“Looking Probably Ahead” Vista Partners Daily Market Recap 10/28/19

By John Heerdink LinkedIn

The markets today seemed to be reacting to a number of actions at the macro level that once again buoyed the markets into positive and record territory. Today, according to a Reuters article,  one of those factors played a hand we heard from President Trump regarding the US_-China trade wars who stated, “We are looking probably to be ahead of schedule to sign a very big portion of the China deal, we’ll call it Phase One but it’s a very big portion.” One of the world’s other uncertainties that were pushed forward today was the Brexit deadline has now been extended until January 31, 2020. The British pound advanced against the US dollar. The U.S. Dollar Index weakened overall by .1% today closing at 97.74.

The S&P 500 ended today’s session setting a new record high up by 16.87 points or +.56% as it closed further above the 3k level again at 3,039.42. The Dow gained 132.66 points closing comfortably above the 27k mark at 27,090.72 +.49%. The tech-heavy Nasdaq Composite closed significantly above 8k mark again closing at 8,325.99 +1.01% or +82.87 points. The Russell 2000, the small-cap stock market index representing the bottom 2,000 stocks in the Russell 3000 Index moved higher by 13.22 points +.85% and it ended trading at 1,571.93.

Treasury yields ended up today.  The 2-yr Treasury yield closed at 1.65% & the 10-yr yield finished higher at 1.85%.

Oil moved .9% lower day closing at $55.95/bbl retreating from its recent run. Chevron (CVX) closed at $118.48/share -.16%, Exxon (XOM) closed at $68.64/share -.88%. Occidental Petroleum (OXY) closed at $42.28/share -.59%.

Gold prices closed back over the 1.5k mark at $1,505.45/oz. Silver closed at $18.11/oz. Hecla Mining Company (HL) closed at $2.11/share +.48% after a recent 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 $10.31/share -4.09% after a recent 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 swung sharply higher again today.  The CBOE Volatility Index (VIX) closed at $13.11/share +3.64% or +$.46/share. The 2x leveraged ETF TVIX  closed at $9.41/share+1.4% or +$.13/share and traded between $9.10 and $9.51 today.

Economic Reports

Monday supplied ups with the Adv. International Trade in Goods report for September which confirmed a deficit of $70.4 B. An advance report for retail inventories showed a 0.3% increase, versus a 0.2% decline in August, while the advance report for wholesale inventories showed a 0.3% decline, versus an unchanged reading for August.

Big Movers

Progyny (NASDAQ: PGNY) announced Thursday after the close the pricing of its initial public offering of 10,000,000 shares of its common stock at a price to the public of $13.00 per share. Progyny is offering 6,700,000 shares and the selling stockholders are offering 3,300,000 shares. In addition, certain selling stockholders have granted the underwriters a 30-day option to purchase up to an additional 1,500,000 shares of common stock at the initial public offering price less the underwriting discount. Progyny’s shares began trading on the Nasdaq Global Select Market under the ticker symbol “PGNY” on October 25, 2019, and the offering is expected to close on October 29, 2019, subject to customary closing conditions. J.P. Morgan, Goldman Sachs & Co. LLC and BofA Securities are acting as joint lead book-running managers for the offering. Citigroup is acting as book-running manager for the offering. Piper Jaffray, SVB Leerink and TPG Capital BD, LLC are acting as co-managers for the offering.

Progyny, Inc. (PGNY) is a leading benefits management company specializing in fertility and family building benefits solutions in the United States. Their vision is to ensure anyone can have a child when they want. That’s why they take a smarter approach to fertility and family building benefit solutions. By bringing together the most cutting-edge science and the largest high-quality network of fertility specialists in the nation, they seek to deliver superior clinical outcomes and shorten the path to pregnancy. They seek to empower more people to achieve their dreams of parenthood by bringing new life to fertility and family building benefits.

PGNY closed trading at $15.94/share on Friday up 22.62% and then legged to a high of $18.15/share today prior to closing at $17.21/share up 7.97% at the close of trading.

Healthcare

The S&P 500 healthcare sector closed at 1076,07 +1.04%. UnitedHealth Group (UNH) closed at $247.05/share +.87 after a recent Q3 earnings beat on 10/15/19, Walgreens Boots Alliance (WBA) closed at $55.80/share +.69%, Walgreens reported earnings on 10/28/2019 of $1.43/share, missing estimates calling for $1.451 per share & Cigna (CI) gained 1.92% closing at $174.79/share.

