“The Wait” Vista Partners Daily Market Recap 7/29/19

By John Heerdink LinkedIn

The markets were a bit uncommitted & mixed today as it lays in wait for the FOMC decision on Wednesday, July 31. The markets also needed to collect itself in the so-called summer doldrums after establishing all-time highs last week. Let’s not for a minute forget that we also have the trade talks between the US & China this week looming. So for today’s trading session Monday brought forth the S&P 500 giving back 4.89 points or .16% to end the session at 3,020.97. The Dow closed at 27,221.35 up .11% adding 28.90.47 points. The tech-heavy Nasdaq closed at 8,293.33, down 44% losing 36.88 points. The Russell 2000, the small-cap stock market index representing the bottom 2,000 stocks in the Russell 3000 Index, also moved down .63% closing at 1,569.03 dropping 9.94 points. 

The U.S. Dollar Index was flat closing at 98.04. Volatility bets were on the same page again today as they moved higher and they currently seem to be on a yoyo as every other day seems to a trend from higher to almost equal lower movements. The CBOE Volatility Index (VIX) closed higher at $12.83 up 5.51% or $.67/share. The 2x leveraged ETF TVIX also closed higher at $13.15 up 1.7% or $.22/share and traded tightly between $12.89 and $13.33 today.

The 2-yr treasury yield closed at 1.84% up .03%, and the 10-yr treasury yield climbed to 2.06% equally up .03%.

Oil prices added a solid 1.2% move higher closing at $56.87/bbl.  Dow 30 energy participants Chevron (CVX) moved higher by .41% closing at $124.23/share & Exxon (XOM) closed higher by .71% closing at $75.34/share.  Occidental Petroleum (OXY) closed at $50.91/share dropping 1.32%.

Gold closed at $1420.62/oz. Silver closed at $16.50/oz. Hecla Mining Company (HL) closed at $1.91 up 1.91% and is due to report earnings before the market opens on Aug. 7th. First Majestic Silver (AG) closed at $9.98/share up 1.63% after its sizable recent move.

Tech

Big tech stocks results were mostly negative today, however, Apple (AAPL) closed higher up by .93% at $209.68/share. Facebook (FB) closed lower at $195.94/share off .1.91% Alphabet (GOOG) closing at $1239.41/share down .88% today. Shares of Microsoft (MSFT) closed trading at $141.03/share down .82%.  Micron (MU) gave back 1.41% closing at $46.82/share & Intel (INTC) closed at $52.51/share up 1.78%.

Twitter (TWTR) closed at $41.50 down .05%. Netflix (NFLX) moved lower down a .92% ending at $332.70/share halting last week’s multi-day reversal. NYC-based Yext (YEXT), an innovator in search giving customers control over their business information across the digital landscape, closed at $21.06/share down sharply 5.73% after its recent three-day run-up. Yext has seen a 52-wk trading range of $12.90 – $27.19. 3M.  (MMM) beat earnings expectations last Thursday and closed at $176.76/share rising 1.60%.

Financials/Money management

It was not a good day across the board again for the financial-related stocks. Goldman Sachs (GS) closed at $220.32 down .82%. JPMorgan Chase (JPM) closed at $115.85 down .32%. Wells Fargo (WFC) closed at $48.28 down strongly by 2.07%. Morgan Stanley (MS) closed at $45.23 down 1.12%, & Bank of America (BAC) closed at $30.52 down .81%. Visa (V) closed at $183.21/share down .26%.

Institutional alternative asset manager Och-Ziff Capital Management Group (OZM) closed at $23.74/share down 1.78% or $.43/share closing off its newly minted 52-wk high of $25.49. The 52-wk range is $8.60 – $25.49. OZM sports a 4.14% cash dividend. OZM reports on Thursday, August 1st.

