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“Trade, Cut, Confusion” Vista Partners Daily Market Recap 10/7/19

By John F. Heerdink, Jr.

With Warner Brothers’ new supervillain movie Joker experiencing an opening weekend with $247M in global ticket sales you might think all is well as headlines flew around the world today preaching its success. However, a Bloomberg article did its best to counter these good feelings with another story that reported that China was not interested in finalizing a trade deal at this time. This is a timely story as directly on the table this week is a visit from China delegates in Washington. We also have the ongoing impeachment inquiry clouding the vision of many, not to mention the number of economic reports that were reported last week that showed some cracks in the US economic growth armor. Many are left confused as we head into the Fed’s next interest rate decision that is due on October 30th and that the overwhelming majority believe will bring forward the third cut this year.

As a result of the confusion trading volume was lighter than usual and it was all “red” again today across the board. The S&P 500 ended today’s session up by 13.22 points or .45% as it closed at 2,938.79. All 10 of the eleven S&P 500 sectors dropped today with the energy sector selling off .9% to lead the fall. The Dow dropped 95.70 points closing at 26,478.02 down by .33%. The tech-heavy Nasdaq Composite closed at 7,956.29 down .33% or 26.18 points. The Russell 2000, the small-cap stock market index representing the bottom 2,000 stocks in the Russell 3000 Index lost 2.91 points down .19% and it ended trading lower than the 1,5k level again at 1,497.79.

Treasury yields moves were mixed. The 2-yr Treasury yield rose to 1.46% up .17% & the 10-yr yield finished higher at 1.55% up .04%.

The U.S. Dollar Index strengthed a little today and closed at 98.97 moving higher by .2%.

Oil prices bumped up a penny to close at $52.79/bbl. Chevron (CVX) closed at $113.26/share down .52%, Exxon (XOM) closed at $68.02/share down by 1.38%. Occidental Petroleum (OXY) closed at $42.18/share down 2.07%.

Gold prices closed at $1,494.95/oz off 12.21. Silver closed at $17.60/oz down .03. Hecla Mining Company (HL) closed at $1.93/share up .52% on the day after reporting a 30% increase in Q3 silver production of 3.3 million ounces and gold prodcution  of 77,331 ounces while confirming cash and cash equivalents of ~$33M an $24M increase over June 30th, 2019 with outstanding debt slightly lower. First Majestic Silver (AG) closed higher at $9.52/share down 1.45%.

Volatility bets ended up today.   The CBOE Volatility Index (VIX) closed at $17.86/share up 4.81% or $.82/share. The 2x leveraged ETF TVIX  closed at $14.08/share up 2.25% or $.21/share and traded between $13.46 and $14.45 today.

Economic Reports

On Monday, we received the consumer credit report which showed a $17.9B move higher in August.


The S&P 500 healthcare sector closed at 1038.97 down .43%. UnitedHealth (UNH) closed higher by .66% at $221.24/share, Walgreens Boots Alliance (WBA) closed at $52.76/share down .4% & Cigna (CI) lost 1.02% closing at $149.20/share.

INVO Bioscience, Inc. (IVOB) ended the day at $.285/share. 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.

INVO Bioscience (IVOB) announced in August 2019 that revenues for their most recent quarter totaled $658,638 compared to $110,210 in the second quarter of 2018, an increase of 498%. Revenue growth was driven primarily by increased product sales in the U.S. as shipments to Ferring were above expectations outlined in May 2019 as they began to increase their marketing activities. On January 14, 2019, the Company closed an exclusive U.S. licensing agreement with Ferring International Center S.A. the parent Company of Ferring Pharmaceuticals U.S. to commercialize the INVOcell™ system for use in the treatment of infertility. As part of the U.S. licensing agreement, the Company received a $5 million one-time milestone payment, with the ability to receive an additional $3 million upon obtaining a label enhancement from the U.S. Food and Drug Administration.

INVO Bioscience announced recently that the Company will exhibit at the American Society for Reproductive Medicine (ASRM) 2019 Scientific Congress & Expo on October 12-16, 2019 in Philadelphia, PA at booth #1807 and the 20th World Congress of the International Society for In-Vitro Fertilization (ISIVF) on October 24-26, 2019 in Barcelona, Spain at booth #15. Kathleen Karloff, Chief Executive Officer of INVO Bioscience, commented, “We are pleased to participate in these important international industry events. We are gratified with the growing global acceptance of our INVOcell technology. INVOcell opens the door to pregnancy and the development of families for a large number of couples where more traditional methods have not. We provide hope to those that have exhausted other options, and we do it with a more natural experience and in a more cost-efficient manner. We are proud to have developed an effective treatment that will increasingly occupy a unique position in the fertility treatment industry worldwide.”


