The markets shot out like a cannon this morning but tailed off over the course of the day to finish higher on this first day of July and the first day of Q3 2019. The markets initial reaction seemed to be fueled by positive news that a trade truce materialized between the US & China over the weekend at the G20 Summit. President Trump stated that he would hold off from imposing the $300 billion additional tariffs on Chinese goods and reversed measures that had completely blacklisted the Chinese technology/telecommunications concern Huawei which is now allowing companies to sell to them as long the parts sold do not “involve” parts that could negatively affect or threaten national security. Apparently, China also committed to buying a “tremendous” amount of US goods according to President Trump. These moves drove the technology sector higher today and specifically the chip makers. i.e. Intel (INTC) which ended up .38% closing at $48.05/share. Memory chip maker Micron (MU) jumped 3.94% closing at $40.11. Big tech stocks faired well too Amazon (AMZN) gained 1.51% closing at 1,922.19, Alphabet (GOOG) moved higher by 1.58% closing at $1,097.95, Apple (AAPL) jumped 1.83% closing at $201.55, Facebook (FB) finished flat closing at $193.00.Shares of Microsoft (MSFT) gained .1.28% closing at $135.68.
The Russell 2000, the small-cap stock market index representing the bottom 2,000 stocks in the Russell 3000 Index added 3.09 points closing at 1,569.66 up .20%. The S&P 500 bumped up 22.57 points and closed at 2,964.33 up .77% on the day. The Dow added 117.47 points closing up .44% ending at 26, 717.43. The tech-heavy Nasdaq closed at 8,091.16 up 1.06% up 84.92 points.Volatility bets closed strongly lower again today & within a relatively tight trading range. The CBOE Volatility Index (VIX) closed lower at $14.06 off 6.76% or $1.02/share. It traded between $13.80- $14.64. The 2x leverage ETF TVIX also closed significantly lower at $16.91 down 10.34% and traded between $16.82 and $17.53 today. The US Dollar Index moved .7% higher today ending the day at 96.82.
Institutional alternative asset manager Och-Ziff Capital Management Group (OZM) closed at $24.16 jumping another whopping 5.23% after achieving another new 52-wk high of $24.36. The 52-wk range is $8.60 – $24.36. OZM sports a 4.36% cash dividend. Los Angeles-based Colony Capital (CLNY) a leading global investment management firm with assets under management of $43 billion closed at $5.01 up .20%. CLNY pays an 8.76% cash dividend.
Nike (NKE) closed at $85.41 up +1.74% after reporting that they missed analyst earnings estimates last week but maintained full-year guidance.
The health care sector moved higher again today & spiking towards the end of the day. The S&P 500 healthcare sector closed at 1078.60 up .57%. Change Healthcare Inc., a leading independent healthcare technology platform, announced Wednesday after the close that they had priced their initial public offering of 42,857,142 shares of its common stock at a price to the public of $13.00 per share and its concurrent offering of 5,000,000 of its 6.00% tangible equity units (“Units”), with a stated amount of $50. The offerings are expected to close on July 1, 2019, subject to customary closing conditions. The completion of the Units offering is conditioned upon the completion of the common stock offering, but the completion of the common stock offering is not conditioned upon the completion of the Units offering. Change has granted the underwriters in the common stock offering a 30-day option to purchase up to an additional 6,428,571 shares of common stock. Change has granted the underwriters in the Units offering an option to purchase, within a 13-day period beginning on, and including, the date of the initial issuance of the Units, up to an additional 750,000 Units. The shares and the Units began trading on the Nasdaq Global Select Market today, under the symbols “CHNG” and “CHNGU,” respectively. CHNG shares rose to a high of $15.19 and closed at $15/share up 15.38% in its first day of trading on Thursday but today came back to earth again today closing at $14.40 dropping 2.67%. Community Health Systems, Inc. (CYH) one of the largest publicly traded hospital companies in the US hit an intraday high of $2.74/share & a low of $2.63 today and closed the day at $2.69 up .75% on 1.27 million shares of trading. On June 27 CYH announced that its subsidiaries signed a definitive agreement to sell 92-bed Bluefield Regional Medical Center in Bluefield, West Virginia, and its associated ancillary healthcare operations to subsidiaries of Princeton Community Hospital. The hospital included in this transaction is among the additional planned divestitures discussed on the Company’s Q1 2019 earnings call. Also, note there has been 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. The Ishares Nasdaq Biotechnology ETF (IBB) moved higher by .58% closing at $109.73. This sector has been on a more than healthy run over the last 30 days. The 52-wk range is $89.01 – 122.97.
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