its recent beat down and we got it.
We identified San Jose, CA’s Zscaler (ZS), a cloud-based web security provider, as a bounce play after it got slammed earlier this week after being downgraded and closed down at $70.80. ZS popped then to $74.51/share for an approximate 5% gain.
The Hain Celestial Group, a leading organic and natural products company with operations in North America, Europe, Asia & the Middle East, was also identified as another bounce play. HAIN shares closed trading at $18.36/share Wednesday (Aug. 21st) after a recent analyst downgrade and a simultaneous price drop from the $22 level that seemed to be triggered by fears surrounding The Brexit issue and timeline. Thursday, Aug 22nd, HAIN shares rose to an intraday high of $18.99 and then closed at $18.91 for 3% move.
On Aug. 28th The Hain Celestial Group (HAIN) announced the completion of the divestiture of its Tilda to Ebro Foods for $342 million in cash. We reentered HAIN stock at $18.30/share and it moved to an intraday high of $18.66 prior to closing at $18.36/share up .99%. HAIN is due to report Q4 and fiscal year 2019 earnings tomorrow at 8:30 am eastern. Today HAIN hit an intraday high of $19.69/share and closed at $19.03 up 3.65%. This was another successful exit.
Thursday, Aug. 29th we also entered into Acasti Pharma Inc. (ACST) at $1.81/share for a momentum trade and targeting minimal price target of $2/share and then added additional shares at $1.79. ACST is a biopharmaceutical innovator focused on its prescription drug candidate CaPre for the treatment of severe hypertriglyceridemia (HTG). ACST shares closed today’s trading at $1.99/share up 10.56% after hitting an intraday high of $2.03 on trading volume of 2.04M shares. B. Riley initiated coverage with a BUY Recommendation and a Price Target of $7.75/share earlier this week. We locked in our quick trade at $2/share today for ~11.5% gain. We will look to reenter ACST if we see a significant pullback.
Added more Atossa Genetics (ATOS) today up to $2.12/share scaling the position that we started at $1.97/share. Atossa presented at the Rodman & Renshaw Conference in NYC today and used their updated presentation that included their near term milestones on page 23. It includes a milestone regarding their Oral Endoxifen Phase 1 trial where they expect to reveal their “results from the Phase 1 study of the new modified-release tablet” this month. The stock has traditionally moved well around these events.
Our recent addition of Clearside Biomedical (CLSD) that we initiated at $.67/share closed trading at $.735/share up 8.87% on the day but we are looking for more with this one.
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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