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“Thank You, Veterans!” Vista Partners Daily Market Recap 11/11/19

By John F. Heerdink, Jr.

Happy Veterans Day to all and thank you goes out to all veterans for their service!

Here’s a bit of a history lesson regarding Veterans Day which was originally known as Armistice Day. Veterans Day is a federal holiday in the United States observed annually on November 11, for honoring military veterans, that is, persons who have served in the United States Armed Forces and were discharged under conditions other than dishonorable. It coincides with other holidays including Armistice Day and Remembrance Day which are celebrated in other countries that mark the anniversary of the end of World War I. Major hostilities of World War I were formally ended at the 11th hour of the 11th day of the 11th month of 1918, when the Armistice with Germany went into effect. At the urging of major U.S. veteran organizations, Armistice Day was renamed Veterans Day in 1954. Veterans Day celebrates the service of all U.S. military veterans, while Memorial Day honors those who have died while in military service. There is another military holiday, Armed Forces Day, a U.S. remembrance that also occurs in May, which honors those currently serving in the U.S. military.

Today brought forth a day where many groups & organizations had the day off including government agencies, schools, and the bond markets, however, the stock markets were open for business as usual.  The markets unfortunately wore the “hangover jacket” that it was presented with over the weekend when President Trump rained on the US-China positive trade rhetoric that was bubbling at the end of last week when he refuted reports that the US was prepared to lift tariffs on China as a portion of the Phase one trade agreement that is apparently in works. News that Hong Kong demonstrations that were violent were also troubling the world and we started off the day in negative territory.

At the end of the day though the markets recovered for the most part. The S&P 500 ended today’s session -6.07 points or -.20% as it closed at 3,087.01. The utilities sector led the way down today as it was down -.7% & 8 of the eleven sectors were down today. The Dow, however, was up +10.25 points closing at 27,691.49 +.04% and closed at another record as Boeing (BA) (+4.55%) and Walgreens (WBA) (+5.08%) paced the index higher.  The tech-heavy Nasdaq Composite closed at 8,464.281 -.13 or -11.04 points. The Russell 2000, the small-cap stock market index representing the bottom 2,000 stocks in the Russell 3000 Index lost -4.9 points -.26% and it ended trading at 1,5994.77. The U.S. Dollar Index rose +.1% to end at 98.22.

The bond markets were closed today. The 2-yr Treasury yield closed at 1.66% & the 10-yr yield finished flat at 1.93% on Friday and the bond markets were closed today.

Oil prices ended down .6% today closing at $56.88/bbl. Chevron (CVX) closed at $120.81/share -.10%, Exxon (XOM) closed at $70.34/share -.61%. 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.

Gold prices closed up at $1,456.40/oz. Silver closed at $16.85/oz +$.07/oz. Hecla Mining Company (HL) closed at $2.44/share +5.63% 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). BMO upgraded HL Friday to a market perform. First Majestic Silver (AG) closed higher at $10.23/share +4.39% after reporting their Q3 2019 earnings last week where their CEO Keith Neumeyer highlighted that they added $21.4 M 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 $12.69/share +5.14% or +$.62/share. The 2x leveraged ETF (TVIX)  closed at $8.14/share -.61% or -$.05/share and traded between $7.97 and $8.54 today.

Economic Reports

Nothing reported today per the holiday but this was last week’s reports:

  • Monday offered the Factory Orders report for September that went down by -.6%.
  • On Tuesday, the ISM Non-Manufacturing Index for October moved higher to 54.7%. The U.S trade deficit trimmed in September to $52.5B. The September Job Openings & Labor Turnover Survey confirmed that job openings went down to 7.024M.
  • On Wednesday, the Nonfarm business sector labor productivity report showed that it had gone down -.3% in Q3. Unit labor costs rose +3.6%. The weekly MBA Mortgage Applications Index report decreased by -.1% w/w.
  • On Thursday, the initial jobless claims report for the week ending November 2nd confirmed that claims have gone down by 8k to 211k, while continuing jobless claims for the week ending October 26 fell by 3k to 1.689M. The Consumer Credit report for September confirmed a rise of $9.5B and that August credit growth remains at $17.9B.
  • On Friday, the preliminary University of Michigan Consumer Sentiment Index for November came in better than expected at 95.7. The wholesale inventories report showed a move down by -.4% month/month in September.

Big Movers

NextCure, Inc. (NXTC) closed down 52.93% today at $39.22 after last week’s gigantic move to $109/share up that had seen this level coming from the $25/share level one day. We called the drop as it moved up on what we believed was a short squeeze/tight float situation that was not going to be met with increased fundamental value to support the $2 billion-plus valuation that had resulted.

On the positive side of things, Constellation Pharmaceuticals, Inc. (CNST) moved another +11.23% higher to close at $34.38/share after its recent ~+100% move last week when they reported promising data from a mid-stage clinical trial for myelofibrosis.


