Weekly Market Review – July 27, 2019

Stock Markets

U.S. stocks reached new record highs, spurred by increased corporate earnings results and strong second-quarter GDP numbers. It appears U.S. economic growth slowed in the second quarter thanks to trade and business investment pressures, but consumer spending which has the greatest influence, beat estimates once again, coming in at 4.3%. The solid GDP report comes at an opportune time as the Fed is expected to cut rates next week. That’s in response to increasing risks from slowing global growth. The service sector of the economy, including big providers like Alphabet (Google), is holding steady, and alongside healthy consumer conditions, leads analysts to support the view that economic expansion will continue over 2019.

U.S. Economy

The U.S. stock market has gained 21.8% so far this year and the moves in Fed policy regarding interest rate cuts have helped. Stocks are driven by several factors beyond central bank actions. The momentum of the economy and corporate earnings serves as a guide for overall performance. Earnings announcements this week added perspective to the way ahead for the markets. They supported the fact that the economy is poised to grow but underscored potential threats. Strong trends in the financial and industrial sectors offer a good sign for the outlook. Analysts agree that sustained economic growth over the next two years would create a solid base for earnings growth, even if modest. That would extend the current bull market period.              

Metals and Mining

The metals and mining markets are as focused on the Fed announcement as any. It appears that the week can play out one of two ways — the Federal Reserve introduces a 25-basis point rate cut and gold consolidates, or the central bank doubles down on easing with a 50-basis point cut and potentially gold rallies to new highs, analysts suggest. Gold has traded between $1,430 and $1,411 this week but ended the session down 0.55% on the week. August Comex gold futures ended at $1,418.50. That was up 0.27%. Wednesday’s announcement will be a key factor. Markets are currently pricing in a 78.6% chance of a 25-basis point cut and a 21.4% chance of a 50-basis point cut (source: CME Group’s FedWatch Tool). Markets feel the Fed will begin its easing cycle, but it is more important to see if the central bank is headed on a major easing cycle.

Silver has moved 9.7% higher despite a mere 1.3% gold rally. That equates to a significant 7.4x upside leverage. This is being well received by silver enthusiasts. This outperformance is considered even more impressive because it was driven primarily by big capital inflows into SLV by American stock investors returning to silver.

Energy and Oil

Oil prices ended the essentially flat, based on demand fears and inventory draws offsetting each other. Again, geopolitical factors failed to change the market in either direction. However, fundamentals are certainly playing larger role in oil markets, since the geopolitical issues seem to be impacting pricing less and less. Large oil field services companies are indicating that the industry is going to feel more pain before things get better based on slowing drilling. They see further softening during the fourth fiscal quarter. That follows statements by big providers about similar concerns for contraction in the U.S. shale sector. Temperatures were higher than normal across the Northeast and Great Lakes regions after a heatwave at the beginning of the week. But by week’s end, most of the severe heat began to dissipate, adding downward pressure on prices. Temperatures across the eastern and central United States were generally lower than normal by the end of the week. Henry Hub spot prices fell 16¢ from $2.38/MMBtu last Wednesday to a low of $2.22/MMBtu a week later. At the Chicago Citygate, prices decreased 25¢ from $2.26/MMBtu last Wednesday to a low of $2.01/MMBtu at the same time last week.

World Markets

Markets in Europe rose over all, lifted mostly by positive earnings reports and again supported by indications from the European Central Bank (ECB) that more monetary stimulus will take place. The pan-European STOXX Europe 600 Index, the UK’s FTSE 100 Index, German DAX, and Italy’s FTSE MIB Index all headed higher on the week. The euro fell against the dollar. That came after the ECB kept rates steady but indicated it is willing to cut short-term rates for the first time since 2016. The signal is a significant major policy shift aimed at protecting the European economy. ECB President Mario Draghi didn’t help much, stating that the economy is getting “worse and worse,”.

Chinese stocks advanced as traders in anticipation of high-level trade talks with the U.S. next week. The benchmark Shanghai Composite Index added 0.7% and the large-cap CSI 300 Index, gained 1.3% for the week. U.S. and Chinese negotiators are schedule to hold trade talks in Shanghai on July 30 and 31, the first such talks since negotiations broke down in May.

