“Phase 1 Today” Vista Partners Daily Market Recap 11/4/19

By John Heerdink LinkedIn

Monday, November 4th brought our attention again towards stories regarding the US-China trade wars. Specifically that we should have confidence that a phase 1 agreement is still on track for this year between these two super economic powers. US Commerce Secretary Wilbur Ross shared that he believed we might even see that licenses may be granted soon to companies so that they can again work with Huawei & that auto tariffs on imported products may not even be imposed at the end of the day. These actions seemed to be enough to give the market further fuel to push up further into record territory. It feels like we might be flying with Elon Musk and his SpaceX program to Mars soon at this pace…

At the end of the trading day, the S&P 500 ending today’s session +11.36 points or +.37% as it closed at 3,078.27. The energy sector jumped another +3.2% to lead the way as oil prices closed at $56.69/bbl +0.9% today.  The Dow also moved +114.75 points closing at 27,462.11 +42%. The tech-heavy Nasdaq Composite closed at 8,433.20 +.56% or +46.80 points. The Russell 2000, the small-cap stock market index representing the bottom 2,000 stocks in the Russell 3000 Index also moved substantially by +8.07 points +.51% and it ended trading at 1,597.40 and nears its 52-wk high of 1,618.37.

Treasury yields ended up again today.  The 2-yr Treasury yield closed at 1.59% & the 10-yr yield finished higher at 1.79%.

Oil prices moved up .9% today closing at $56.69/bbl. Chevron (CVX) closed at $121.57/share jumping +.4.61%, Exxon (XOM) closed at $71.67/share +2.97%. Occidental Petroleum (OXY) closed at $44.23/share +4.59%. 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.

Gold prices closed $1,510.60/oz. Silver closed at $18.04/oz. Hecla Mining Company (HL) closed at $2.32/share -.43% 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 pc is HECLA.) First Majestic Silver (AG) closed higher at $10.65/share down 3.09% 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 higher today.  The CBOE Volatility Index (VIX) closed at $12.83/share +4.31% or +$.53/share. The 2x leveraged ETF TVIX  closed at $8.44/share +.12% or +$.01/share and traded between $8.15 and $8.57 today.

Economic Reports

Monday offered the Factory Orders report for September that went down by -.6%

Big Movers

Large medical device firm Stryker (SYK) announced that it is buying Wright Medical Group (WMGI), a smaller medical device company that specializes in upper extremities, for $30.75/share or $4B in cash assigning a $5.4 billion total enterprise value to Wright including debt. STK shares closed at $205.17/share off -3.57% and shares of WMGI closed at $29.04/share up +31.94%.

McDonald’s Chris Kempczinski has taken the reins at McDonald’s replacing Steve Easterbrook as the company’s new CEO. On Sunday reportedly Easterbrook was ousted after a recent “consensual relationship” with an employee was disclosed. Kempczinski, an MBA graduate from Harvard Business School completed his bachelor’s from Duke University. He started his career as a brand manager with Procter & Gamble (PG) for four years after which he has worked with PepsiCo  (PEP) and Kraft Foods (KHC). Kempczinski has been in service with McDonald’s since October 2015 where he joined as a part of the global strategy team and was promoted as President, Operations USA within one and a half years of service. Shares of MCD closed trading at $188.66/share down 2.72%.

Phoenix’s Alpine 4 Technologies (ALPP) shot up +71.29% today to close trading at $.4111/share after reaching $.43/share on trading volume of 10.71 million shares. No news was released.

Healthcare

The S&P 500 healthcare sector closed at 1093.62 -.35%. UnitedHealth Group (UNH) closed at $251.25/share -.38% after a recent Q3 earnings beat on 10/15/19, Walgreens Boots Alliance (WBA) closed at $59.65/share +3.96%, 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.

1 in 8 couples needs 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. The 52-wk range is $.25 – $.63.

Biotech

The Ishares Nasdaq Biotechnology ETF (IBB) moved lower -.32% at $109.50 & the NYSE Arca Biotech Index (^BTK) closed at 4,515.61 -.25%.

Johnson & Johnson (JNJ) closed at $130.23/share -.74%, Merck & Co (MRK) closed at $83.90/share -1.22%, Pfizer (PFE) closed at $38.03/share -.94%. 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 $1.67/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 $257.50/share +.66% as optimism continues to grow with regard to the new iPhone models and new streaming entertainment offering, Alphabet (GOOG) closed at $1291.37/share +1.38%, Facebook (FB) closed at $194.72/share +.57%, Microsoft (MSFT) closed at $144.55/share +.58%, NVIDIA (NVDA) closed at $210.50/share +3.90%. Bank of America/Merrill Lynch recently raised its NVDA price target to $250 from $225. IBM closed at $137.67/share +1.58% as it recently missed wall street Q3 expectations while Cisco Systems (CSCO) gained +.97% finishing at $47.48/share. Goldman Sachs (GS) ($219.87/share +1.14%) recently downgraded CSCO as it views that corporate spending on technology has weakened. Disney (DIS) closed at $132.92/share +.13% as it recently announced that it was teaming with Verizon (VZ) ($59.87/share, -.83%) and its new streaming service Disney+ will now be given to all new customers of Verizon for a year, and Netflix (NFLX) closed at $292.86/share +2.11%. Amazon (AMZN) closed at $1,804.66/share +.74%. Streaming device maker Roku (ROKU) closed at $140.51/share -4.09% 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 $57.61 +1.95% after beating Q3 expectations recently. Boeing (BA) closed at $351.09/share +1.71% 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.

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