The markets today were ruled by the news that the US had realized a better than expected jobs report for the month of June. The US economy added 224K new jobs in June which was well above the 161k monthly average in 2019. The June unemployment rate was reported as 3.7% versus 3.6% in May, but still in solid territory. With the markets attention and intention on receiving an interest rate cut at the end of July, this relatively positive economic report seems to indicate that the FOMC will most likely not cut interest rates by a half a point but may still go ahead a cut by a quarter-point. The markets, in turn, sold off initially as it had anticipated a negative report, but it did work its way back, however, overall the markets remained down on the day except for the Russell 2000, the small-cap stock market index representing the bottom 2,000 stocks in the Russell 3000 Index which added a modest 3.50 points closing at 1,57562 ending up .22%. The S&P 500 ticked down 5.41 points and closed at 2,990.41 down .18% on the day. The Dow lost 43.88 points closing down .16% ending at the high of the day of 26, 922.12. The tech-heavy Nasdaq closed at 8,161.79 down .10% off 8.44 points.The volatility trading range widened today while volatility bets continued their rose. The CBOE Volatility Index (VIX) closed higher at $13.28 up by a healthy 5.65% or $.71/share. It traded between $12.04- $14.47. The 2x leveraged ETF TVIX also closed higher at $15.58 up .58% and traded between $15.47 and $16.92 today. The US Dollar Index gained again today ending the day at 97.27 up 1.2% for the week.
Big tech stocks were mixed for the most part today. Amazon (AMZN) gained .20% closing at 1,942.91, Alphabet (GOOG) moved higher by .89% closing at $1,131.59, Apple (AAPL) was down .09% closing at $204.23, Facebook (FB) finished lower too at $196.40 down .41%. Shares of Microsoft (MSFT) lost .29% closing at $137.06. Chipmaker Intel (INTC) ended down .91% closing at $48.08/share & Micron (MU) shaved another .43% closing at $39.42 after its recent charge higher post beating earinings estimates.
Institutional alternative asset manager Och-Ziff Capital Management Group (OZM) closed at $24.31 up 1.63% bear is newly minted 52-wk high of $24.36 from earlier this week. The 52-wk range is $8.60 – $24.36. OZM sports a 4.26% cash dividend. Los Angeles-based Colony Capital (CLNY) a leading global investment management firm with assets under management of $43 billion closed at $5.13 up ..98%. CLNY pays an 8.71% cash dividend.
Nike (NKE) closed at $86.82 moving up a respectable .72%. Nike recently missed analyst earnings estimates but maintained full-year guidance.
The health care sector moved lower today. The S&P 500 healthcare sector closed at 1085.09 off .73%. Community Health Systems, Inc. (CYH) one of the largest publicly traded hospital companies in the US hit and closed at an intraday high of $2.83/share & also traded at low of $2.66 today on 846,152 shares of trading. On June 27th CYH announced that its subsidiaries signed a definitive agreement to sell 92-bed Bluefield Regional Medical Center in Bluefield, West Virginia, and its associated ancillary healthcare operations to subsidiaries of Princeton Community Hospital. The hospital included in this transaction is among the additional planned divestitures discussed on the Company’s Q1 2019 earnings call. Also, note there has been 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 Ishares Nasdaq Biotechnology ETF (IBB) dropped 1.54% closing at $109.22. This sector has been on a more than healthy run over the last 30 days. The 52-wk range is $89.01 – 122.97. AquaBounty Technologies, Inc. (AQB), a biotechnology company focused on enhancing productivity in the aquaculture market closed July 3rd’s trading at $3.48/share up a strong $.40/share or 12.99% but managed to swing trade and give back $.41/share dropping 11.78% and closed at $3.07. The 52-wk range is $1.51 – $5.45. The company recently commenced the commerical production of AquAdvantage Salmon at the Company’s farm in my orginal home state of Indiana.
Elsewhere on the recent IPO front, Zoom Video Communications (ZM) mpved up by 1.58% closing at $91.88 & Uber Technologies (UBER), the ride-sharing company closed lower at $43.53/share down 1.58% & still below its recent IPO price of $45 but managed to establish a new all-time intraday high of $47.08 earlier this week. Plant-based burger maker Beyond Meat (BYND) closed at $152.63 adding .75%. Their meat is made of four main ingredients: water, pea protein isolate, canola oil & refined coconut oil and is meant to taste like “meat. Slack Technologies (WORK) which jumped into the public markets with their IPO last week flying up 48.5% from their offering price of $26/share closed today at $35.52 off 1.33% on the day. Slack is a provider of a cloud-based workplace messaging app and went public via a direct listing avoiding paying fees to the relevant banks.
The US markets are back to normal next week Monday through Friday. We will be receiving the FOMC meeting minutes on Wednesday & then the inflation report on Thursday.
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. Stay Informed! Stay Competitive! Sign Up to receive FREE email updates here!