“Splash Of Green” Vista Partners Daily Market Recap 10/17/19

By John Heerdink LinkedIn

It was a splash of green for all across the board in the markets today as it pointed to a number of better than expected earnings reports and news from across the pond that a Brexit deal may be in the works. The S&P 500 ended today’s session up by 8.26 points or .28% as it closed at 2,997.95 just shy of the 3k level. The Dow lost 23.90 points closing over the 27k level at 27,025.88 up by .09%. The tech-heavy Nasdaq Composite closed above the 8k mark closing at 8,156.85 up .40% or 32.67 points. The Russell 2000, the small-cap stock market index representing the bottom 2,000 stocks in the Russell 3000 Index moved higher adding 1.76 points up .12% and it ended trading at 1,525.06.

Treasury yields moved higher today.  The 2-yr Treasury yield closed Friday closing at 1.61% up by .02% & the 10-yr yield finished higher at 1.76% equally up by .01%.

The U.S. Dollar Index weakened closing at 97.62 down .4%.

Oil ended up .9% closing at $53.89/bbl. Chevron (CVX) closed at $115.35/share up .21%, Exxon (XOM) closed at $68.14/share down by .13%. Occidental Petroleum (OXY) closed at $40.33/share down .02%.

Gold prices closed at $1,490.64/oz. Silver closed at $17.63/oz. Hecla Mining Company (HL) closed at $2/share up 7.53% after last Monday’s 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 $10.37/share up a solid 4.22% after this 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 were mixed today and traded in a relatively tight pattern.  The CBOE Volatility Index (VIX) closed at $13.79/share up .80% or $.11/share. The 2x leveraged ETF TVIX  closed at $10.77/share down 1.28% or $.14/share and traded between $10.48 and $10.90 today.

Economic Reports

No economic data was received on Monday. On Tuesday, we received the Empire State Manufacturing Survey for October, which moved higher ending at 4. On Wednesday, the total retail sales report was confirmed to have dropped .3% m/m in September while excluding autos, retail sales dropped .1%. Total business inventories came in flat m/m in August. Total business sales reported as an increase up .2%. The NAHB Housing Market Index report for October rose to 71 while the weekly MBA Mortgage Applications Index moved higher by .5%. Thursday brought forth the total housing starts report which showed a 9.4% dropped month/month in September to a seasonally adjusted annual rate of 1.256M while building permits declined 2.7% to a seasonally adjusted annual rate of 1.387M. Single-family starts increased .3% to 918k as single-family permits increased .8% to 882k. Initial claims for the week ending October 12 rose by 4k to 214k while continuing claims for the week ending October 5 dropped by 10k to 1.679M. Industrial production went down .4% month/month in September. Total capacity utilization descended to 77.5%. The Philadelphia Fed Index for October landed at 5.6.

Big Movers

Hecla Mining Company (HL) closed at $2/share up 7.53% after last Monday’s 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.

Teva Pharmaceutical Industries Limited (TEVA) jumped 11.80%  closing at $7.77/share as stories flew that a $50B settlement over opioids among several drug distributors, including TEVA, may be closer to the finish line than many expected.

Healthcare

The S&P 500 healthcare sector closed at 1065.21 up .76%. UnitedHealth Group (UNH) closed higher by 2.82% closing at $243.67/share after a Q3 earnings beat on 10/15/19, Walgreens Boots Alliance (WBA) closed at $55.94/share up 2.34% & Cigna (CI) gained 2.04% closing at $164.77/share.

INVO Bioscience, Inc. (IVOB) ended the day at $.30/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.

INVO Bioscience announced recently that the Company will exhibit at the American Society for Reproductive Medicine (ASRM) 2019 Scientific Congress & Expo on October 12-16, 2019 in Philadelphia, PA at booth #1807 and the 20th World Congress of the International Society for In-Vitro Fertilization (ISIVF) on October 24-26, 2019 in Barcelona, Spain at booth #15. Kathleen Karloff, Chief Executive Officer of INVO Bioscience, commented, “We are pleased to participate in these important international industry events. We are gratified with the growing global acceptance of our INVOcell technology. INVOcell opens the door to pregnancy and the development of families for a large number of couples where more traditional methods have not. We provide hope to those that have exhausted other options, and we do it with a more natural experience and in a more cost-efficient manner. We are proud to have developed an effective treatment that will increasingly occupy a unique position in the fertility treatment industry worldwide.”

On 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 by .66% at $103.03 & the NYSE Arca Biotech Index (^BTK) closed at 4,299.40 up .31%.

Johnson & Johnson (JNJ) closed at $136.17  up .74% after they recently received last’s week court Philly order to pay $8B in damages to a man who used their antipsychotic Risperdal in his youth. The JNJ drug apparently caused a condition called gynecomastia which is the enlargement of breast tissue and failed to properly warn him of the risks. However, JNJ did beat earnings expectations this week. Stories of the several drug distributors including JNJ and Teva Pharmaceuticals (TEVA) are close to a $50 billion deal for opioid lawsuits surfaced today.

Atossa Genetics (ATOS) closed trading at $1.76/share on this 17th day of October’s Breast Cancer Awareness Month. This week, 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.” To READ the complete story click here.

Tech & Entertainment

Apple (AAPL) closed at $235.28/share up .39% as optimism continues to grow with regard to the new iPhone models and new streaming entertainment offering, Alphabet (GOOG) closed at $1253.07/share up .76%, Facebook (FB) closed at $190.39/share up .44%, Microsoft (MSFT) closed at $139.69/share down .51%, NVIDIA (NVDA) closed at $194.29/share up .04%. Bank of America/Merrill Lynch recently raised its NVDA price target to $250 from $225. IBM closed at $134.26/share down 5.52% as it missed wall street Q3 expectations while Cisco Systems (CSCO) gained .51% finishing at $47.03/share. Goldman Sachs (GS) recently downgraded CSCO them as it views that corporate spending on technology has weakened. Disney (DIS) closed at $132.37/share up 1.15% and Netflix (NFLX) closed at $293.35/share gaining 2.47% as they recently beat earnings expectations. Amazon (AMZN) closed at $1,787.48/share up .57%. Streaming device maker Roku (ROKU) closed at $139.07/share up 4.96% 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.

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