Los Angeles-based Colony Capital (CLNY) a leading global investment management firm with assets under management of $43 billion had a interesting last few days as it announced last Thursday that it had acquired Digital Bridge Holdings LLC (“Digital Bridge”) for $325 million as part of Colony’s strategic evolution into the leading owner and investment manager of assets, businesses, and investment management products in which the digital and real estate frontiers intersect. The Digital Bridge acquisition follows the May 2019 final closing of Digital Colony Partners, a $4.05 billion fund sponsored by Colony and Digital Bridge. Digital Colony Partners is dedicated to global opportunities in digital infrastructure and is the largest first-time institutional fund of this type. This transaction seems to be bringing the world-class team of Digital Bridge investment professionals and management of the Digital Bridge portfolio of high performing assets under the Colony franchise. This acquisition continues Colony’s strategy of building leading investment management platforms, adding a powerful focus on assets and businesses that benefit from the increasingly digital world, including communications infrastructure, quant-driven listed securities products, artificial intelligence, digital credit products, smart logistics industrial, private equity and emerging markets infrastructure and growth equity strategies. Digital Bridge manages nearly $20 billion of digital infrastructure globally, directly and through Digital Colony Partners, and pro forma for Digital Colony Partners’ pending Zayo Group Holdings, Inc. transaction. Combining this portfolio with Colony’s footprint, the merged firm will manage approximately $60 billion of assets. The Company believes this concentration on digital infrastructure and related, digitally-driven investment management businesses will be a highly compelling strategy to generate substantial and sustainable value for shareholders and is very complementary to recent initiatives in other growth areas such as emerging markets, energy, and listed securities, often with a “new economy” emphasis. The combination of the two companies also paves the way for Colony’s leadership succession plans, which will be implemented over approximately 18 to 24 months. Following a transition period, Marc C. Ganzi, a founder and Chief Executive Officer of Digital Bridge, and a Managing Partner and an Investment Committee Member at Digital Colony, will become the CEO of Colony, succeeding Thomas J. Barrack, Jr., who will return to the position of Executive Chairman. Mr. Ganzi will focus with Mr. Barrack and the Colony board and executive team to continue Colony’s strategic plan of selling non-core assets, reducing G&A, growing investment management, generating liquidity and de-risking, and maintaining REIT status and a dividend – the further details of which will be announced before year-end. Read Complete Story.  CLNY shares closed at $5.73/share up 1.24% after hitting an intraday high of $5.78. CLNY pays a 7.77% cash dividend. The 52-wk range is $4.55 – $6.28. CLNY reports earnings on Friday, Aug. 9th

Consumer Goods & Entertainment

The Home Depot (HD) closed at $218.04/share up .52%.

The Walt Disney Company (DIS) closed trading up 1.20% at $146.39/share.

Nike (NKE) closed up .09% at $87.62/share. Nike recently missed analyst earnings estimates but maintained full-year guidance.

McDonald’s (MCD) closed at $214.98 closing off .28%.

Walmart (WMT) closed at $112.27 losing .66%.

Healthcare

The healthcare sector moved had a good day today. The S&P 500 healthcare sector closed at 1069.15 rising .41%. UnitedHealth (UNH) closed higher up .35% closing at $253.82/share, Walgreens Boots Alliance (WBA) closed at $55.12/share up .13% & Cigna (CI) climbed an ample 2.95% closing at $172.24/share.

Johnson & Johnson (JNJ) recenty reported earnings beating analyst expectations as they confirmed a +40% increase in Q2 net income year over year. JNJ shares closed at $133.02/share up 1.75% but continue to deal with the overhang of the opioid & mesothelioma related issues.

INVO Bioscience, Inc. (IVOB) ended the day at $.3599/share as daily trading volume continues to rise in concert with their announcing progress after their exclusive U.S. partnership with Ferring Pharmaceuticals, a leader in the reproductive health industry was announced in Q1-2019. Ferring has committed to providing the necessary sales and marketing resources to more fully develop the market in the United States. There are countless couples not able to receive reproductive treatments today, and Ferring can be instrumental in addressing the unmet needs of this cohort. Ferring has the industry experience, relationships and the marketing capabilities to successfully embed the INVOcell in clinics throughout the country.  IVOB is a medical device company, headquartered in Sarasota, FL 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 also announced last week news of their recent appointment of Pressly Ahammed as the new Director of International Business Development and he will be responsible for the Company’s international distribution channels in Europe, Middle East, Africa & parts of Asia. Ahammed joined IVOB from Cooper Surgical where he held a similar position. See complete story.

Corindus Vascular Robotics, Inc. (NYSE American: CVRS), a leading developer of precision vascular robotics, announced recently that Albert Einstein Jewish Hospital (Hospital Israelita Albert Einstein) in São Paulo, Brazil has become the first hospital in the Southern Hemisphere to implement Corindus’ CorPath GRX System. Ranked as the best hospital in Latin America for 10 years in a row, Albert Einstein Jewish Hospital will continue to uphold its standing by leveraging the Company’s technology in its health system’s leading research facilities. The Company’s CorPath® platform is the first FDA-cleared medical device to bring robotic precision to percutaneous coronary and vascular procedures. CorPath GRX is the second generation robotic-assisted technology offering enhancements to the platform by adding important key upgrades that increase precision, improve workflow, and extend the capabilities and range of procedures that can be performed robotically. For additional information, visit www.corindus.com CVRS shares closed at $2.69/share down 1.82% after hitting an intraday high of $2.739 and a low of $2.59 and the 52-week trading range is $.78- $3.49/share. Corindus is due to report earnings before the open on Thursday, Aug. 8th.

Biotech

The Ishares Nasdaq Biotechnology ETF (IBB) gained .09% closing at $105.41. This sector has been on a more than healthy run over the last 30 days. The 52-wk range is $89.01 – $122.97.

Pfizer (PFE) had a big day but closed lower at $41.45/share down 3.81%. They dually announced Q2 earnings and beat analyst expectations while simultaneously shared that they will be merging its generic drug business Upjohn with Mylan (MYL) and then will seek to spinoff off the new combination into a separate publicly traded company.  Pfizer also recently announced the acquisition of Array BioPharma (ARRY) for ~$11.4 billion or $48/share in cash.  See complete story.

