“Hello, Mexico!!!” Vista Partners Daily Market Recap 5/31/19

By John Heerdink LinkedIn

The markets’ crashed today post President Trump’s declared threat of imposing a new 5% tariff became clear. This tariff could possibly go in effect as early as June 10th and did not have anything to do with China. This time it’s in store for our good ol’ friends that live south of the border that we like to call Mexico.  Mexico must now choose to further assist in curbing the flow of undocumented immigrants that are crossing over to the US.  President Trump added that this shiny new tariff could possibly escalate & reach as high as 25% by Oct. 1, 2019 if no real effort is put forward by Mexico.  This news combined with the US-China trade wars where today they shared that it is seeking to draft retaliatory list of “unreliable foreign entities” that harm their interests (sound familiar?) and finally we inverted treasury yield situation and our already fragile “slow growth” market certainly provided the additional fuel to gas up the bear machine and we stayed down the entire today. Treasury yields fell again today 3-month yield is at 2.33%, the 2-yr yield is 1.94 & the 10-year Treasury note closed at 2.14%.

The S&P 500 ended the session down 1.32% at 2752.06. The Dow ended lower by 354.84 points down 1.41% closing at 24,815.04 while the tech-heavy Nasdaq slid 1.51% closing at 7453.15 & the Russell 2000, the small-cap stock market index of the bottom 2,000 stocks,  lost 1.35% and closed at 1465.49.

The US Dollar Index was off .4% at 97.76. 

Oil prices decreased significantly again by 5.2% &  closed at $53.48/bbl. Dow 30 energy participants Chevron (CVX) closed down at $113.85 or 1.33% & Exxon (XOM) closed down at $70.77 dropping 1.67%.

Volatility ruled again today and to the downside of course. The CBOE Volatility Index (VIX)  jumped into the close at $18.71 & up a whopping 8.15%. It traded between $18.01 – $19.72. The 2x leverage ETF TVIX also closed higher too at $25.75 rising 7.79% and trading between $24.89 and $26.39 today.

Dow 30 components & the world’s leading manufacturer of construction & mining equipment Caterpillar (CAT) closed a little lower at $119.81 down 1.67%.

Pharmaceutical giant Merck & Co, Inc. (MRK) declined to $79.21 down .59%.

The tech sector was off for the most part. Intel (INTC) dropped 1.54% closing at $44.04/share. Shares of Microsoft (MSFT) closed lower at $123.68 down by 1.63%.  Apple (AAPL) joined the positive crowd closing at $175.07/share off 1.81%. However, Uber Technologies (UBER), the ride-sharing company closed higher at $40.41 up 1.53% after investors are reacted positively to yesterday’s pass the close 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 for the first time?

Entertainment giant Disney (DIS) closed at $132.04 down .12%. See our latest story on Disney: Will Georgia’s Abortion Law “Force” Disney To Stop Filming In The State?

Home Depot (HD) moved lower off .64% closing at $189.85.

Community Health Systems, Inc. (CYH) one of the largest publicly traded hospital companies in the US hit an intraday high of $32.80/share & a low of $2.63 today and closed the day at $2.66 down 5.34% on 2.3 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 $2.56/share as traded as high as $2.6972. The average daily trading volume is 3.05 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 $19.28/share on 565,240 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. Guggenheim Securities initiated coverage on FATE this week with a Buy rating and a $25/share price target.

Two key economic points came across today as Personal income was reported to have increased .5% in April which is on top of a .1% increase in March. Personal spending also rose .3% on top of the 1.1% increase in March.

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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