May 6, 2019 7:09am

While a busy week is ahead in quarterly earnings; fourteen (14) of my covered companies should provide an even greater shift in sentiment to the downside

The 6 W’s: Who, what, where, when, why and what of it … the real question is who is going to report what?

Once we get through Q1, LPS (loss-per-share) financial results, it will be easier for investors to recognize a short-term view; but my fear is that Q1 numbers aren't going to look much better than the Q4/18 numbers.

Dow futures are DOWN -1.85% (-487 points), S&P futures are DOWN -1.70% (-51 points) and NASDAQ futures are DOWN -2.20% (-175 points)

 

Dow futures dropped 500 points which implied an opening decline of about 480 points. S&P 500 futures and Nasdaq-100 Index futures are also dropping;

European markets sharply lower as US-China trade tensions escalate;

Chinese stocks plummeted following a re-escalation in U.S.-China trade tensions as President Trump declared an impending increase in tariffs rates on $200 billion of Chinese goods. Markets in Japan and South Korea were closed on Monday for holidays.

 

Monday’s ETF indications in the pre-market:

The iShares Nasdaq Biotechnology (IBB) is NOT indicating;

The SPDR S&P Biotech ETF (XBI) is NOT indicating;

The Health Care Select Sector SPDR ETF (XLV) is NOT indicating;

The iShares Russell 2000 (IWM) is indicating a NEGATIVE -1.6% DOWNSIDE;

 

Henry’omics:

A severe sell-off will start the week after President Trump said on Sunday that the U.S. will hike tariffs on goods imported from China, casting doubt on recent optimism that the world’s two largest economies were close to a resolution to their trade battle.

  • China is considering cancelling its trade talks with the U.S. this week in light of Trump’s latest threats. Citing a source, the Journal said Beijing had been surprised by the new threats <Wall Street Journal>.

From Friday’s closing bell post, “the sector traversed through the forest of the oversold to experience sunlight. Friday’s session “shook-out” some of the negative sentiment as the NASDAQ “rolled” after job’s report although volume was still low.”

  • In May, there were 2 negative and 1 positive closes;
  • In April, there has been 10 positive and 11 negative closes;
  • In March’s 21 sessions, there were 7 negative and 14 positive closes;

May’s first week’s sessions:

  • Friday closed POSITIVE with 4 decliners, 37 advancers, 2 flat and 2 acquired (AST & OSIR);
  • Thursday closed NEGATIVE with 23 decliners, 17 advancers, 3 flat and 2 acquired (AST & OSIR);
  • Wednesday (5/1) closed NEGATIVE with 30 decliners, 12 advancers, 1 flat and 2 acquired (AST & OSIR);

 

Companies in my headlights – It’s your decision; I provide an idea and context:

The week’s Q1 reporting includes:

Ultragenyx Pharmaceuticals (RARE) – 5/6;

Applied Genetic Technologies AGTC - 5/7;

Vericel (VCEL) – 5/7;

Audentes Therapeutics (BOLD) – 5/7;

Editas Medicine (EDIT) – 5/7;

Fate Therapeutics (FATE) – 5/7;

Regenxbio (RGNX) – 5/7;

Athersys (ATHX) – 5/8;

AxoGen (AXGN) – 5/8;

Sangamo Therapeutics (SGMO) – 5/8;

Caladrius Biosciences (CLBS) – 5/9;

Intrexon (XON) – 5/9

BioTime (NYSEMKT: BTX) – 5/9;

Ions Pharmaceuticals (IONS) – 5/9;

 

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.