“Pause” Vista Partners Daily Market Recap 11/6/19

By John Heerdink LinkedIn

Wednesday, November 6th seemed to produce a time that most were pausing as the markets were basically flat.  The markets’ recent runup into record territory called for this to happen and of course, we had to deal with yet another turn of understanding with regard to the trade wars too as stories surfaced that the “Phase 1” signing that was a foregone conclusion may be delayed until December. The economic calendar is a bit light so far this week too and a few earnings reports that have surfaced of note have been mixed this week.

The S&P 500 ended today’s session +2.16 points or +.07% as it closed at 3,076.78. The healthcare sector led the way today moving up +.6% while the energy sector retreated -2.3%.  The Dow also moved down -.07 points closing at 27,492.56.  The tech-heavy Nasdaq Composite closed at 8,410.63 -.29% or -24.05 points. The Russell 2000, the small-cap stock market index representing the bottom 2,000 stocks in the Russell 3000 Index also moved down -10.7 points -.63% and it ended trading at 1,589.54 and shouting distance of its 52-wk high of 1,618.37.

Treasury yields ended down today.  The 2-yr Treasury yield closed at 1.60% & the 10-yr yield finished higher at 1.81%.

Oil prices reversed to going down -1.6% today closing at $56.35/bbl. Chevron (CVX) closed at $119.90/share jumping -1.67%, Exxon (XOM) closed at $71.49/share +-2.19%. Occidental Petroleum (OXY) closed at $39.61/share -5.49%. Chevron reported earnings late last week of $.75, beating estimates of $.681 per share. Exxon Mobil (XOM) reported earnings recently of $1.36, missing estimates of $1.564 per share. OXY missed earnings estimates this week and is currently slashing spending after closing its recent $38B buyout of Anadarko Petroleum.

Gold prices closed $1,495.30/oz +$7.1/oz. Silver closed at $17.69/oz +$.05/oz. Hecla Mining Company (HL) closed at $2.37/share +3.04% 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. HL reports Q3 2019 results on Nov. 7th at 10 am eastern (call in # is 1-855-760-8158 and the passcode is HECLA.) First Majestic Silver (AG) closed higher at $10.18/share +.39% 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 moved lower today.  The CBOE Volatility Index (VIX) closed at $12.62/share -3.66% or -$.48/share. The 2x leveraged ETF (TVIX)  closed at $8.72/share -.34% or -$.03/share and traded between $8.68 and $9.08 today.

Economic Reports

  • Monday offered the Factory Orders report for September that went down by -.6%.
  • On Tuesday, the ISM Non-Manufacturing Index for October moved higher to 54.7%. The U.S trade deficit trimmed in September to $52.5B. The September Job Openings & Labor Turnover Survey confirmed that job openings went down to 7.024M.
  • On Wednesday, the Nonfarm business sector labor productivity report showed that it had gone down -.3% in Q3. Unit labor costs rose +3.6%. The weekly MBA Mortgage Applications Index report decreased by -.1% w/w.

Big Movers

High-margin luxury fragrances firm Coty Inc. (COTY) reported Q1 2020 and showed strong gross margin improvement while beating bottom-line expectations and meeting revenue expectations. Shares of COTY rose a healthy +13.61% closing at $13.02/share with a $10.03B market cap.

Healthcare

The S&P 500 healthcare sector closed at 1089.91 +.56%. UnitedHealth Group (UNH) closed at $250.52/share +.09% after a recent Q3 earnings beat on 10/15/19, Walgreens Boots Alliance (WBA) closed at $59.49/share -2.81%, Walgreens reported earnings on 10/28/2019 of $1.43/share, missing estimates calling for $1.451 per share & Cigna (CI) closed up +2.01% closing at $183.12/share.

According to the CDC 1 in 8 couples needs fertility treatment.  INVO Bioscience, Inc. (IVOB) is a medical device company focused on creating alternative treatments for patients diagnosed with infertility and developers of INVOcell®, the worlds only in vivo Intravaginal Culture System. IVOB announced recently 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.

