February 14, 2018 7:33am

Sector intelligence and perspective

 

Can the sector stay the course as fluctuations and fundamentals split?

Selling into strength is this market’s byproduct

 

The most important CPI report in over 10 years is today

 

Pre-open indications: 1 BUY and 3 SELLs

 

Higher open expected

Dow futures are UP +0.50%% (+123 points) and NASDAQ futures are UP +0.46% (+30 points)

 

Dow futures rise more than 100 points as traders wait for key inflation data

European stocks were higher supported by strong corporate earnings and robust economic data.

Asian markets closed mixed after U.S. stock indexes recorded a third straight day of gains.

 

Issues to be faced at the open: investors remain on edge, as concerns of higher interest rates continue to weigh on sentiment.

Data docket: The government's Consumer Price Index (CPI) data are scheduled to be released at 8:30 a.m. ET, and investors will be awaiting the release to see what this means for markets and the economy going forward. Mortgage applications are due to be released at 7 a.m. ET, followed by retail sales at 8:30 a.m. ET and business inventories at 10 a.m. ET.

 

Been where, done what …

Last week’s RegMed, stem and cell therapy sector’s record over 5 sessions (of 40 covered companies):

·         Tuesday closed POSITIVE with 13 decliners, 24 advancers and 3 flat;

·         Monday closed POSITIVE with 10 decliners, 28 advancers and 2 flats;

·         Friday closed NEGATIVE with 28 decliners, 9 advancers and 3 flats;

·         Thursday closed NEGATIVE with 28 decliners, 9 advancers and 3 flat;

·         Last Wednesday closed POSITIVE with 13 decliners, 25 advancers and 2 flats;

 

 

Henry’omics:

The indexes closed higher for the third day (Tuesday) in a row, bouncing back from correction levels seen last week while the sector saw two (2) up days post two (2) down.

Today’s catalyst for the market could come from January consumer-price-inflation data. There are concerns that if CPI comes in hotter than expected, it could spark another selloff, as worries about higher prices and its effect on the Fed’s interest-rate hiking plans triggered last week are dramatic selling and spike in volatility.

Pay attention: “When something happens incrementally, it’s not news. When change is abrupt, we suddenly want answers from experts. We want instructions. We want to take action. The real danger is not a market correction — they happen — but acting on instructions based on nothing more than guesswork.” <MarketWatch>

Q4 financial results are spilling over as cash positions come into focus!

 

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Wednesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating in Wednesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is indicating a POSITIVE +0.23% in Wednesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a POSITIVE 0.42% in Wednesday’s pre-open

 

 

Companies in my headlights:

Applied Genetic Technologies (AGTC) closed down -$0.05 to $3.80 after Monday’s $3.85, last Friday’s $3.95, Thursday’s $4.25 and the previous Wednesday’s $4.25 after Tuesday and Monday’s $4.05. AGTC announces their Q4/17 results on 2/9 (Friday) and which also has clinical trial timing issues and spending woes – Maintaining SELL;

bluebird bio (BLUE) closed up +$2.10 to $199.60 after Monday’s $197.50, last Friday’s $191.80, Thursday’s $190.80 and the previous Wednesday’s $202.90 and  the aftermarket indication is a positive +$1.40 or +0.70% – Maintaining BUY;

Biostage (BSTG) closed down -$0.47 to $3.10 after a conference call of half-truths and quarter answers after $30 M being spent and wasted causing a $47 M deficit. I wouldn’t trust this management team; with your nickel forget a dollar – Maintaining SELL;

Vericel (VCEL) closed up +$0.45 to $7.35 after Monday’s $6.90, Friday’s $6.60 and last Thursday’s $7.15having started February at $8.15 and January at $5.90 as December finished at $5.45 – Maintaining SELL;

 

Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.  All investments are subject to risks. Investors should consider investment objectives.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.