“Summer Consumer Inflation?” Vista Partners Daily Market Recap 6/12/19

By John Heerdink LinkedIn

The consumer inflation or CPI reports came in today and basically met expectations. The total CPI & the core CPI (sans food & energy prices) both increased by .1%. What does the mean? Basically, inflation is in check and reinforces the belief that The Fed will likely need to raise interests next week or sometime in the near future to support future growth. This would have seemed to be enough to lift the markets but today we had to deal with a few summer clouds covering us and that were unfortunately lined with a solid dose of US-China trade war uncertainty.

This led to the markets decline again today except for the little guys. The S&P 500 ended the session down .2% at 2879.84. The Dow dropped 43.68 points down .17% but still above 26k at 26,004.83 while the tech-heavy Nasdaq lost .38% closing at 7792.72 down 29.85 points & the Russell 2000, the small-cap stock market index of the bottom 2,000 stocks,  rose .68% and closed at 1519.79 up .045 points.

The US Dollar Index moved lower .1% ending the day at 96.70.

The 2-yr treasury yield ended at 1.89% down .04 & the 10-year Treasury note closed at  2.13% down .01. The weekly MBA Mortgage Application Index jumped a whopping 26.8% with the recent decline in rates.

Volatility bets closed slightly lower today. The CBOE Volatility Index (VIX) closed at $15.91 & down .5%. It traded between $15.78 – $16.40. The 2x leverage ETF TVIX also closed lower at $21.56 down .92% and traded between $21.45 and $22.42 today.

Oil prices moved lower by a solid 4.1% closing at $51.16/bbl on somewhat bearish inventory reports. Dow 30 energy participants Chevron (CVX) moved down by .81% closing at $120.19 & Exxon (XOM) closed at $74.03 down 1.08%. The S&P 500 energy sector was by the worst performing sector dropping 1.4%.

Institutional alternative asset manager Och-Ziff Capital Management Group (OZM) continued to fly forward as it closed at $20.77 up 3.75% after hitting $21.21 intraday trading. OZM sports a healthy 5.65% cash dividend.

In the large company tech world, it was overall a sobering day.  Amazon (AMZN) moved lower down .45% closing at 1,855.32,  Alphabet (GOOG) was down .16% closing at 1,077.03, Apple (AAPL) lost .32% closing at $194.19 & Facebook (FB) fell 1.72% closing at $175.04. Intel (INTC) lost 1.13% closing at $46.32/share. Shares of Microsoft (MSFT) closed lower at $131.49 down .46%. However, Zoom Video Communications (ZM) regained momentum closing at $102.77 up 8.33% but Uber Technologies (UBER), the ride-sharing company continued to drop as it closed at $42.17/share down .66% still below its recent IPO price of $45.

Entertainment giant Disney (DIS) closed at $135.72 gaining .47%. See our latest story on Disney: Will Georgia’s Abortion Law “Force” Disney To Stop Filming In The State?

Home Depot (HD) increased .47% closing at $198.94.

Dow 30 component & the world’s leading manufacturer of construction & mining equipment Caterpillar (CAT) closed at $127.10 down .14%.

McDonald’s (MCD) closed at $204.93 up .82%.   Plant-based burger maker Beyond Meat (BYND) closed at $141.97 swinging back up 12.64%. Their meat is made of four main ingredients: water, pea protein isolate, canola oil & refined coconut oil and is meant to taste like “meat.”

As for as healthcare sector today, the pharmaceutical giant and Dow component Merck & Co, Inc. (MRK) closed at $83.71 up another .88%.

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 $2.58 today and closed the day at $2.71 down .73% on 2.03 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.

In the biotechnology sector, we saw the Ishares Nasdaq Biotechnology ETF (IBB) bounced .61% closing at $103.33.

Atossa Genetics (ATOS),  a Seattle-based biotech firm developing novel therapeutics and delivery methods to treat breast cancer and other breast conditions, closed at $2.15/share as it traded as high as $2.205. The average daily trading volume is 3.06 million 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 $16.54/share on 555,393 shares of trading after establishing a new all-time intraday high of $16.55. 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.

Boston-based Pieris Pharmaceuticals (PIRS) closed at $4.16 down .72%.

Xeris Pharmacueticals, Inc. (XERS) closed at $9.49 up a sizable 13.65% on 241,982 in trading volume. Xeris is a specialty pharmaceutical company leveraging its novel formulation technology platforms to develop and commercialize ready-to-use injectable and infusible drug formulations.

INVO Bioscience, Inc. (IVOB) ended the day at $.3849/share. 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 that it will participate at the 35th Annual Meeting of the European Society of Human Reproduction and Embryology (“ESHRE”) in Vienna, Austria June 23 – 26, 2019. ESHRE is the leading European-based scientific trade organization devoted to research, education, and advocacy relating to all facets of human reproduction and embryology.

Looking forward to seeing how all plays out again tomorrow!

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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