The S&P 500 healthcare sector closed at 1095.63 -.41%. UnitedHealth Group (UNH) closed at $254.09/share -1.12% after a recent Q3 earnings beat on 10/15/19 & Walgreens Boots Alliance (WBA) closed at $62.25/share +5.08%. Walgreens reported earnings on 10/28/2019 of $1.43/share, missing estimates calling for $1.451 per share, and is reportedly considering a take-private initiative with private equity firms. Today reports surfaced that KKR (KKR $29.26 +.11%) is preparing a buyout plan. Cigna (CI) closed -1.04% closing at $187.16/share.

Worldwide, the fertility treatment market is severely underserved. Currently, only 1% to 2% of the 150 million infertile couples worldwide are treated, with the primary prohibiting factor being cost and access to treatment. INVO Bioscience’s (IVOB) INVOcell system is a novel fertility treatment that uses a woman’s own body as a natural incubator for the incubation of eggs and sperm during fertilization and early embryo development. This cost-effective process has shown comparable pregnancy rates to IVF and in their opinion has the ability to significantly increase patient access. The INVOcell system can eliminate the need for costly infrastructure and overhead associated with IVF, one of the primary hindering factors to fertility treatment in many areas of the continent. Additionally, INVO Bioscience believes the unique in vivo fertilization process is a powerful motivator for many patients and in their opinion the only acceptable option available to some patients for religious and cultural reasons.

Recently, 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), today 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)

The African commercialization agreements seem to further support INVO Bioscience’s planned worldwide expansion of INVOcell and follow the recent agreement with Ferring Pharmaceuticals to distribute INVOcell in the United States.INVO Bioscience has entered into distribution agreements with G-Systems covering Nigeria, and Quality Medicine covering Uganda, Sudan, and Ethiopia. Following standard administrative requirements by each company to begin supplying INVOcell in the country, the Company believes distribution will commence in 2020. Each agreement includes minimum annual purchase requirements. Full terms of the agreement were not disclosed.

To learn more about INVO Bioscience (IVOB) and to track its progress daily, please visit the INVO Bioscience Dedicated Research Page by clicking here.

IVOB closed trading at $.3125/share. The 52-wk range is $.25 – $.63.


The Ishares Nasdaq Biotechnology ETF (IBB) moved -.29% closing at $110.04 & the NYSE Arca Biotech Index (^BTK) closed at 4,547.86 -.76%.

Johnson & Johnson (JNJ) closed at $131.98/share -.77%, Merck & Co (MRK) closed at $83.28/share -.37%, Pfizer (PFE) closed at $36.93/share -.32%. 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 $1.41/share. 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.

Tech & Entertainment

Apple (AAPL) closed at $262.20/share +.79% as optimism continues to grow with regard to the new iPhone models and new streaming entertainment offering, Alphabet (GOOG) closed at $13299.19/share -.93%, Facebook (FB) closed at $189.61/share -.64%, Microsoft (MSFT) closed at $146.11/share +.10%, NVIDIA (NVDA) closed at $208.18/share +.19%. Bank of America/Merrill Lynch recently raised its NVDA price target to $250 from $225. IBM closed at $135.47/share -1.56% as it recently missed wall street Q3 expectations while Cisco Systems (CSCO) lost -.1.49% finishing at $48.10/share. Goldman Sachs (GS) ($219.03/share -1.74%) recently downgraded CSCO as it views that corporate spending on technology has weakened.

Disney (DIS) closed at $136.74/share -% as it recently announced that it was teaming with Verizon (VZ) ($59.35/share, -1.95%) and its new streaming service Disney+ will now be given to all new customers of Verizon for a year, and Netflix (NFLX) closed at $291.57/share +.69%. Amazon (AMZN) closed at $1,785.88/share -.13%. Disney (DIS) recently reported earnings for its fourth quarter and fiscal year ended September 28, 2019. Diluted earnings per share (EPS) from continuing operations for the fourth quarter decreased by 72% to $0.43 from $1.55 in the prior-year quarter. Excluding certain items affecting comparability(1), diluted EPS for the quarter decreased by 28% to $1.07 from $1.48 in the prior-year quarter. Diluted EPS from continuing operations for the year decreased by 25% to $6.27 from $8.36 in the prior year. Excluding certain items affecting comparability(1), diluted EPS from continuing operations for the year decreased by 19% to $5.77 from $7.08 in the prior year.

Streaming device maker Roku (ROKU) closed at $121.21/share +5.96% today 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 today.

Boeing (BA) closed at $366.96/share +4.55% after their CEO’s recent testimony to the Senate and today’s new reported understanding that the 737 Max return is closer than thought.

Later This Week

Cisco (CSCO) reports earnings on 11/13/2019 after the market close & Walmart (WMT) reports earnings on 11/14/2019 before the market open.

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