“Moderately Green Session” Vista Partners Daily Market Recap 10/23/19

By John Heerdink LinkedIn

A number of companies from the S&P 500 & Dow 30 continued to report their Q3 earnings again today with varying degrees of success or failures to meet Wall Street’s expectations, but at the end of the day, the markets ended in moderately green territory. Of note, Boeing (BA) reported earnings of $1.45, missing estimates seeking $2.205/share & Caterpillar (CAT) reported earnings of $2.66, missing estimates seeking $2.854/share.

At the end of the day, the S&P 500 ended today’s session up by 8.53 points or +.28% as it closed above the 3k level again at 3,004.52. The Dow lost 45.85 points closing at 26,833.95 +.17%. The tech-heavy Nasdaq Composite closed above the 8k mark closing at 8,119.79 +.19% or +15.50 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 points +1.99% and it ended trading at 1,552.86.

Treasury yields moved in concert lower today.  The 2-yr Treasury yield closed at 1.58% up by .03% & the 10-yr yield finished lower at 1.76% down by .01%.

The U.S. Dollar Index weakened by .1% today closing at 97.46.

Oil moved 2.7% higher today closing at $55.83/bbl. Chevron (CVX) closed at $117.98/share +.15%, Exxon (XOM) closed at $69.75/share +.96%. Occidental Petroleum (OXY) closed at $42.92/share +1.66%.

Gold prices closed at $1,486.11/oz. Silver closed at $17.62/oz. Hecla Mining Company (HL) closed at $2/share +.50% 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 $10.04/share +1.52% after last week’s 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 lower today.  The CBOE Volatility Index (VIX) closed at $14.01/share -3.11% or -$.45/share. The 2x leveraged ETF TVIX  closed at $10.15/share -2.12% or -$.22/share and traded between $10.10 and $10.53 today.

Economic Reports

We did not get any economic reports on Monday. However, on Tuesday, the existing home sales report confirmed that they had lowered by 2.2% m/m in September to a seasonally-adjusted annual rate of 5.38M while total sales jumped 3.9% compared to the same period last year. Wednesday brought forth the MBA Mortgage Applications Index report for the week ending October 19 and it decreased 11.9% while the FHFA Housing Price Index Report for August rose by .2%.

Big Movers

Shares of Lithia Motors, Inc. (LAD) jumped +17.29% closing at $152.85/share.  LAD is one of the largest providers of personal transportation solutions in the US & is one of the fastest-growing companies in the Fortune 500. Today they reported Q3 financial results where revenue increase 8% to a record $3.3 billion and net income per diluted share was $3.64. They also declared a $.30/share Q3 dividend.

Healthcare

The S&P 500 healthcare sector closed at 1069.33 +.63%. UnitedHealth Group (UNH) closed down -.67% closing at $247.80/share after a Q3 earnings beat on 10/15/19, Walgreens Boots Alliance (WBA) closed at $54.56/share -1.37% & Cigna (CI) gained 1.48% closing at $172.91/share.

INVO Bioscience, Inc. (IVOB) ended the day at $.2824/share. Daily trading volume continues to rise in concert with their announcing progress after their exclusive U.S. partnership with Ferring Pharmaceuticals, a leader in the reproductive health industry was announced in Q1-2019. Ferring has committed to providing the necessary sales and marketing resources to more fully develop the market in the United States. There are countless couples not able to receive reproductive treatments today, and Ferring can be instrumental in addressing the unmet needs of this cohort. Ferring has the industry experience, relationships and the marketing capabilities to successfully embed the INVOcell in clinics throughout the country.  IVOB is a medical device company, headquartered in Sarasota, FL focused on creating simplified, lower-cost treatment options for patients diagnosed with infertility. The company’s lead product, the INVOcell (pictured below), 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.

INVO Bioscience (IVOB) announced on August 2019 that revenues for their most recent quarter totaled $658,638 compared to $110,210 in the second quarter of 2018, an increase of 498%. Revenue growth was driven primarily by increased product sales in the U.S. as shipments to Ferring were above expectations outlined in May 2019 as they began to increase their marketing activities. On January 14, 2019, the Company closed an exclusive U.S. licensing agreement with Ferring International Center S.A. the parent Company of Ferring Pharmaceuticals U.S. to commercialize the INVOcell™ system for use in the treatment of infertility. As part of the U.S. licensing agreement, the Company received a $5 million one-time milestone payment, with the ability to receive an additional $3 million upon obtaining a label enhancement from the U.S. Food and Drug Administration.

Last Monday, INVO Bioscience announced the appointment of Steven Shum (pictured above) as the Company’s Chief Executive Officer, effective immediately. Shum succeeds Kathleen Karloff, who is planning to retire after 12+ years with the Company as its CEO. Karloff will remain in an operational role over the near term, will continue to advise, lend guidance and support to the Company, and will remain Chair of the Board of Directors. “I am extremely pleased to be named Chief Executive Officer of INVO Bioscience. I believe the Company is extremely well-positioned to expand the utilization of our proprietary INVOcell technology throughout the world through strategic partnership agreements in key international markets similar to our U.S. agreement. Further, I believe there is an opportunity to expand upon our success with INVOcell through adjacent technologies that can leverage our position in the market as a leader in fertility and women’s health. I thank Katie for creating a tremendous foundation from which to build upon and am excited to lead the Company into the future. I also appreciate her willingness to remain actively involved until her planned retirement”, stated Steve Shum. Read Complete Story.

Biotech

The Ishares Nasdaq Biotechnology ETF (IBB) moved higher +.321% at $105.64 & the NYSE Arca Biotech Index (^BTK) closed at 4,359.56 +.10.

Johnson & Johnson (JNJ) closed at $129.90/share +.54%, Merck & Co (MRK) closed at $82.87/share + 1.93%, Pfizer (PFE) closed at $36.77/share +.93%

Atossa Genetics (ATOS) closed trading at $1.73/share on this 23rd 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.

Today, ATOS announced that 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 $243.18/share +1.34% as optimism continues to grow with regard to the new iPhone models and new streaming entertainment offering, Alphabet (GOOG) closed at $1259.130/share +1.31%, Facebook (FB) closed at $186.15/share +2.09% as news of its antitrust probe now includes 47 attorney generals as of yesterday, Microsoft (MSFT) closed at $137.24/share +.64%, NVIDIA (NVDA) closed at $195.609/share -.27%. Bank of America/Merrill Lynch recently raised its NVDA price target to $250 from $225. IBM closed at $134.38/share +.31% as it recently missed wall street Q3 expectations while Cisco Systems (CSCO) lost -1.05% finishing at $47.05/share. Goldman Sachs (GS) recently downgraded CSCO as it views that corporate spending on technology has weakened. Disney (DIS) closed at $131.13/share -.96% as it announced that it was teaming with Verizon (VZ) and its new streaming service Disney+ will now be given to all new customers of Verizon for a year, and Netflix (NFLX) closed at $271.27/share +1.72% up from yesterday’s more than 4% drop. Amazon (AMZN) closed at $1,762.17/share -.20%. Streaming device maker Roku (ROKU) closed at $128.76/share -.23% 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.

Tomorrow

  • Dow (DOW) reports earnings on 10/24/2019 before the market open.
  • 3M (MMM) reports earnings on 10/24/2019 before the market open.
  • Intel (INTC) reports earnings on 10/24/2019 after the market close.
  • Visa (V) reports earnings on 10/24/2019 after the market close.


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