April 5, 2019 8:51pm
As the sector regained altitude although volume and percentages (%) up and down were low in the first week of April with only one (1) negative close
The week’s gains come as investors brace for Q1/19 “earnings” season – BioMarin Pharmaceuticals (BMRN) is first with a 4/25 conference call
Pre-open indications: 6 HITs and 1 MISS
I won’t apologize for being a “Devil’s Advocate” challenging views or consensus by building a better or possible case for an explanation of today’s actions.
RMi’s daily report may say little or a lot and its final judgement may be inconclusive; yet it serves as insurance that all indications are being examined and evaluated.
Markets and indexes:
- The Dow closed up +40.36 points or +0.15% to 26,424.99
- The S&P closed up +13.35 points or +0.46% at 2,892.74
- The NASDAQ was up +46.91 points or +0.59% to 7,938.69
Sector equities nailed a gain after a depreciated Thursday as Friday’s bounce re-invigorated sentiment.
One reason, I am skeptical of the longevity of the sector’s volatility versus volume.
Another reason for MY caution is that volumes are running 15% below the average.
However, call option buying and put selling is pushing-up stock prices as brokers and traders hedge their bets!
The S&P 500 and Dow both climbed about 2% this week, while the NASDAQ surged 2.7%.
The U.S. economy added 196,000 jobs in March, according to data released on Friday by the Bureau of Labor Statistics. Economists polled by Dow expected a print of 175,000. The U.S. unemployment rate, meanwhile, remained at 3.8%. However, wage growth expanded 3.2%, below an expected gain of 3.4%.
The sector is at an inflection point as it heads into Q1/19 LPS (loss-per-share) “earnings” season.
While today’s better-than-expected jobs report point to a growing economy, unburdened by the signals ... often mentioned of … recession, that doesn’t mean that stock markets or "our" universe will rise!
The advance/decline line scenario of 45 covered companies:
- The open was positive with the A/DL to 29/13, 2 flats and 1 acquired (AST);
- The mid-day positive with an A/DL of 29/15 and 0 flat and 1 acquired;
- The close was positive with an A/DL of 31/12 and 1 flat and 1 acquired;
Pre-open post, “we have needs - good, bad, no or wait news is the best we get; never forgetting which conference presentations (sarcasm)”
My pre-open indications: 6 HITs and 1 MISS
- bluebird bio (BLUE) closed up +$4.40 – miss;
- CRISPR Therapeutics (CRSP) closed up +$0.27 – hit;
- Editas Medicine (EDIT) closed up +$0.81 – hit;
- Intellia Therapeutics (NTLA) closed up +$0.2 – hit;
- ReNeuron Group (RENE.L) closed down -$6.50 – hit;
- Sangamo Therapeutics (SGMO) closed up +$0.44 – hit;
- Verastem Oncology (VSTM) closed up +$0.02 – hit;
Cell and gene therapy company’s worst-performers were:
- RENE.L (-$6.50), QURE (-$1.530, AGTC (-$0.17), ONCE (-$0.15) and BLFS (-$0.10)
- BLUE (-$5.14), IONS (-$2.74), RARE (-$1.98), SGMO (-$0.89) and VYGR (-$0.86)
- RENE.L (-$2.00), ONCE (-$1.11), RGNX (-$0.54), ALNY (-$0.51) and FIXX (-$0.36)
- RENE.L (-$1.50), QURE (-$0.40), STML (-0.12), VCEL (-$0.12) and MDXG (-$0.10)
- ALNY (-$1.62), SAGE (-$1.20), BOLD (-$1.19), BLFS (-$0.28) and CRSP (-$0.27)
Sector equities posting gains were:
- SAGE (+$5.89), BLUE (+$4.40), RARE (+$3.13), IONS (+$2.84) and GBT (+$1.77)
- RENE.L (+$33.00), QURE (-$3.52), BMRN (-$0.49), BOLD (+$0.37) and FIXX (+$0.19)
- GBT (+$3.71), SGMO (+$0.74), CLLS (+$0.87), ADVM (+$0.25) and MDXG (+$0.16)
- SGMO (+$2.76), RARE (+$2.63), SAGE (+$2.48), CRSP (+$2.45) and BLUE (+$1.82)
- RENE.L (+$22.00), MDXG (+$0.20), MESO (+$0.28), FIXX (+$1.41) and STML (+$0.55)
Tonight’s percentage (%) indicators:
- Range of the 31 upside was +0.24% (HSGX +$0.0003) to +3.66% (SAGE) while the 12 downside ranged from -0.05% (VYGR) to -4.22% (RENE.L).
- 6 out of the 31 upside had higher (than the 3 month average) volume
- 1 out of the 12 downside experienced greater volume (than the 3 month average)
1 flat – ONVO – with 1 acquired: 1 (AST)
The iShares NASDAQ Biotechnology (IBB) indicator:
- Friday was up +1.66%;
- Thursday was down -0.41%;
- Wednesday was up +0.59%;
- Tuesday was up +0.81 %;
- Monday was up +0.10 %;
- Last Friday was up +2.14 %;
Friday closed POSITIVE with 12 decliners, 31 advancers, 1 flat and 1 acquired (AST);
Thursday closed NEGATIVE with 30 decliners, 14 advancers, 0 flat and 1 acquired (AST);
Wednesday closed POSITIVE with 16 decliners, 27 advancers, 1 flat and 1 acquired (AST);
Tuesday closed POSITIVE with 11 decliners, 32 advancers, 1 flat and 1 acquired (AST);
Monday (4/1) closed POSITIVE with 19 decliners, 23 advancers, 2 flats and 1 acquired (AST);
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.