Quadruple-witching day presented itself this fine Friday after a week of market jumps & eclipsed records which were fueled by the ongoing flow of dovish comments and confirmations by the Fed. What is quadruple-witching day? It is when the markets simultaneously experience the expiration of contracts for stock index futures, stock index options, stock options, and single stock futures. It happens on the third Fridays of March, June, September, and December. Typically these days bring forward higher volumes & volatility and this day proved to be true to its nature.
Today the markets overall fell a little to end the week. The S&P 500 dropped 3.72 points and closed at 2,950.46 down .13% on the day. The Dow fell 34.04 points closing down .13% at 26, 719.13. The Russell 2000, the small-cap stock market index of the bottom 2,000 stocks, moved down .89% giving back 13.87 points to close at 1549.63 & the tech-heavy Nasdaq drifted lower by .24% closing at 8,031.71 down 19.63 points.
Volatility bets closed higher today & both gained solidly into the close. The CBOE Volatility Index (VIX) closed higher at $15.40 & up 4.41%. It traded between $14.42 – $15.48. The 2x leverage ETF TVIX also closed higher at $19.76 up 4.11% and traded between $18.78 and $19.92 today.
The US Dollar Index was down .4% again today ending the day at 96.20.
The 2-yr treasury yield ended up at 1.78% (+.06) & the 10-year Treasury note closed up at 2.07% (+.07).
Oil prices bumped .4% higher after yesterday’s strong move (~+6%) closing at $57.37/bbl after Iran shot down a U.S. military drone yesterday and the increased uncertainty. Dow 30 energy participants Chevron (CVX) moved higher by .52% closing at $124.93 & Exxon (XOM) closed at $77.69 up by 1.41%.
The Ishares Nasdaq Biotechnology ETF (IBB) moved up again by .42% closing at $109.45. This sector continues its healthy run over the last 30 days.
Bedford, Massachusetts-based Stoke Therapeutics is a biotechnology company pioneering a new way to treat the underlying cause of severe genetic diseases by precisely upregulating protein expression. On Wednesday, Stoke Therapeutics announced the pricing of its initial public offering (IPO) of 7,891,110 shares of its common stock at a price to the public of $18.00 per share. The shares are now trading on The Nasdaq Global Select Market as of June 19, 20,19 under the symbol “STOK.” Stoke’s stock traded as high as $30 this week prior to closing trading at $27.29/share up 4.96% on Friday. See complete story.
INVO Bioscience, Inc. (IVOB) ended the day at $.3850. 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 announced this week news of the recent appointment of Pressly Ahammed as the new Director of International Business Development and he will be responsible for the Company’s international distribution channels in Europe, Middle East, Africa & parts of Asia. Ahammed joined IVOB from Cooper Surgical where he held a similar position. See complete story.
Pfizer (PFE) closed up .16% at $43.67 after this week’s announcement about their acquisition of Array BioPharma (ARRY) for ~$11.4 billion or $48/share in cash. The pharmaceutical giant and Dow component Merck & Co, Inc. (MRK) that recently announced the acquisition of Tilos Therapeutics for a consideration of up to $773 million closed at $84.57 down slightly by .04%.
Community Health Systems, Inc. (CYH) one of the largest publicly traded hospital companies in the US hit an intraday high of $2.74/share & a low of $2.40 today and closed the day at $2.71 up 8.40% on a spike 7.73 million shares of trading. 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.
Atossa Genetics (ATOS), a Seattle-based biotech firm developing novel therapeutics and delivery methods to treat breast cancer and other breast conditions, closed at $2.04/share. The average daily trading volume is 791,392 shares per day. 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), dedicated to the development of programmed cellular immunotherapies for cancer and immune disorders, closed at $19.90/share up 1.65% on 468,225shares of trading after establishing a new all-time intraday high of $19.95. 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. Scott Wolcho, President and CEO of Fate Therapeutics presented at the Jefferies 2019 HealthcareConferencee in New York yesterday. Roth Capital initiated coverage on FATE with a Neutral rating and a $20 price target last Friday, June 7th. Mizuho initiated coverage with a price target of $27/share this week.
Boston-based Pieris Pharmaceuticals (PIRS) closed at $4.56 up 7.29% on 640,546 shares of trading.
Xeris Pharmacueticals, Inc. (XERS) closed at $11.11 up 4.03%. Xeris is a specialty pharmaceutical company leveraging its novel formulation technology platforms to develop and commercialize ready-to-use injectable and infusible drug formulations.
Big tech stocks came inmixed again today. Amazon (AMZN) lost .36% closing at 1,911.30, Alphabet (GOOG) was up .94% closing at 1,121.88, Apple (AAPL) was down .34% closing at $198.78, Facebook (FB) rose .85% closing at $191.14. Shares of Microsoft (MSFT) bumped higher by .01% closing at $136.97 & Intel (INTC) gained .57% closing at $47.46/share.
On the recent IPO front, Zoom Video Communications (ZM) moved lower by 1.79% closing at $100.47 & Uber Technologies (UBER), the ride-sharing company rose .32% closing at $44/share but still below its recent IPO price of $45. Plant-based burger maker Beyond Meat (BYND) closed at $154.13 lower losing 6.68%. Their meat is made of four main ingredients: water, pea protein isolate, canola oil & refined coconut oil and is meant to taste like “meat. Slack Technologies (WORK) which jumped into the public markets with their IPO yesterday flying up 48.5% from their offering price of $26/share closed Friday at $37.22 off 3.63%. Slack is a provider of a cloud-based workplace messaging app and went public via a direct listing avoiding paying fees to the relevant banks.
Entertainment giant Disney (DIS) closed at $140.23 giving back 1.26%.
Institutional alternative asset manager Och-Ziff Capital Management Group (OZM) closed at $22.47 up .31%. The 52-wk range is $8.60 – $23. OZM sports a healthy 5.65% cash dividend.
Home Depot (HD) lost .88% ending the day at $209.39.
Dow 30 component & the world’s leading manufacturer of construction & mining equipment Caterpillar (CAT) closed at $133.89 up .19%.
McDonald’s (MCD) closed lower at $204.26 off .42%.
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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