According to a plethora of sources, today Charles (“Chuck”) Schwab (SCHW) is making a move to combine with rival brokerage firm TD Ameritrade (AMTD), a deal that could be worth more than $25B. It would also create a new behemoth company in the brokerage space with over $5T in combined client assets. With this new era of $0 commissions which has followed a downward trend since the onset of electronic trading (2000) which squashed the commission schedule, we continue to see the consolidation of the brokerage industry pick up speed. SCHW moved up +7.33% closing at $48.03/share & AMTD jumped +16.92% closing at $48.38/share.
The broad markets were overall dragged down again today with continued uncertainty around the US-China Trade Wars being the main culprit, but most assuredly this is sentiment is being paired with many that are harvesting profits as markets are near all-time highs and the year is nearly over. The Dow closed down -54.80 points -.20% closing at 27,766.29. The S&P 500 ended today’s session -4.92 points or -.16% as it closed at 3,103.54. The S&P 500 energy sector (+1.6%) sector led the way again today as OPEC speaking of cutting production again while the the real estate sector (-1.4%) dragged the index down along with 7 other sectors. The Nasdaq closed at 8,506.21 -20.52 points -.24%. The Russell 2000, the small-cap stock market index representing the bottom 2,000 stocks in the Russell 3000 Index was also dropped ending the day -.48% -7.65 points at 1,583.96.
The U.S. Dollar Index strengthened ending at 97.98. The 2-yr Treasury yield closed at 1.61% & the 10-yr yield finished at 1.77% today respectively up 4 and 3 basis points.
Oil prices closed at $56.58/bbl, +2.9%. Chevron (CVX) closed at $118.77/share +1.33%, Exxon (XOM) closed at $69.67/share +2.41%. Chevron reported earnings recently of $.75, beating estimates of $.681 per share. Exxon Mobil (XOM) reported earnings recently of $1.36, missing estimates of $1.564 per share. Occidental Petroleum (OXY) closed at $39.12/share +1.66%.
Gold prices closed up at $1,464.40/oz +.03%. Silver closed at $17.07/oz. Hecla Mining Company (HL) closed at $2.37/share -3.95% after reporting its Q3 2019 earnings Thursday Nov. 7th, which highlighted their Adjusted EBITDA of $69.8 million, approximately 40% lower cash cost per silver ounce and all-in sustaining cost (“AISC”) per silver ounce, in each case net of by-product credits compared to the third quarter of 2018, free cash flow of $28.8 million generated and a tentative agreement for their Lucky Friday Mine. (See complete story). Post the quarter BMO upgraded HL to a market perform. First Majestic Silver (AG) closed higher at $10.51/share -4.11% after reporting their Q3 2019 earnings last week where their CEO Keith Neumeyer highlighted that they added $21.4M to their treasury during the quarter as a result of strong production from San Dimas and Santa Elana mines.
Volatility bets results were mixed today. The CBOE Volatility Index (VIX) closed at $12.78/share -.62% or -$.08/share. The 2x leveraged ETF (TVIX) closed at $7.39/share +2.07% or +$.15/share and traded tightly between $7.10 and $7.89 today.
- On Monday, the NAHB Housing Market Index report for November showed that it had lowered to 70 from the 71 levels it had achieved in October.
- On Tuesday, the total housing starts report confirmed an increase of +3.8% month/month to a seasonally adjusted annual rate of 1.314M. The total building permits report also rose 5% month/month to a seasonally adjusted annual rate of 1.461M.
- On Wednesday, the weekly MBA Mortgage Applications Index report confirmed a move down by -2.2%.
- On Thursday, the initial claims report for the week ending November 16 came in flat at 227k, while continuing claims report for the week ending November 9 moved up 3k to 1.695M. The existing home sales report showed an increase of 1.9% m/m in October to a seasonally-adjusted annual rate of 5.46M, while total sales rose +4.6% over the same period a year ago. The Conference Board’s Leading Economic Index (LEI) report decreased -.1% in October. The Philadelphia Fed Index for November jumped to 10.4 from the 5.6 in October.
The S&P 500 healthcare sector closed at 1131.35 +.22%. UnitedHealth Group (UNH) closed at $276.55/share +.36% after a recent Q3 earnings beat on 10/15/19 & Walgreens Boots Alliance (WBA) closed at $60.62/share -1.17%. Walgreens reported earnings on 10/28/2019 of $1.43/share, missing estimates calling for $1.451 per share. Recently reports surfaced that publicly traded private equity firm KKR (KKR $29.06 -.85%) is preparing a buyout plan. Cigna (CI) closed at $1201.21/share, +.65.