The Week Ahead

All eyes will be on the actions of Fed this week in what promises to be a very active week of reporting. Earnings will also be a big part. One-third of the S&P 500 companies are scheduled to report second-quarter earnings. The Federal reserve is fully expected to cut rates for the first time since the Financial Crisis of 2008. Other key economic data emerging next week includes consumer spending, the ISM Manufacturing Index, July’s jobs report, and the trade deficit figures.

Key Topics to Watch

–           S&P companies reporting

–           Consumer spending numbers

–           Consumer confidence index

–           ADP employment

–           Fed rate announcement released Wednesday

–           Construction spending for June

–           ISM manufacturing index

–           July Motor vehicle sales

–           Unemployment rate released Friday

–           Trade deficit for June

Markets Index Wrap Up

Weekly Market Review: June 9, 2019

Stock Markets

The S&P 500 rallied 4.4% as stocks finished higher for the best weekly gain in the last six months. However, bond yields declined to the lowest levels in nearly two years. Increased expectations of a Fed rate cut, positive response to the U.S. and Mexico reaching a resolution to avoid tariffs, and improved valuations, all helped stocks move higher.

In terms of economic data, signals were mixed with strength from the services sector mostly offset by weakness in the manufacturing sector. While job gains for the month of May came in below expectations, the unemployment rate is still very healthy at a 50-year low. Analysts expect a more balanced mix of positive and negative moves this season and feel confident about rising corporate profits, strong economic growth, combined with low interest rates creating a positive fundamental base that outweighs risks.

This also offers an opportunity to enhance diversification. Reviewers call for appropriate global stock-market allocations, with diversification across asset classes, including small- and mid-cap stocks, that will likely benefit from increased trade fears or renewed economic signals.

U.S Economy

There remains continued evidence of a slowdown in the U.S. economy, which in turn boosted hopes for a turn in Fed’s policy. Numbers from ADP showed that private sector payrolls had grown by the smallest monthly amount in over nine years for the month of May. Alongside that news, the Labor Department reported overall, payrolls had expanded by only 75,000 in May. The saving grace: May’s unemployment rate held steady at of 3.6%, its lowest in five decades. Almost immediately after the figures were issued, futures markets began pricing in over a 98% probability of a rate cut in 2019, which they say has a 90% chance taking place by July (source: CME Group data).

Economist suggest that ultimately, the determination of whether the economy continues to grow or falls into recession will be determined by the labor market and household spending. By most estimates, these are expected to remain healthy enough to support moderate GDP growth this year. This is heavily weighted in favor of the still-healthy labor market that is driving several key metrics.

Mexico On Hold

Expected tariffs planned to come into effect on June 10th were averted in a last-minute deal reached between the U.S. and Mexico. In a joint declaration released by the U.S. state department, the two countries said Mexico would take “unprecedented steps” to curb irregular migration and human trafficking.

The U.S. did not however, get one of its key demands that would have required Mexico to take in asylum seekers heading for the U.S. and process their claims on its own soil.

Mexico agreed to:

  • Deploy up to 6,000 additional troops along Mexico’s southern border with Guatemala using its National Guard beginning Monday
  • Take “decisive action” to tackle human smuggling networks

The US agreed to:

  • Expand its program of sending asylum seekers back to Mexico while they await reviews of their claims.
  • “work to accelerate” the adjudication process

Both countries have offered pledges to “strengthen bilateral co-operation” over border security, including what they have called “coordinated actions” and information sharing.

These actions, while not inferring a long-term solution, have arrested the immediate actions of the intended tariff going into place and offered some signs of confidence that the two parties can work out terms that will give the markets breathing room.

Metals and Mining

The precious metals markets were given a lift this week by geopolitical issues that continue to plague investors who then seek out the metals as safe havens. At the forefront was the gold market, which saw its best weekly performance in more than a year. Some leading analysts have predicted that the precious metal has enough momentum now to snap the critical long-term resistance barrier in the near-term. Lower U.S. employment growth helped push gold prices back to within close breaking distance of the all critical $1,350 level. During the week, August gold futures traded at $1,347.10 an ounce, up 2.7% compared to the previous Friday.

Gold faces some strong technical headwinds. Since hitting its 2015 low, it has tested resistance at or near $1,350 a total of eight times. Silver is taking some signals here, following gold’s lead on Friday. It added gains on the back of ongoing geopolitical concerns too, trading just under the US$15 per ounce level on track for its best week since late January. The others in the precious group were also up: platinum was up close to 1 percent for the week and on track for its first weekly gain in the last seven weeks. Palladium also climbed, edging up 1.05 percent for the week. As of 10:05 a.m. EDT Friday, palladium was trading at US$1,346 — a gain of close to US$20 from the previous week.

