“The Worst Of Weeks” – Vista Partners Daily Recap 12/21/2018
And the rout continues. US stocks slid once more on Friday, closing out what has become one of the worst weeks for the market in a decade. The S&P 500 ended the session down 2.06% (50.84 points), and the Nasdaq plummeted 2.99% (195.41 points) meaning it has officially entered bear market territory. The Dow dropped 1.81% (413.23 points) as it rounded out its worst weekly performance since October 2008.
Individually components of the Dow were almost universally down today except for a few exceptions – one of which was NIKE (NKE). In a bizarre contrast to the rest of the day, their stock soared an astounding 7.17% after it also surprised the street with an earnings beat. Much more in keeping with the tone of the week, Goldman Sachs (GS) led the losers with a drop of 4.96% and American Express (AXP) was right behind with losses of 4.64%.
Atossa Genetics (ATOS) a Seattle-based biotech firm focused on treatments in breast cancer had a rough day, as it tumbled 11.32% to $0.94 per share. The iShares NASDAQ Biotechnology Index (ETF) (NASDAQ: IBB) also dropped 3.91% as the biotech sector has been taking a beating.
However, there seemed to be some hope early in today’s session after the president of the Federal Reserve Bank of New York, John Williams, restated that the Fed is “listening to not only markets but everybody that we talk to, looking at all the data and being ready to reassess and reevaluate our views.”
But that hope was quickly dashed as investors continued to react to Wednesday’s announcement of another rate hike and the likely partial government shutdown that will start at midnight if a funding resolution cannot be passed.
With all this in mind & at the risk of sounding like a broken record, the significantly leveraged & bearish electronically traded funds, TVIX & TZA (bets respectively against the broad market & the Russell 2000 were up significantly again today at the close, closing at $72.08 up +$6.82/share, +10.45% & $17.63 +$1.28/share, +7.83% and continue to provide an opportunity with the increased volatility of the markets.
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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