This week, Parents magazine, a leading publication devoted to parenting from pregnancy to the school years, announced in its recent issue that the Center for Assisted Reproduction in Bedford and Fort Worth, Texas, owned by Drs. Kevin and Kathy Doody have been judged to be one of the 10 Best Fertility Clinics for InnovationThe article discusses Drs. Kevin and Kathy Doody’s championing of the INVOcell, including being a pilot clinic for the device in 2013. In 2013, the INVOcell device was piloted in a clinic in the United States by Drs. Kevin and Kathy Doody, who now practices at the Center For Assisted Reproduction (C.A.R.E.). The device was said to help women conceive by making their bodies into human incubators. “About the size of a wine cork and made of clear polystyrene, the device uses the human body to replace expensive incubators that normally keep the eggs and sperm warm for around a week before doctors check to see which eggs fertilized, placing one in the mother’s uterus,” according to a magazine article. INVOcell was approved by the FDA in 2015. And this year, the device made headlines after two women used the device to both carry their baby at some point in the pregnancy, referred to as a reciprocal effortless IVF treatment. Eggs were harvested from one partner, who kept the device with eggs and sperm inside her for the first five days. Then, they were transferred to her partner, who gave birth to the couple’s son.

Steve Shum, president and chief executive officer of INVO Bioscience said, “Drs. Kevin and Kathy Doody of the Center for Assisted Reproduction, are real pioneers in the modern practice of fertility treatment. They recognized early-on the need for an alternative method to traditional IVF process to enable many couples the opportunity to start families that they so greatly desired. By championing the innovative INVOcell technology they have made possible to hundreds of couples the most fulfilling act of their lives; the birth of a healthy baby. We salute them and Parents magazine for recognizing their efforts.”

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

IVOB closed trading at $.291/share. The 52-wk range is $.25 – $.63.

Biotech

The Ishares Nasdaq Biotechnology ETF (IBB) moved +.02% closing at $108.31 & the NYSE Arca Biotech Index (^BTK) closed at 4,465.05 -.86%.

Johnson & Johnson (JNJ) closed at $130.96/share +.41%, Merck & Co (MRK) closed at $83.25/share +.40%, Pfizer (PFE) closed at $37.61/share +.35%. Merck (MRK) reported earnings on 10/29/2019 of $1.51, beating estimates of $1.28 per share. Pfizer (PFE) reported earnings on 10/29/2019 of $.75, beating estimates of $.644 per share.

Atossa Genetics (ATOS) closed trading at $1.62/share. 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.

Tech & Entertainment

Apple (AAPL) closed at $257.24/share +.04% as optimism continues to grow with regard to the new iPhone models and new streaming entertainment offering, Alphabet (GOOG) closed at $1291.80/share -.02%, Facebook (FB) closed at $191.55/share -1.43%, Microsoft (MSFT) closed at $144..06/share -.28%, NVIDIA (NVDA) closed at $207.63/share -.94%. Bank of America/Merrill Lynch recently raised its NVDA price target to $250 from $225. IBM closed at $138.78/share +.65% as it recently missed wall street Q3 expectations while Cisco Systems (CSCO) gained +1.07% finishing at $48.27/share. Goldman Sachs (GS) ($218.42/share -.10%) recently downgraded CSCO as it views that corporate spending on technology has weakened. Disney (DIS) closed at $131.27/share -.14% as it recently announced that it was teaming with Verizon (VZ) ($60.13/share, +1.06%) and its new streaming service Disney+ will now be given to all new customers of Verizon for a year, and Netflix (NFLX) closed at $288.59/share +.19%. Amazon (AMZN) closed at $1,795.77/share -.33%.

Streaming device maker Roku (ROKU) closed at $141.05/share +1.06% today but the shares have fallen to $119.98 off 14.94% as it reported earnings after the close beating both top and bottom Wall Street expectations but also reduced its profitability outlook for 2019 as a whole. adjusting it from $30M from $35M reflecting continued investing in the business and Q4 dataxu operations and acquisition expenses.

Boeing (BA) closed at $354.19/share -1.14% after their CEO’s recent testimony to the Senate.

Still Due This Week

Disney (DIS) reports earnings on 11/7/2019 after the market close.

Hecla Mining (HL) before the market opens 11/07/2019.

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