Shares of Tech Data (TECD) lept +12.32% today closing at $144.89/share. Private equity firm Apollo Global Management agreed to pay $145/share for TECD on Wednesday, up from its original bid of $130/share of Warren Buffett’s Berkshire bid of $140/share from last week. TECD operates as an IT distribution and solutions company. The company offers endpoint portfolio solutions, including personal computer systems, mobile phones and accessories, printers, peripherals, supplies, endpoint technology software, and consumer electronics. It also provides advanced portfolio solutions, such as data center technologies comprising storage, networking, servers, advanced technology software, and converged and hyper-converged infrastructure, as well as specialized solutions.
The broad markets took it on the chin today this last day of trading in November. Trading volume was reported to be off significantly on this holiday-shortened trading week. The Dow closed up -112.59 points -40% closing at 28,051.41. The S&P 500 ended today’s session -12.65 points or -.40% as it closed at 3,140.98. All 11 S&P 500 sectors closed in negative territory with energy ending down -1%. The Nasdaq closed at 8,665.47, -39.7 points, -.46%. The Russell 2000, the small-cap stock market index representing the bottom 2,000 stocks in the Russell 3000 Index also dropped today ending the day -.59%%, -9.6 points at 1,624.50.
The U.S. Dollar Index strengthened ending at 98.40. The 2-yr Treasury yield closed at 1.62% up 3 basis points & the 10-yr yield finished up 3 basis points at 1.77% today.
Oil prices closed at $55.17/bbl, -5.06%. Chevron (CVX) closed at $117.13/share,-.8%, Exxon (XOM) closed at $68.13/share, -.83%. 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 $38.57/share -.46%.
Gold prices closed up at $1,465/oz%. Silver closed at $17/oz. Hecla Mining Company (HL) closed at $2.47/share +3.35% 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 lower at $10.76/share off +1.89% after recently reporting their Q3 2019 earnings 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 results finished up to today. The CBOE Volatility Index (VIX) closed at $12.62/share 7.4% or +$.87/share. The 2x leveraged ETF (TVIX) closed at $6.25/share +3.48% or +.21/share and traded tightly between $6.10 and $6.29 today.
- On Monday, we did not receive any points of significance.
- On Tuesday, a number of economic points surfaced. We received the new home sales report for October which showed a drop of -.7% month/month to a seasonally adjusted annual rate of 733k units while on a year/year basis the new home sales report showed an increase of +31.6%. The Conference Board’s Consumer Confidence Index report for November decreased to 125.5 from 125.9 in October. The Advance International Trade in Goods report for October confirmed a tightening od the deficit to $66.5B from $70.5B in September. The Advance Retail Inventories report showed that it increased were by +.3%. The Advance Wholesale Inventories report in October showed a rise of +.2%. The FHFA Housing Price Index for September jumped +.6%. The S&P Case-Shiller Housing Price Index for September rose +2.1%.
- On Wednesday, we received a number of key data points prior to the Thanksgiving holiday.
- The personal income report showed no movement month/month in October
- The personal spending reported confirmed a rise of +.3%.
- The PCE Price Index report increased +.2% while the core PCE Price Index rose +.1%.
- The durable goods orders report went up +.6% in October.
- The Initial claims report for the week ending Nov. 23 confirmed that it went down by 15k to 213k while continuing claims for the week ending Nov. 16 decreased by 57k to 1.64M.
- The 2nd estimate for Q2 GDP showed a +2.1% jump on an annualized basis.
- The GDP Price Deflator increased +1.8%.
- The Chicago PMI came in at 46.3 up from the 43.2 reading in October.
- Pending Home Sales went down -1.7% in October.
- The MBA Mortgage Applications Index report moved higher by +1.5%.
- The Fed’s Beige Book for December confirmed that economic activity was marginally changed from the prior reporting period.
- On Thursday & Friday, we did not receive any significant economic data.
The S&P 500 healthcare sector closed at 1148.69, -4.04%. UnitedHealth Group (UNH) closed at $279.87/share, -.29% after a recent Q3 earnings beat on 10/15/19 & Walgreens Boots Alliance (WBA) closed at $59.60/share, -.85%. 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 $29.49, -.94%) is preparing a buyout plan. Cigna (CI) closed at $199.92/share, -.05%.
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. Shares of IVOB closed today at $.24/share.
The Ishares Nasdaq Biotechnology ETF (IBB) moved up +.22% closing at $119.65 & the NYSE Arca Biotech Index (^BTK) closed at 4,999.97, -.26%.
Johnson & Johnson (JNJ) closed at $137.49/share, -.19%, Merck & Co (MRK) closed at $87.18/share, -.49%, Pfizer (PFE) closed at $38.52/share, -.28%. 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 $1.37/share, +2.62%. 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 $267.25/share, -.22% as optimism continues to grow with regard to the new iPhone models and new streaming entertainment offering, Alphabet (GOOG) closed at $1,304.96/share, -.61%, Facebook (FB) closed at $201.64/share, -.18%, Microsoft (MSFT) closed at $152.38/share -.62%, NVIDIA (NVDA) closed at $216.74/share, -.69% 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 $134.45/share, +.51% as it recently missed wall street Q3 expectations. Cisco Systems (CSCO) was up -.15% finishing at $45.24/share after reporting results this week that missed expectations & lowered guidance. Goldman Sachs (GS) ($222.95/share, +.22%) recently downgraded CSCO as it views that corporate spending on technology has weakened.
Disney (DIS) closed at $151.48/share, -.11%. Recently Disney beat quarterly expectations & 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) ($60.10/share, +.35%) 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 $315.93/share, +1.1%. Recently rumors surfaced that either/or both Carl Icahn & Bill Ackman have accumulated a large position in NFLX. Amazon (AMZN) closed at $1,818.51/share, +1.2%.
Streaming device maker Roku (ROKU) closed at $161.64/share, -1.61% 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 $368/share, -1.48% after the FAA recently confirmed that it will take control in re-certifying the airworthiness of each individual 737 MAX plane.