INVO Bioscience, Inc. (IVOB), a medical device company focused on creating alternative treatments for patients diagnosed with infertility and developers of INVOcell®, the world’s only in vivo Intravaginal Culture System (pictured above), recently announced that it has entered into commercialization agreements in the continent of Africa, covering Nigeria, Uganda, Sudan, and Ethiopia, to distribute the revolutionary INVOcell system. The agreements represent INVO Bioscience’s initial entry into the highly populated infertility markets in Africa. According to research, approximately 31% of Nigerian couples fail to conceive a child after 12 months of unprotected sex—a rate at least as high as in the West. Across the continent, infertility is on the rise. Infertility comes with devastating social, cultural, emotional and economic consequences for young couples in Africa. However, access to assisted reproductive services remains a big challenge as traditional IVF treatment is limited in many areas of Africa. (READ complete story)
IVOB held a live investor webcast on Thursday, November 21, 2019, to discuss the results and provide investors an overview of the Company and its strategy. A webcast replay will be available for 90 days in the Investor Relations section of the Company’s website at https://invobioscience.com/investors/.
The Ishares Nasdaq Biotechnology ETF (IBB) moved +.3% closing at $114.30 & the NYSE Arca Biotech Index (^BTK) closed at 4,795.95, +.41%.
Johnson & Johnson (JNJ) closed at $136.44/share, +.37%, Merck & Co (MRK) closed at $85.46/share, +.22%, Pfizer (PFE) closed at $37.74/share, +1.86%. Merck (MRK) reported earnings on 10/29/2019 of $1.51, beating estimates of $1.28 per share. Pfizer (PFE) reported earnings on 10/29/2019 of $.75, beating estimates of $.644 per share.
Atossa Genetics (ATOS) closed trading at $1.35/share, +8%. Recently, 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.” READ the complete story here.
This week, Atossa announced financial results for the third quarter ended September 30, 2019, and provided an update on recent company developments. Steven C. Quay, M.D., Ph.D., Atossa Genetics’ President, and CEO commented, “In the third quarter we made substantial headway in advancing the development of our lead drug candidate – Endoxifen – as we turn our concentration towards treating mammographic breast density (MBD). We recently announced meeting all objectives in our Phase 1 study of the modified-release tablet form of oral Endoxifen, which paves the way toward advancing our modified-release tablet into Phase 2 studies. The final analysis of the results demonstrated that the modified-release tablet had no treatment-related side effects that were rated as moderate or severe in intensity, strongly supporting the continued development of this proprietary formulation. We also initiated our Phase 2 clinical study of Atossa’s intraductal technology for the administration of fulvestrant in patients with early-stage breast cancer with a major institution and supported by the Dr. Susan Love Research Foundation. Many of the approximately 64,000 women with ductal carcinoma in situ (DCIS) who opt for ‘watchful waiting’ rather than extensive surgery could benefit from a gentler, intermediate treatment of DCIS with intraductal ablation with fulverstrant. Before the end of the year, we look forward to reporting several significant milestones: contracting with a clinical research organization for our Phase 2 study of oral Endoxifen to treat MBD, completing additional pre-clinical work of our cell-based therapy candidate and our intraductal technology, as well as reporting additional results from our recently completed clinical study of our modified-release form of Endoxifen tablets.” Read Complete Story.
Tech, Entertainment & Beyond
Apple (AAPL) closed at $262.01/share, -.45% as optimism continues to grow with regard to the new iPhone models and new streaming entertainment offering, Alphabet (GOOG) closed at $1301.35/share, -.13%, Facebook (FB) closed at $197.93/share, +.21%, Microsoft (MSFT) closed at $149.48/share -.09%, NVIDIA (NVDA) closed at $210.18/share, -.47% and recently reported Q3 results beating Wall Street’s Q3 expectations however they did not meet on their forward-looking outlook views. IBM closed at $133.84/share +.48% as it recently missed wall street Q3 expectations. Cisco Systems (CSCO) was down -.53% finishing at $44.84/share after reporting results this week that missed expectations & lowered guidance. Goldman Sachs (GS) ($218.231/share +.15%) recently downgraded CSCO as it views that corporate spending on technology has weakened.
Disney (DIS) closed at $146.90/share -.02% after beating quarterly expectations this week & announcing that they already have more than 10 million Disney+ subscribers which also beat analysts’ expectations of 8 million subscribers by the end of 2019.
Verizon (VZ) ($59.61/share, +.22%) recently announced that it will be giving the streaming service Disney+ to all new customers of Verizon for a year, and Netflix (NFLX) closed at $311.69/share, +2.14%. Recently rumors surfaced that either/or both Carl Icahn & Bill Ackman have accumulated a large position in NFLX. Amazon (AMZN) closed at $1,734.71/share, -.41%.
Streaming device maker Roku (ROKU) closed at $155.91/share, -1.90% after they recently reported earnings beating both top and bottom Wall Street expectations, but also reducing its profitability outlook for 2019 as a whole, adjusting it from $30M from $35M reflecting continued investing in the business and Q4 dataxu operations and acquisition expenses. The dataxu acquisition was announced to have been completed recently.
Boeing (BA) closed at $366.44/share -1.21% after their CEO’s recent testimony to the Senate and today’s new reported understanding that the 737 Max return is closer than thought.