Energy and Oil

Once again, energy shares lagged, weighed down by continued weakness in oil prices, and the typically defensive utilities and real estate sectors also underperformed. Oil futures climbed for a second straight session Friday, with U.S. prices erasing their loss for the week just two days after dipping into a bear market. Natural gas spot prices fell at most locations this week. Henry Hub spot prices fell from $2.63 per million British thermal units (MMBtu) last Wednesday to $2.39/MMBtu. Temperatures were close to normal across much of the Lower 48 states, with warmer-than-normal temperatures in the Pacific Northwest and cooler-than-normal temperatures in the Southwest and Northeast. At the Chicago Citygate, prices decreased 22¢ from a high of $2.43/MMBtu last Wednesday to $2.21/MMBtu yesterday. Traders will be watching updates on a production-cut agreement between the Organization of the Petroleum Exporting Countries (OPEC) and other major oil producers ahead of the deal’s expiration at the end of this month.

World Markets

European stocks rose as investors began pricing in expectations for rate cuts as both the U.S. Federal Reserve and the European Central Bank (ECB) indicated that they could possibly intervene if trade tensions hit the global economy. The pan-European STOXX Europe 600 Index and the UK’s FTSE 100 Index gained more than 2%. The exporter-heavy German DAX Index and Italy’s FTSE MIB Index both gained almost 3%. Germany, which leads European economies, reported that its Bundesbank data showed weak exports are taking a toll on the German economy and cut its economic output forecast to 0.6%, down from 1.6% in December. The central bank also slightly lowered forecasts for 2020 and 2021. Meanwhile, signs of China’s slowing economic growth continued to accumulate. Clearly this is raising hopes for stimulus from Beijing. The International Monetary Fund trimmed its 2019 growth forecast for China to 6.2% from a prior 6.3% estimate and projected 6.0% growth next year.

The Week Ahead

This coming week is a relatively light week for reporting, but some areas to focus on include inflation numbers to be released on Wednesday, along with May retail sales and consumer sentiment reported this coming Friday.

Key Topics to Watch

–           Mexican Tariffs relaxation

–           China Trade War changes based on Mexico

–           U.S. Retail Sales Report for May

–           U.S. inflation figures reported by the Fed

–           Gold to test the $1350 per ounce mark

Markets Index Wrap Up

Double, Even Triple 
Your Profit Opportunities 
with this One Key Move

Move ahead of the curve. Here’s a simple plan: shift your focus from broad markets to key sectors to find the real opportunities that America’s roaring markets offer.

Here’s where to look now for wealth-building investment strategies:


Many will tell you that little or no upside room remains in the Dow or S&P. In fact, these popular indices may be staged for a sharp, costly correction. Flirting with such record highs, these are likely not the places to look when seeking to build your personal wealth. You simply can’t expect mature companies, like those on the big boards, to maximize opportunities. Instead, you could go deep to find the companies that can pay multi-fold profits.

So, drill deeper. Target the top performing sectors. Seek innovative companies developing new technologies poised to reward early shareholders with enormous gains. It’s that simple and it’s a formula that has produced big returns again and again.

Among the top performers at this point in time is the medical device sector. Over the last five years, this one sector has outperformed the S&P 500 by more than double. Over the last six months, by more than triple!

Huge upside in the near- and long-term without the risk of pharmaceuticals.

Medical device technologies have made fortunes for investors who caught innovators early in the product development stages. Explosive gains can come quickly as these small-cap companies leap on stage with true innovation.

It’s an ideal sector to search out a rising star. Medical devices can pay big returns similar to a successful pharmaceutical innovation. But unlike the pharmaceutical sector, medical device innovation is not burdened by the same staggering R&D expense and lengthy approvals process.

In fact, the medical device space is the one sector where you can hunt for big rewards in medicine with less of the downside risk that a last minute denial from the FDA poses to all big pharmaceuticals.

Within the medical device sector, lower R&D costs make it possible for small companies to make enormous health care breakthroughs. And once proven effective, the resulting intellectual property can be worth hundreds of millions.

Quick profits as well as long term wealth-building.

Consider the history of Inogen (INGN). Inogen introduced the first truly portable oxygen concentrator to market in 2013.[1] Over the last five years since its introduction, INGN shares soared over 16-fold. $10,000 in INGN shares bought in 2013 would now be worth over $164,000.