The Ishares Nasdaq Biotechnology ETF (IBB) moved lower by .12% to close at $99.53 & the NYSE Arca Biotech Index (^BTK) closed at 4,218.04 up .58%.

Atossa Genetics (ATOS),  a Seattle-based biotech firm developing novel therapeutics and delivery methods to treat breast cancer and other breast conditions closed at $1.75/share on this 7th day of Breast Cancer Awareness Month.

Atossa announced Monday that it had reported preliminary results from its Phase 1 study of its proprietary modified-release tablet form of oral Endoxifen. The Phase 1 study was conducted in Australia. The objectives of the study were to assess safety and tolerability and to ascertain the pharmacokinetics of the tablet. The study was randomized, double-blinded and placebo-controlled with both single and multiple-doses (daily for 14-days) in two groups with a total of 24 healthy female volunteers. Atossa’s oral Endoxifen capsule served as the comparator. Based on the number of women with MBD and the number of patients who have survived breast cancer but are not fully benefiting from taking tamoxifen, Atossa estimates that the potential markets for its proprietary formulations of Endoxifen could potentially exceed $1 billion in annual sales. All objectives were successfully met:

– Safety: There were no unexpected and serious adverse events; no clinically significant adverse safety signals; and no clinically significant adverse events in participants receiving the tablet form of oral Endoxifen. No participants withdrew or were removed from the study due to skin rashes and irritation or other adverse events (side effects).

– Tolerability: The tablet form of oral Endoxifen was well tolerated by each participant throughout the study.

Atossa also stated the following: These results demonstrate the suitability of the tablet form of oral Endoxifen for further clinical development.

“This was an important study because the results support advancing our modified-release tablet into a Phase 2 study to reduce mammographic breast density (MBD), which we plan to begin in the fourth quarter by contracting with a CRO,” commented Dr. Steven C. Quay, Ph.D., M.D., CEO and President of Atossa. “We will continue our analysis of the Phase 1 data and plan to announce additional results in the coming weeks. We also recently completed a successful Phase 2 study of our topical form of Endoxifen in which a significant reduction of MBD was achieved among study participants who applied the stronger dose of topical Endoxifen. Our success with the topical Phase 2 study and now the successful Phase 1 study of the tablet, supports our plan to advance our proprietary tablet into a Phase 2 study to reduce MBD.”

Legislation has been recently enacted in approximately 35 states requiring that women be notified if they have mammographic breast density (MBD) and those notifications typically state that women with MBD have a higher risk of developing breast cancer, and that mammography may not be as effective in detecting breast cancer because the MBD can “mask” the detection of cancers. In February 2019, Federal legislation was enacted that requires that the FDA adopt rules requiring that mammography reports include information about breast density and inform women about their breast density. It is estimated that approximately ten million women in the United States have MBD, for which there is no FDA-approved treatment. Although oral tamoxifen is approved to prevent breast cancer in “high-risk” women, it is used by less than 5 percent of women with an increased risk of developing breast cancer because of the actual or perceived side effects and risks of tamoxifen. Atossa Genetics believes its Endoxifen may provide an option for women to proactively reduce the density of their breasts. Moreover, the company’s Endoxifen may improve mammography accuracy and patient care by unmasking cancerous tumors that are otherwise obscured by high breast density.

Neubase Therapeutics (NBSE) closed at $4.93/share. Neubase is a biotechnology company developing next-generation antisense therapies to address genetic diseases. BTIG recently picked up coverage with a BUY rating and a target of $15/share.

Tech & Entertainment

Apple (AAPL) closed at $227.06 share up .02% as optimism coontinues to grow on the new iphone models and new streaming entertainement offer, Alphabet (GOOG) closed at $1207.68/share down .11%, Facebook (FB) closed at $179.68/share down .43%, Microsoft (MSFT) closed at $137.12/share down .72%, NVIDIA (NVDA) closed at $184.33/share up 1.3% & IBM closed at $141.28/share down 1.2% while Cisco Systems (CSCO) gained .53% finishing at $47.77/share. Disney (DIS) closed at $130.90/share rising .48% and Netflix (NFLX) closed at $274.46 up .61% and Amazon (AMZN) closed at $1,732.66/share down .40%.

Shares of cloud-based, identity-management software company Okta (OKTA) followed is now up over ~15% in the leass three days as it closed at $119.07/share up another 2.18% today. They went public in April 2017 at $17/share.

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