“Tech, Biotech Lead” Vista Partners Daily Market Recap 6/17/19

By John Heerdink LinkedIn

Overall the markets were up today as it waited for the FOMC to begin its 2-day meeting tomorrow. Attention is once again pointed towards their decision to lower or delay the lowering of interest rates. Consensus still has it that we will not see a rate cut this week but we instead continue to receive their views that they will be there if they are needed to cut rates and that this action could happen still this year.

The S&P 500 ended the session .09% at 2889.67. The Dow gained 22.92 points closing up .09% at 26,112.53, However, the Russell 2000, the small-cap stock market index of the bottom 2,000 stocks, & the tech-heavy Nasdaq led the charge as tech & biotech stocks charge forward toward today. The Russell moved up .67% adding 10.25 points to close at 1532.75 & Nasdaq jumped .62% closing at 7845.02 up 48.37 points.

Big tech stocks were led higher overall by the likes of  Amazon (AMZN) which gained .88% closing at 1,886.03,  Alphabet (GOOG) was up .66% closing at 1,092.50, Apple (AAPL) grabbed .60% closing at $193.89 up $1.15/share & Facebook (FB) jumped another 4.24% closing at $189.01. Shares of Microsoft (MSFT) bumped up .30% closing at $132.85. The high-flying recent IPO Zoom Video Communications (ZM) lost 2.17% closing at $98.11 &  Uber Technologies (UBER), the ride-sharing company climbed 1.27% closing at $43.78/share but still below its recent IPO price of $45. Intel (INTC) slid .13% closing at $46.13/share.

As for a healthcare/biotech sector today In the biotechnology sector, we saw the Ishares Nasdaq Biotechnology ETF (IBB) jump 2.96% closing at $106.10.

Pfizer (PFE) closed up .28% at $42.88 after announcing their acquisition of Array BioPharma (ARRY) for ~$11.4 billion or $48/share in cash which closed at $46.44 up 56.94%. The pharmaceutical giant and Dow component Merck & Co, Inc. (MRK) that recently announced the acquisition of Tilos Therapeutics for consideration of up to $773 million closed at $83.30 up .63%.

Community Health Systems, Inc. (CYH) one of the largest publicly traded hospital companies in the US hit an intraday high of $2.72/share & a low of $2.51 today and closed the day at $2.70 up 3.85% on 1.96 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 $2.07/share as it traded as high as $2.1242. The average daily trading volume is 1.3 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.” Atossa will be presenting at two Tribe Public events in Logan and Salt Lake City, UT tonight June 17th and then on Tuesday, June 18th respectively to a crowd of investors from family offices, Accredited investors, portfolio managers, and registered investment advisors.

San Diego-based biotech Fate Therapeutics (NASDAQ: FATE), dedicated to the development of programmed cellular immunotherapies for cancer and immune disorders,  closed at $19.12/share up 7.24% on 833,458 shares of trading after establishing a new all-time intraday high of $19.28. 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 $4.35 up .46% on 388,053 shares of trading.

Xeris Pharmacueticals, Inc. (XERS) closed at $10.42 up 8.43% on top of its sizable moves recently upward. 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 $.3854/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 flat today ending the day at 97.57.

The 2-yr treasury yield ended up at 1.85%  & the 10-year Treasury note closed flat at 2.09%.

Volatility bets closed lower today. The CBOE Volatility Index (VIX) closed at $15.35 & up .46%. It traded between $15.24 – $15.76. The 2x leverage ETF TVIX also closed lower at $20.45 down 2.39% and traded between $20.29 and $20.99 today.

Oil prices dropped 1.5% closing at $51.76/bbl.  Dow 30 energy participants Chevron (CVX) moved higher by .48% closing at $121.39 & Exxon (XOM) closed at $75.09 up a solid 1%.

Entertainment giant Disney (DIS) slowed things down today after a nearly 5% move yesterday $141.65 off .06%. The previous day’s move came in after a Morgan Stanley analyst and a slew of others came our speculating that Disney’s new streaming service Disney + will be stronger than expected.

Institutional alternative asset manager Och-Ziff Capital Management Group (OZM) continued its recent winning ways on Friday as it closed at $22.18 up 1.14% after hitting $23.00 in intraday trading which just happens to be the 52-week high. The 52-wk range is $8.60 – $23. OZM sports a healthy 5.65% cash dividend.

In the large company tech world,  Amazon (AMZN) lost .03% closing at 1,869.67,  Alphabet (GOOG) was down .31% closing at 1,085.35, Apple (AAPL) lost .73% closing at $192.74 & Facebook (FB) jumped another 2.18% closing at $181.33. Shares of Microsoft (MSFT) bumped up .10% closing at $132.45. Zoom Video Communications (ZM) lost .65% closing at $100.29 &  Uber Technologies (UBER), the ride-sharing company dropped 2.44% after yesterday’s 5.07% bounce closing at $43.23/share but still below its recent IPO price of $45.

Home Depot (HD) roses another 1.69% ending the week at $205.77.

Dow 30 component & the world’s leading manufacturer of construction & mining equipment Caterpillar (CAT) closed at $127.23 up .05%.

McDonald’s (MCD) closed at $205.29 up .39%.   Plant-based burger maker Beyond Meat (BYND) closed at $151.48 gaining a whopping 7.14%. 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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