“Taco Tuesday” Vista Partners Daily Market Recap 6/18/19

By John Heerdink LinkedIn

It was a  “Taco Tuesday special” kind of day for those involved in the markets today as as we continue to wait for the Fed to announce their much-anticipated interest rate decision tomorrow.  In other words the markets charged upward and it tasted good. The S&P 500 ended the session .98% at 2917.75. The Dow gained a whopping 353.01 points closing up 1.35% at 26,465.54 near the all-time high of 26,527.19 and seems like it wants to reach 27k. The Russell 2000, the small-cap stock market index of the bottom 2,000 stocks, & the tech-heavy Nasdaq also moved up  1.14% adding 17.48 points to close at 1550.23 & the Nasdaq jumped 1.39% closing at 7953.88 up 108.86 points and getting nearer towards its all-time of 8176.08.

Why did the markets charge forward today? Many are pointing to a pair of positive movements relating to Europe and the other with relation to the US-China trade wars. First ECB President Mario Draghi claimed that the central bank will provide “additional stimulus” if the economic environment and inflation numbers in Europe do not see meaningful improvement. Then President Trump surprised all with a social media post (twitter) that he expected to restart talks with China prior to the upcoming G20 Summit and went on to state that they are now due to have an extended visit with China at the G-20 Summit and specifically with President Xi.

Big tech stocks moved higher as Amazon (AMZN) which gained .81% closing at 1,901.37,  Alphabet (GOOG) was up 1.02% closing at 1,103.60, Apple (AAPL) jumped 1.35% closing at $198.45 up $4.65/share, however, Facebook (FB) dropped a.29% closing at $188.47 after announcing its plans to launch a cryptocurrency. Shares of Microsoft (MSFT) moved higher by 1.74% closing at $135.16 & Intel (INTC) flew up 2.69% closing at $47.376.13/share.. The high-flying recent IPO Zoom Video Communications (ZM) got back to its winning ways and moved higher by 1.56% closing at $99.64 &  Uber Technologies (UBER), the ride-sharing company bumped up .18% closing at $43.86/share but still below its recent IPO price of $45.

As for a healthcare/biotech sector today In the biotechnology sector, we saw the Ishares Nasdaq Biotechnology ETF (IBB) move up again by 1.38% closing at $107.56.

Pfizer (PFE) closed up .44% at $42.88 after yesterday’s announcement of their acquisition of Array BioPharma (ARRY) for ~$11.4 billion or $48/share in cash which closed at $46.58 up .3% after yesterday’s jump up 56.94%. 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 $84.49 up 1.43%.

Community Health Systems, Inc. (CYH) one of the largest publicly traded hospital companies in the US hit an intraday high of $2.77/share & a low of $2.58 today and closed the day at $2.59 down 4.07% on 1.94 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 $2.12/share up 2.42% after presenting to a full room of investors at a Salt Lake City Tribe Public Event. The average daily trading volume is 1.28 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 $20.20/share up 5.65% on 923,869 shares of trading after establishing a new all-time intraday high of $20.42. 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 $4.32 down .69% on 182,189 shares of trading.

Xeris Pharmacueticals, Inc. (XERS) closed at $10.55 up 1.25% on top of its recent sizable upward moves. 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 $.37/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 its INVOcell device is being featured in an in-vitro fertilization (IVF) exhibit at the Science Museum of London. The exhibition will be on display from April 4, 2019, to March 31, 2020, in the “Who Am I?” gallery.

The US Dollar Index was up .1% today ending the day at 97.62.

The 2-yr treasury yield ended down at 1.84%  & the 10-year Treasury note closed down at 2.06%.

Volatility bets closed lower today. The CBOE Volatility Index (VIX) closed at $15.15 & down  1.3%. It traded between $14.62 – $15.54. The 2x leverage ETF TVIX also closed lower at $20.14 down 1.52% and traded between $19.54 and $20.36 today.

Oil prices jumped 4.6% closing at $54.16/bbl.  Dow 30 energy participants Chevron (CVX) moved higher by 1.54% closing at $122.93 & Exxon (XOM) closed at $75.74 up a solid .87%.

Entertainment giant Disney (DIS) closed at $139.24 off  1.23%%. 

Institutional alternative asset manager Och-Ziff Capital Management Group (OZM) closed at $21.56 down 1.73%. The 52-wk range is $8.60 – $23. OZM sports a healthy 5.65% cash dividend.

Home Depot (HD) rose another .24% ending the day at $207.48.

Dow 30 component & the world’s leading manufacturer of construction & mining equipment Caterpillar (CAT) closed at $130.33 up 2.36%.

McDonald’s (MCD) closed at $204.51 up .34%.   Plant-based burger maker Beyond Meat (BYND) closed at $169.89 down .04%. Their meat is made of four main ingredients: water, pea protein isolate, canola oil & refined coconut oil and is meant to taste like “meat.”

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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