The markets swung lower today as we all shrug off the long holiday week or weekend depending on how you handled Independence Day. Two Dow 30 components that hold a great deal of weight were hit with negative news and sentiment today which helped pull it down. Apple (AAPL) was yanked down when Rosenblatt Securities downgraded Apple to “sell” from “neutral” stating that there is “less reward” for owning the stock. They also added, “After strong service revenue growth over the last 4 to 6 quarters and the launch of Apple Music and news, we believe service revenue growth will also decelerate.” AAPL closed at $200.02 off 2.06%. Boeing (BA) also did its part to be a drag down the markets down as Flyadeal a Saudi Arabian budget carrier canceled orders for Boeing 737 Max aircraft. The budget carrier is the first airline to cancel orders for the aircraft after its grounding. BA closed at $351.12 off 1.33%. The markets were also without the adrenalin or belief that interest rates were going to be lowered significantly later this month after Friday’s job report which confirmed that the US economy added 224K new jobs in June which was well above the 161k monthly average in 2019.
Subsequently, all markets were down today. The S&P 500 moved down 14.46 points and closed at 2,975.95 down .48% on the day. The Dow lost 115.98 points closing down .43% ending at 26,806.14. as it continues to flirt with the 27k level. The tech-heavy Nasdaq closed at 8,098.38 down .78% off 63.41 points. The Russell 2000, the small-cap stock market index representing the bottom 2,000 stocks in the Russell 3000 Index which dove 14.24 points closing at 1,561.39 off .90%.The volatility trading range was relatively steady today while volatility bets continued their rise. The CBOE Volatility Index (VIX) closed higher at $13.96 up by a healthy 5.12% or $.68/share. It traded between $13.64 – $14.44. The 2x leveraged ETF TVIX also closed higher at $16.32 up .4.75% or $.74/share and traded between $15.92 and $16.60 today. The US Dollar Index gained again today ending the day at 97.41 up .1% for the day.
Big tech stocks were down for the most part on the back of the negative Apple (AAPL) news except for Amazon (AMZN) which gained .48% closing at 1,952.32. Alphabet (GOOG) lost 1.35% closing at $1,116.35 & Facebook (FB) finished lower too at $195.76 down .33%. Shares of Microsoft (MSFT) lost .07% closing at $136.96. Chipmaker Intel (INTC) ended down .54% closing at $47.828.08/share but Micron (MU) added a solid 2.51% closing at $40.41/share after its recent earnings beat.
Institutional alternative asset manager Och-Ziff Capital Management Group (OZM) closed at $54.31 up 1.63% or $1/share closing off today’s newly minted 52-wk high of $25.32. The 52-wk range is $8.60 – $25.32. OZM sports a 4.18% cash dividend. Los Angeles-based Colony Capital (CLNY) a leading global investment management firm with assets under management of $43 billion closed flat at $5.13 flat after hitting an intraday high of $5.25. CLNY pays an 8.71% cash dividend.
Nike (NKE) closed at $88,48 moving up a respectable 1.91%. Nike recently missed analyst earnings estimates but maintained full-year guidance.
The health care sector moved lower today. The S&P 500 healthcare sector closed at 1077.00 off .75%. Community Health Systems, Inc. (CYH) one of the largest publicly traded hospital companies in the US hit and closed at $2.79 after hitting an intraday high of $2.83/share & also traded at low of $2.76 today on 885,799 shares of trading. On June 27th CYH announced that its subsidiaries signed a definitive agreement to sell 92-bed Bluefield Regional Medical Center in Bluefield, West Virginia, and its associated ancillary healthcare operations to subsidiaries of Princeton Community Hospital. The hospital included in this transaction is among the additional planned divestitures discussed on the Company’s Q1 2019 earnings call. Also, note there has been 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. The Ishares Nasdaq Biotechnology ETF (IBB) dropped 1.36% closing at $107.74. This sector has been on a more than healthy run over the last 30 days. The 52-wk range is $89.01 – 122.97. Adverum Biotechnologies, Inc. (ADVM) jumped 22.53% into the close at $14.90 today just off its new 52-week high of $14.96 on 3.32 million shares of trading. Adverum, a clinical-stage gene therapy company targeting unmet medical needs in ocular and rare diseases announced that they will be presenting at a number of upcoming conferences.
Elsewhere on the recent IPO front, Zoom Video Communications (ZM) moved down by 1.22% closing at $90.76 & Uber Technologies (UBER), the ride-sharing company closed lower at $42.95/share down 1.33% & still below its recent IPO price of $45 but managed to establish a new all-time intraday high of $47.08 earlier last week. Plant-based burger maker Beyond Meat (BYND) closed at $156.67 adding 2.65%. 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 last week flying up 48.5% from their offering price of $26/share closed today at $35.00 off 1.46% on the day. 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.
The US markets are back to normal this week Monday through Friday. We will be receiving the FOMC meeting minutes on Wednesday & then the inflation report on Thursday.
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