June 3, 2019 7:58am
Futures fluctuate, still lower as Trump arrives in U.K.
Significance of the week: 2019 American Society of Clinical Oncology (ASCO) Annual Meeting in Chicago, IL
Pre-open indications: 1 BUY, 1 SELL and 3 TRADES
The take-away, don’t dwell on what’s happened in May and follow RMi’s lesson of investing in those who guide and then meet short-term expectation
Re-framing the main takeaway … pricing, volume and volatility!
Dow futures are DOWN -0.22% (-55 points), S&P futures are DOWN -0.22% (-6 points) and NASDAQ futures are also DOWN -0.40% (-29 points)
Futures on the S&P and NASDAQ were both seen slightly lower.
- Tensions between the U.S. and China escalated over the weekend, as the two countries clashed over trade, technology and security issues.
European stocks traded lower, as fears over the current state of global trade intensified, causing international markets to stumble.
Asia Pacific markets were mixed; Australia, China, Japan and Hong Kong closed lower while South Korea added value;
Data docket: a final reading of manufacturing PMI (Purchasing Managers’ Index) data for May will be released at around 9:45 a.m. ET. The Institute for Supply Management (ISM) manufacturing index for May, construction spending figures for April and latest light vehicle sales data will all follow slightly later in the session.
Volatility is STILL a threat; never forgetting, this is a trading market and the sector is subject to all those computer networks!
U.S. stock index futures were sharply lower Monday morning, as market participants monitor an intensifying trade dispute between the world’s two largest economies.
From Friday night’s post, “it’s good that May is over, RIP; Friday’s declines added to a stifling week and month for sector equities.”
- The NASDAQ was down -114.57 points or -1.51% to 7,453.15;
- The close was negative with an A/DL of 12/30 and 1 flat and 2 acquired;
- Friday’s range of the 12 upside was +0.23% (BLFS) to +12.04% (HSGX) while the 30 downside ranged from -0.08% (SAGE) to -31.35% (ONVO);
- 5 out of the 12 upside had higher than the 3 month average volume;
- 3 out of the 30 downside had higher than the 3 month average volume;
- The iShares NASDAQ Biotechnology (IBB) indicator: closed down -1.78%;
Q2/19 so far:
- In May, there were 14 negative, 1 holiday and 8 positive closes;
- In April, there has been 10 positive and 11 negative closes;
Companies in my headlights – It’s your decision; I provide an idea and context: post earnings release:
- Aduro Biotech (ADRO)
- Bellicum Pharmaceuticals (BLCM)
- Stemline Therapeutics (STML)
BioMarin Pharmaceuticals (BMRN) closed down -$1.14 to $82.24 after Thursday’s +$0.43 to $83.38, Wednesday’s $82.95, Tuesday’s $84.50, Monday’s market close and the previous Friday’s +$2.10 to $89.03. BMRN's gene therapy for hemophilia A dropped potentially life-threatening bleeding events from more than a dozen to zero. On the surface, BMRN's disclosures around valrox Tuesday were positive. BMRN said a late-stage clinical trial found that eight patients met pre-specified criteria for Factor VIII activity levels (Ron Leuty, SFBT). That study and a P1/2 study dropped the median number of annual bleeding events to zero after three years, as valrox could hit the market by the end of 2020. The drop in the number of bleeding events is significant, both from a statistical point of view and for patients. – Maintaining BUY;
Needing some upside:
CRISPR Therapeutics (CRSP) closed down -$1.02 to $35.57 after Thursday’s -$0.27 to $36.59, Wednesday’s +$0.14 to $36.86, Tuesday’s -$0.28 to $36.72, last Monday’s was a holiday and the previous Friday’s $37.00 as May 1st opened at $38.82 – TRADE;
Editas Medicine (EDIT) closed down -$0.68 to $20.55 after Thursday’s +$0.08 top $21.23, Wednesday’s -$0.28 to $21.15, Tuesday’s -$0.29 to $21.43, last Monday’s holiday and the previous Friday’s $21.71– TRADE;
Intellia Therapeutics (NTLA) closed down -$0.62 to $13.88 after Thursday’s +$0.03 to $14.50, Wednesday’s -$0.29 to $14.47, Tuesday’s -$0.09 to $14.76, Monday’s market holiday and the previous Friday’s $14.85, - TRADE;
ReNeuron (RENE.L) closed at $305.00 after Thursday’s -$5.00, Wednesday’s -$15.00 to $300.00, Tuesday’s +$10.00 to $315.00, Monday’s market holiday and the previous Friday’s +$20.00 to $305.00. RENE.L has a time differential trading with a market downside of -$6.00 –BUY to 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.