1 in 8 couples need fertility treatment Retrieved January 19, 2017, from http://www.cdc.gov/nchs/fastats/infertility.htm

INVO Bioscience, Inc. (IVOB) is a medical device company focused on creating alternative treatments for patients diagnosed with infertility and developers of INVOcell®, the world’s only in vivo Intravaginal Culture System. IVOB announced this week the receipt of a CE Mark for its INVOcell culture and retention device. The receipt of the CE Mark is the final requirement for INVO Bioscience to begin commercially distributing the revolutionary alternative to traditional IVF through the entire European Union. “We are extremely pleased to receive this very important product certification, the CE Mark, which permits us to commercially distribute the world’s only in vivo fertilization treatment to the millions of patients throughout the countries of the EU. The European countries represent a large potential market for INVOcell, with an estimated $3 to $4 billion currently spent on IVF treatments. Importantly, INVOcell is a simple and more natural solution with the potential to expand the overall addressable market for treatment due to its ability to lower costs compared to IVF while also demonstrating comparable rates of effectiveness. We are currently in the middle of active discussions with several distribution partners around the world, including within the European market, and look forward to providing updates on our international efforts in the near future,” stated Steve Shum, CEO of INVO Bioscience. Read the complete story by clicking here.

To learn more about INVO Bioscience (IVOB) and to track its progress daily, please the INVO Bioscience Dedicated Company Page by clicking here.

IVOB closed trading at $.29/share on Friday. The 52-wk range is $.25 – $.63.

Biotech

The Ishares Nasdaq Biotechnology ETF (IBB) moved higher +1.34% at $107 & the NYSE Arca Biotech Index (^BTK) closed at 4,473.46 +1.83.

Johnson & Johnson (JNJ) closed at $129.18/share +.65%, Merck & Co (MRK) closed at $82.20/share -.07%, Pfizer (PFE) closed at $37.28/share +1.39%

Atossa Genetics (ATOS) closed trading at $1.72/share on this 28th day of October’s Breast Cancer Awareness Month. Recently, 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.” READ the complete story here.

This week Kyle Guse, CFO and General Counsel of Atossa Genetics will be a featured presenter at the 5th Annual Dawson James Small Cap Growth Conference on October 29, 2019, at 11:20 AM Eastern Time. The conference is being held at the Wyndham Grand Hotel in Jupiter, Florida.

Tech & Entertainment

Apple (AAPL) closed at $249.05/share +1% as optimism continues to grow with regard to the new iPhone models and new streaming entertainment offering, Alphabet (GOOG) closed at $1290/share +1.97%, Facebook (FB) closed at $189.40/share +.80% as news of its antitrust probe now includes 47 attorney generals surfaced recently, Microsoft (MSFT) closed at $144.19/share +2.46%, NVIDIA (NVDA) closed at $206.79/share +1.10%. Bank of America/Merrill Lynch recently raised its NVDA price target to $250 from $225. IBM closed at $135.97/share +.39% as it recently missed wall street Q3 expectations while Cisco Systems (CSCO) gained +.58% finishing at $47.17/share. Goldman Sachs (GS) recently downgraded CSCO as it views that corporate spending on technology has weakened. Disney (DIS) closed at $130.53/share -.28% as it recently announced that it was teaming with Verizon (VZ) ($60.18 -.31%) and its new streaming service Disney+ will now be given to all new customers of Verizon for a year, and Netflix (NFLX) closed at $271.50/share +.08%. Amazon (AMZN) closed at $1,780.78/share +1.06%. Streaming device maker Roku (ROKU) closed at $131.22/share +1.91% 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. Intel (INTC) closed at $52.23 up .99% but is up 3.75% in the aftermarket after beating Q3 expectations.

After The Market

Alternative-protein maker Beyond Meats (BYND) reported its Q1 profit as a newly minted public company and beat analyst expectations (top $92 m vs$22.4  and bottom $11m vs $6.77M). They also boosted full-year guidance from  $267M to $275M in revs and $from $14.3 M  to $20 M in adjusted EBITDA.

Tomorrow

Merck (MRK) Pfizer (PFE) reports earnings on 10/29/2019 before the market open

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