And it continues to soar. Over the last six months, INGN shares have more than doubled. That’s an impressive return in a sector that has gone largely unnoticed.

Real breakthroughs; staggering share price gains.

Companies with maturing products, like Inogen, may still have some upside potential, but more than likely, INGN’s big gains are already built in. A great story, but not one you can follow for building wealth.

So focus on the future, not the past.

It’s not always to peer into the future of a market or product and that prevents many people from acting. What you should be looking for is a clear breakthrough, one that changes the landscape and offers a unique approach to a market niche in real need.

One emerging company that keeps coming up on the radar with all of these criteria is Imagin Medical (OTC: IMEXF / CSE: IME).

Imagin Medical is now progressing through advanced-stage development of technology that can revolutionize treatment of bladder cancer.

Bladder cancer?

Yes, bladder cancer poses huge medical challenges burdened with decades-old technologies.

Start with the grim reality…


Not only is bladder cancer the fourth most common form of cancer in menit’s also the most likely to re-occur. If not caught and treated in time, bladder cancer can progress to other parts of the body. This greatly complicates cancer treatment and often leads to fatal outcomes.

Also complicating the treatment process is the technology currently used to identify tumor locations. It literally dates back decades.

A 2009 report from the World Urology Journal released through the National Institute of Health (NIH) confirms the human and financial tolls of bladder cancer:

bladder cancer (bc) has the highest lifetime treatment costs per patient of all cancers.the high recurrence rate and ongoing invasive monitoring requirements are the key contributors to the economic and human toll of this disease.[2] [author’s emphasis]

That said, bladder cancer does not hand down a certain death sentence.

With effective intervention bladder cancer survival rates can be quite high. When diagnosed early, surgical interventions are used to remove cancerous tissue. What’s more, surgery can be successful with minimally invasive procedures, sometimes even on an outpatient basis in a urologist’s clinic.

But here’s where it gets problematic. Bladder tumors can be removed successfully, but only if the surgeon can actually see where the cancer is located. If the surgeon misses some tumorous tissue, it’s not because they didn’t do their job…it’s because the tumor could not be seen. The visualization problems make recurrence of cancerous growths almost inevitable.

The American Urological Society states it plainly: “Incomplete [tumor] removal is likely a significant contributing factor to early bladder cancer recurrences.”

So, don’t blame the surgeon. This is about limitations of available technology. Current visualization tools make the surgeon’s job very challenging. Even a few cancerous cells left behind means the cancer can take hold again.

Here’s where Imagin Medical can have a dramatic impact. Its i/Blue Imaging System offers surgeons a new advanced technology that simplifies and improves accuracy, highlighting bladder cancer tumors for surgical removal.  Chances for complete tumor removal are greatly improved and the incidence of cancer recurrence is reduced.

This is a staggering breakthrough that carries enormous financial implications.

As of now, the company reports that it has completed development of an alpha prototype for its i/Blue imaging technology. In other words, the early R&D is doneImagin Medical appears to be entering the home stretch… and this presents an ideal opportunity for those looking to get in on Imagin Medical in the early stages.

Once released to market, the i/Blue system can be expected to spread rapidly. Clearly, the bladder cancer market is in real need of this promising technology.

Based on product development phases and market conditions, this could be the ideal time to act on Imagin Medical (IMEXF). Imagin Medical has a way to go before it begins monetizing its technology.

However, there’s no risk in next steps.

First and foremost: put IMEXF on your watch list now, before this window of opportunity closes.

There seems little question that an enormous unmet, substantial need exists for Imagin’s i/Blue technology. This already existing vacuum of demand could quickly propel the i/Bluesystem to millions in sales. It may also trigger one event that investors look for in this scenario: a buyout by big med device or technology firms.

Imagin’s i/Blue cancer visualization technology is an ideal candidate for intellectual property rights acquisition. A major player operating in the medical device sector could soon pay enormous premiums to shareholders holding ground floor positions. At its current stage of product development, Imagin Medical appears well positioned.

For now, Imagin Medical remains virtually unknown in the medical device sector. However, don’t expect that to last: over the last few months, volume has been accelerating and word is beginning to get out. Today’s ground floor opportunity could vanish overnight following a single news release.

Many investors carefully follow companies like Imagin Medical, prepared to respond instantly on breakthrough news. Their rush to buy can trigger dramatic gains at a moment’s notice.