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 $82.49/share up 1.30% on the day as it received positive EU CHMP Opinion for ZERBAXA 3g Dose for the treatment of adults with hospital-acquired pneumonia (HAP), inculding ventilator-associated Pneummonia (VAP.)

Pieris Pharmaceuticals (PIRS) closed today’s trading at $5.33/share up 12.21% on 5.3 million shares of trading after hitting an intraday high of $6.04. The move came after the company received news that the European Respiratory Society (ERS) had accepted its PRS-060 regarding an early-stage study of asthma. PIRS will report on Thursday, Aug. 1.

Atossa Genetics (ATOS),  a Seattle-based biotech firm developing novel therapeutics and delivery methods to treat breast cancer and other breast conditions closed at $2.01/share today. The average daily trading volume is 455,782 shares per day.   Atossa is developing a new proprietary modified-release oral tablet form of its Endoxifen, which is the form of the drug that the company intends for future clinical studies and commercialization. This is the next generation of oral Endoxifen following the successful clinical studies of the capsule form of the company’s oral Endoxifen. A patent application covering the new table has also been filed with the U.S. Patent and Trademark Office. As part of the development of this new oral tablet, Atossa has commenced a Phase 1 study in Australia to ascertain the pharmacokinetics of the tablet. The study is randomized, double-blinded and placebo-controlled with both single and multiple-doses in 2 groups with a total of 24 healthy female volunteers who will be dosed for 14 days. Atossa’s oral Endoxifen capsule, which has been used in previous clinical studies, will serve as the comparator. The first group of the study has now been enrolled and dosed. Steven C. Quay, Ph.D., M.D., CEO, and president of Atossa, commented: “We are excited to take this next step in our oral Endoxifen product development. Based on the abundance of information from our previous clinical studies, we strongly believe in the potential efficacy of oral dosing and intend for this modified-release tablet to be the commercial form of our oral Endoxifen. The goal of the modified-release aspect of the drug is to create more even uptake of the drug which we believe may reduce side effects and improve efficacy. This new study builds on the success of our Phase 1 studies of the oral capsule and topical forms of our Endoxifen, our recent successful Phase 2 study of topical Endoxifen, which demonstrated significant efficacy in reducing breast density, and our single-patient compassionate use study of oral Endoxifen. Following the completion of this Phase 1 trial, we will continue to use this proprietary modified-release formulation for future clinical studies — including a Phase 2 trial that we have already indicated is in development — and ultimately regulatory approval. We look forward to completing the study in the next quarter.”

San Diego-based biotech Fate Therapeutics (NASDAQ: FATE), dedicated to the development of programmed cellular immunotherapies for cancer and immune disorders,  closed up at $22.18/share down 1.42% on 291,138 shares of trading after recently establishing a new all-time intraday high of $22.82 last week! The 52-week range is $8.64 – $22.82. Cantor Fitzgerald initiated coverage on July 22nd with an overweight rating. Oppenheimer initiated coverage on Friday, July 12th with an Outperform Rating. Guggenheim Securities initiated coverage on FATE recently with a “Buy Rating” and a $25/share price target.  Mizuho initiated coverage with a price target of $27/share within the last 30 days.

Bedford, Massachusetts-based Stoke Therapeutics is a biotechnology company pioneering a new way to treat the underlying cause of severe genetic diseases by precisely upregulating protein expression. Recently Stoke Therapeutics announced the pricing of its initial public offering (IPO) of 7,891,110 shares of its common stock at a price to the public of $18.00 per share. The shares are now trading on The Nasdaq Global Select Market as of June 19, 20,19 under the symbol “STOK.” Stoke’s stock traded as high as $31.76 recently a new all-time high prior to closing trading at $23.65/share down 1.0%. See complete story.  

Xeris Pharmacueticals, Inc. (XERS) closed down .5% closing at $11.93/share.  Xeris is a specialty pharmaceutical company leveraging its novel formulation technology platforms to develop and commercialize ready-to-use injectable and infusible drug formulations.

IPO

Elsewhere on the recent IPO front-most had a not-so-good day, Zoom Video Communications (ZM) moved lower by sizable 5.61% closing at $96.47/share & Uber Technologies (UBER), the ride-sharing company closed higher by 1.44% at $43.88/share & still below its recent IPO price of $45. Plant-based burger maker Beyond Meat (BYND)  slowed down today closing at $222.13/share off 5.44% after establishing a new all-time high of $239.71/share last Friday.  Their meat is made of four main ingredients: water, pea protein isolate, canola oil & refined coconut oil and is meant to taste like “meat” and this rise feels euphoric.  Slack Technologies (WORK) which jumped into the public markets with their IPO last week flying up 48.5% from their offering price of $26/share & closed today at $33.01/share down 3.17%. Slack is a provider of a cloud-based workplace messaging app and went public via a direct listing avoiding paying fees to the relevant banks.

Economy

Nothing of note was reported today.

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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