“Inverted Waters” Vista Partners Daily Market Recap 5/30/19

By John Heerdink LinkedIn

The markets’ waters remained a bit rough again today but they ended up for the most part as we glided into the close,  except for the Russell 2000 which lost .3% and closed at 1485.53. The S&P 500 ended the session up .21% at 2788.86. The Dow ended higher by 43.47 points and ended up .17% closing at 25,169.88 & the tech-heavy Nasdaq rose .27% closing at 7567.72.

Treasury yields remained to be a dark cloud as an inverted portion of the yield curve persisted but overall yields fell today. The 3-month yield is at 2.378% & the 10-year Treasury note closed at 2.222%.

We also received multiple reports and additional rhetoric out of the US-China trade wars camp & we are to believe that they will not end any time soon. In a Reuters article, a senior Chinese diplomat apparently stated that the trade dispute is “naked economic terrorism.” Also, Chinese Vice Foreign Minister Zhang Hanhui was reported to have said that China opposed the use of “big sticks” like trade sanctions, tariffs, and protectionism. “We oppose a trade war but are not afraid of a trade war. This kind of deliberately provoking trade disputes is naked economic terrorism, economic chauvinism, economic bullying,” Zhang added.

The S&P 500 ended the session up .21% at 2788.86. The Dow ended higher by 43.47 points and ended up .17% closing at 25,169.88 & the tech-heavy Nasdaq rose .27% closing at 7567.72.

The US Dollar Index stayed steady at 98.15. 

Oil prices decreased significantly by 4.1% &  closed at $56.40/bbl. Hopefully, this will show up at the pump soon as we are approaching $5/gallon in California. Dow 30 energy participants Chevron (CVX) closed down at $115.38 or 1.19% & Exxon (XOM) closed down at $71.97 dropping .26%.

Volatility remained a common theme. The CBOE Volatility Index (VIX)  closed down at $17.30 minus 3.35%. It traded between $16.72 – $18.11. The 2x leverage ETF TVIX also closed lower at $23.89 dropping 3.20% and trading between $23.20 and $24.85 today.

Dow 30 components & the world’s leading manufacturer of construction & mining equipment Caterpillar (CAT) closed a little higher at $121.84 up .30%.

Pharmaceutical giant Merck & Co, Inc. (MRK) closed at $79.68 rising .4%.

Intel (INTC) had another good day moving up 1.13% closing at $44.73/share. Shares of Microsoft (MSFT) closed higher at $125.73 up by .63%.  Apple (AAPL) joined the positive crowd closing at $178.30/share up .52%. Uber Technologies (UBER), the ride-sharing company closed lower at $39.80 dropping another .35%. However, post the close, investors are reacting positively to Ubers earnings report that confirmed that it did not lose as much as expected and their bookings are seeing double-digit increases. Could we see the Uber’s stock head north of its recent IPO price of $45/share?

Entertainment giant Disney (DIS) closed at $132.20 up .48%. See our latest story on Disney: Will Georgia’s Abortion Law “Force” Disney To Stop Filming In The State?

Home Depot (HD) moved higher .57% closing at $191.08.

Community Health Systems, Inc (CYH) one of the largest publicly traded hospital companies in the US hit an intraday high of $3.03/share & a low of $2.73 today and closed the day at $2.81 down 4.10% on 2.17 million shares of trading. More insider buying occurred recently as Michael Dinkins bought shares at $3.168/share on 5/28/19 according to the latest Form 4 filed at SEC.gov. Michael Dinkins has served on our Board of Directors since December 2017. Mr. Dinkins has served as president and chief executive officer of Dinkins Financial, a consulting firm that helps small businesses gain access to capital, since October 2017. See our story more details: INSIDER BUYING ALERT: Community Health Systems, Inc. (CYH) Director Michael Dinkins

The Seattle-based biotech firm developing novel therapeutics and delivery methods to treat breast cancer and other breast conditions Atossa Genetics (ATOS) closed at $2.63/share as traded as high as $2.65. The average daily trading volume is 3.10 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 closed at $19.94/share on 544,218 shares of trading after establishing a new all-time intraday high this week of $20.65. The 52-week range is $8.64 – $20.65.

The US economy grew at a 3.1% annualized rate in the first 3-mos. of 2019, which was higher than the 3% expected.

The international trade deficit was up from the $71.9 billion figure realized in March to $72.1 billion in April.

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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