“Loving Cut” Vista Partners Daily Market Recap 6/5/19

By John Heerdink LinkedIn

Participants and pundits alike seemed to believe and love the idea that the Fed will be cutting interest rates this year and possibly even as soon as their next meeting. This belief was fueled by Fed Chair Jerome Powell’s recent comments assuring the Fed would do what it had to do to continue expansion with low inflation and the tariff war disruption at hand. It was further charged post our receiving relatively poor economic data that seemed to confirm that growth is slowing and the Fed would need to act in the near turn.  The ADP Employment report came in and confirmed that an estimated 27k jobs were added to private-sector payrolls in May well short of estimates. Jobs in the goods-producing sector also fell decreased by 43k while jobs in the service-providing sector increased by 71k. This was more than enough to buoy markets ahead again today.

The S&P 500 ended the session up .82% at 2826.15. The Dow added 207.39 points up .82% closing at 25,539.57 while the tech-heavy Nasdaq moved up .64% closing at 7575.48 up 48.36 points & the Russell 2000, the small-cap stock market index of the bottom 2,000 stocks,  was up nicely by 2.62% and closed at 1508.56 up 38.58 points.

The Federal Reserve’s June Beige Book outlined economic activity as expanding or improving at a “modest” pace with vehicle sales showing a decreased across most districts, employment continued increasing nationwide & overall prices realized “modest” upward pressure.

The tech giants that were hit with the antitrust stories recently were up across the board and seemed to charge the balance of the market as they represent major components.  Amazon (AMZN) was up .52%,  Alphabet (GOOG) was down 1.03%, Apple (AAPL) rose 1.61% & Facebook (FB) bumped up .4%. The balance of the tech sector lifted for the most part. Intel (INTC) notched down .54% closing at $44.55/share. Shares of Microsoft (MSFT) closed higher at $125.83 up 2.17%.  Interestingly, Uber Technologies (UBER), the ride-sharing company closed higher at $45/share up 5.26% as it rose higher throughout the day and actually exceeded its IPO price of $45 for the first time as it hit $45.66. Investors continue to react positively to last week’s earnings report that confirmed that it did not lose as much as expected and their bookings are seeing double-digit increases. They also received a Buy rating from a number of firms that initiated yesterday.

Treasury yields fell again. The 2-yr yield ended lower at 1.84 & the 10-year Treasury note closed down at 2.12%.

The US Dollar Index was up .3% at 97.34.

Oil prices dropped throughout the day past increased bearish data surfaced and closed at $51.50/bbl. Dow 30 energy participants Chevron (CVX) closed up at $117.65 or .3% & Exxon (XOM) closed down at $72.98 down .83%.

Volatility bets were hit again today but traded in a reduced range. The CBOE Volatility Index (VIX) closed at $16.09 & down 5.19%. It traded between $16.04 – $17.49. The 2x leverage ETF TVIX also closed lower too at $22.53 down 4.01% and traded between $22.37 and $23.90 today.

Dow 30 components & the world’s leading manufacturer of construction & mining equipment Caterpillar (CAT) closed at $122.08 up 1.19%.

Pharmaceutical giant Merck & Co, Inc. (MRK) rose to $81.08 up 1.02%.

Entertainment giant Disney (DIS) closed at $134.82 up 1.77%. See our latest story on Disney: Will Georgia’s Abortion Law “Force” Disney To Stop Filming In The State?

Home Depot (HD) charged up again today another 1.44% closing at $196.69.

Community Health Systems, Inc. (CYH) one of the largest publicly traded hospital companies in the US hit an intraday high of $2.98/share & a low of $2.66 today and closed the day at $2.70 of a whopping 8.16% on 2.66 million shares of trading after more “ambulance chasers” or class action lawsuit press releases surfaced as they continue to negotiate for their piece of the hospital operators hide. 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 $2.38/share as traded as high as $2.5096. The average daily trading volume is 3.06 million shares per day.  Atossa CFO Kyle Guse presented at the LD Micro Invitational Conference yesterday in LA.  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 $19.06/share on 580,786 shares of trading after establishing a new all-time intraday high last week of $20.34. The 52-week range is $8.64 – $20.65. Guggenheim Securities initiated coverage on FATE last week with a “Buy Rating” and a $25/share price target.

INVO Bioscience, Inc. (IVOB) ended the day up 9.78% at $.34. IVOB is a medical device company, headquartered in Medford, Massachusetts, 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. IVOB today announced that it will participate at the 35th Annual Meeting of the European Society of Human Reproduction and Embryology (“ESHRE”) in Vienna, Austria June 23 – 26, 2019. ESHRE is the leading European-based scientific trade organization devoted to research, education, and advocacy relating to all facets of human reproduction and embryology.

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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