A single announcement can set off a stampede of buying from investors seeking last-minute shots at an early position. It’s tough to know when such an announcement may come, but one thing seems certain, Imagin Medical appears to be standing on the threshold of that event.

Take a moment right now to go to the Imagin Medical website and subscribe to their email list.


Go to:
https://imaginmedical.com

While you’re on the site, take some time to begin your due diligence. You’ll find detailed explanations about bladder cancer, its treatment, and how i/Blue technology plans to revolutionize surgical interventions and dramatically improve the prognosis for bladder cancer patients.

An enormous market on standby for a new, effective solution!

Urology Times reports that the U.S. Department of Health and Human Services projects the need for 16,000 practicing urologists by the end of this decade.  That’s a 37% leap over the 11,703 practicing urologists in 2014.[3]

This projection likely recognizes that an aging male population will trigger a marked increase in bladder cancer diagnoses. This is the population most likely to contract the disease. The timing for Imagin Medical is likely ideal…as it is for the company’s shareholders.

Within a few years following a market release of the i/Blue system, you can look for significant penetration of the system into every hospital across the country. And hospitals aren’t the only market target. Also in the market for i/Blue are thousands of urology clinics where minimally invasive surgical procedures are routinely practiced these days.

In short order, you could see thousands of i/Blue systems sold and delivered…and that’s just in the United States.

The world market for the i/Blue system is likely to be many times the U.S. market alone. In Europe, 17,000 urologists are serving a population of 730 million today.[4] Like America, the need for more is likely to increase sharply over the coming few years.

Imagin Medical is on a fast track

In July , the company announced that its i/Blue system was demonstrated in a ten-subject trial conducted at the University of Rochester Medical Center. This trial provided valuable feedback for further design enhancements to Imagin’s i/Blue technology.

Further, in parallel trials, the company announced successful completion of the critical “proof of concept” phase for its optical modules. This is a key phase of development  prior to the creation of a functioning and final product designed for market.[5]

For further details on these and other key company developments, visit the company website and be sure to register for their email list. If you have any interest in Imagin Medical, getting on the company’s email list is essential for ongoing due diligence. 

Go to: https://imaginmedical.com


DISCLAIMER

The assembled information disseminated by Financials Trend is for information purposes only, and is neither a solicitation to buy nor an offer to sell securities. Financials Trend does expect that investors will buy and sell securities based on information assembled and presented in Financials Trend. PLEASE always do your own due diligence, and consult your financial advisor.

All assembled information within Financials Trend is subject to change without notice. The assembled information within Financials Trend is based on information supplied by the company, press releases, SEC filings, or from other sources believed to be reliable as of the date of the report on the featured companies, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. An affiliate of the Financials Trend is a registered investment advisor. Financials Trend and its affiliates and authors are not, brokers, broker-dealers, market makers, investment bankers, analysts or underwriters.

Forward Looking Statements
Information in our emails and on Financials Trend will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. An example of forward-looking information are statements relating to the future anticipated direction of the industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth and potential contracts. These and similar forward statements are subject to a number of known and unknown risks and uncertainties outside our control that could cause actual operations or results to differ materially from those anticipated.

The cautionary statements made in this document should be read as being applicable to all related forward-looking statements wherever they appear on Financials Trend or in other communications.

We encourage you to visit the Securities Exchanges Commission Web site https://www.sec.gov and read about how to avoid Internet Scams and other valuable information.

Compensation
In order to be in full compliance with the Securities Act of 1933, Section 17(b), Financials Trend and its management will fully disclose if they receive fees from profiled companies or agents representing the profiled companies. These fees may be paid in cash, securities of profiled companies, or both, and will be completely disclosed in each profile.

Since Financials Trend receives compensation from the companies that it profiles or  other third party agencies and its employees, affiliates, or members of their families could hold stock in the profiled companies, there is an inherent conflict of interest in the statements and opinions, and such statements and opinions are not independent.

SOURCES

[1] https://www.inogen.com/resources/oxygen-concentrators/history-of-oxygen-concentrators/

[2] https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2694315/

[3] https://www.quora.com/How-many-urologists-are-there-in-the-USA

[4] https://www.justanswer.com/health/2rxjv-active-urologists-europe-is.html

[5] https://imaginmedical.com/wp-content/uploads/2018/07/Press-Release-7-17-17-Research-Study-Progress.pdf

Scroll Up