June 15, 2019 4:50pm
Thursday’s gold became Friday’s tin
Saturday news: Editas Medicine (EDIT closed -$0.78 or -3.47%) announced results from a follow-up study to assess two different CRISPR genome editing strategies, one targeting the BCL11A erythroid enhancer (BC11Ae) and one targeting the beta-globin locus, for the treatment of sickle cell disease and beta-thalassemia. EDIT reported the data at the 24th Congress of the European Hematology Association in Amsterdam.
Pre-open indications: 2 HITs and 3 MISS (2 by pennies)
No sigh of relief in volatility
The “machines” pushed the sector into a tantrum as the market whipped itself with geopolitical issues but what’s more problematic is the fact we’re in a liquidity vacuum.
Markets and indexes:
- The Dow closed flat at 26,107.93
- The S&P closed down -4.66 points or -0.15% at 2,886.98
- The NASDAQ was down 40.47 points or -0.52% to 7,796.66
Sector equities declined on Friday after advancing on Thursday following Wednesday’s return to the upside overcoming Tuesday’s oversold condition post Monday’s neutral subsequent to last Thursday and Friday’s gains.
Sentiment on Wall Street was also dampened by disappointing industrial data from China. Industrial production in China rose 5% last month on a year-over-year basis; the slowest pace of growth in 17 years as Chinese shares fell overnight following the data release. The Shanghai Composite lost 1% while the Shenzhen A Shares index slid 1.8% <CNBC>.
- The major U.S. stock indexes posted solid gains in the previous session, adding to this month’s sharp rally.
- The Dow, S&P 500 and NASDAQ are all up more than 4% for June through Friday’s close. The major indexes also posted back-to-back weekly gains.
While U.S. retail sales rose 0.5% in May, according to the Commerce Department. That was below the 0.6% gain expected by economists polled by Refinitiv. However, April retail sales were revised higher. May sales were also up 0.5% when excluding auto, gas building materials and food.
Anticipation versus expectation:
- Investors are bracing for next week's Fed meeting in light of recent market expectations that the U.S. central bank could cut interest rates as much as three times this year.
- Some say stocks are primed for a selloff should the Fed fail to take an even more dovish tilt.
- The S&P 500 index has registered a second straight week of gains on Friday, largely on the rate cut hopes.
Markets are betting that the Fed is going to cut rates, probably not in June but soon. The ongoing trade battle between the U.S. and China also gives investors reason to play it safe ahead of the weekend.
The conundrum, the S&P 500 posted 37 new 52-week highs and 3 new lows; the Nasdaq Composite recorded 47 new highs and 82 new lows.
Friday’s advance/decline line scenario of 45 covered companies:
- The mid-day was negative with an A/DL of 11/29 and 2 flats and 2 acquired;
- The close was negative with an A/DL of 11/30 and 2 flats and 2 acquired;
Pre-open post: “: investors consider time horizons, traders say forget the near and long-term. Geo-political events are weighing upon this market and its participants.”
Pre-open indications: 2 HIT and 3 MISS
- Applied Genetic Technologies (AGTC) closed down -$0.02 – miss;
- BioLife Solutions (BLFS) closed down -$0.07 – miss;
- bluebird bio (BLUE) closed down -$6.28 – miss;
- Global Blood Therapeutics (GBT) closed down -$3.54 - hit;
- ReNeuron (RENE.L) closed up +$20.00 – hit;
News (from the title):
In this EDIT study, NBSGW mice received an infusion of human CD34+ cells which had been edited either at the BCL11Ae or at the beta-globin locus. In vivo-derived erythroid cells from BCL11Ae-edited CD34+ hematopoietic stem/progenitor cells had reduced total indels and increased non-productive indels as compared to other tested lineages, a phenomenon not observed with beta-globin locus editing. Additionally, further optimization of nuclease and guide RNA combinations led to fetal hemoglobin expression of approximately 40 percent in the beta-globin locus-edited erythroid cells. Based on the data, Editas Medicine has initiated IND-enabling activities for EDIT-301, an experimental CRISPR medicine designed to durably treat sickle cell disease and beta-thalassemia by editing the beta-globin locus.
What’s happening in the share pricing casino?
Worst-performers (bottom 5) were:
- Friday: BLUE (-$6.28), GBT (-$3.54), ONCE (-$1.83), IONS (-$1.79) and SAGE (-$1.58); ` `
- Thursday: RENE.L (-$2.50), ONCE (-$0.60), IONS (-$0.56), RARE (-$0.17) and MESO (-$0.11);
- Wednesday: RENE.L (-$12.500, BLUE (-$1.00), GBT (-$0.99), SAGE (-$0.87) and RARE (-$0.40);
- Tuesday: QURE (-$9.01), SAGE (-$3.04), RARE (-$1.77), RGNX (-$1.61) and GBT (-$1.43);
- Monday: RENE.L (-$25.00), ONCE (-$9.14), BLUE (-$8.12), SAGE (-$3.20) and GBT (-$2.71);
Posting gains (top 5) were:
- Friday: RENE.L (+$20.00), QURE (+1.34), FATE (+$0.25), AXGN (+$0.16) and VSTM (+$0.13);
- Thursday: SAGE (+$7.11), BLUE (+$6.48) GBT (+$0.70), RGNX (+$2.58) and QURE (+$1.30);
- Wednesday: QURE (+$3.94), BMRN (+$1.22), AXGN (+$1.18), IONS (+$1.08) and VCEL (+$0.83);
- Tuesday: RENE.L (+$15.000, XON (+$0.45), BLUE (+$0.15), MESO (+$0.14) and ADRO (+$0.06);
- Monday: CRSP (+$1.50), RARE (+$0.57), BMRN (+$0.470, BLCM (+$0.47) and ALNY (+$0.32);
Upside volume stats:
- Friday: 2 out of the 11 upside had higher than the 3 month average volume;
- Thursday: 7 out of the 32 upside had higher than the 3 month average volume;
- Wednesday: 6 out of the 26 upside had higher than the 3 month average volume;
- Tuesday: 3 out of the 7 upside had higher than the 3 month average volume;
- Monday: 6 out of the 21 upside had higher than the 3 month average volume;
Downside volume stats:
- Friday: 8 out of the 30 downside had higher than the 3 month average volume;
- Thursday: 2 out of the 10 downside had higher than the 3 month average volume;
- Wednesday: 3 out of the 17 downside had higher than the 3 month average volume;
- Tuesday: 11 out of the 32 downside had higher than the 3 month average volume;
- Monday: 9 out of the 21 downside had higher than the 3 month average volume;
The week’s percentage (%) indicators:
- Friday’s range of the 11 upside was +0.30% (PSTI) to +10.24% (VSTM) while the 30 downside ranged from -0.39% (BLFS) to -6.15% (GBT);
- Thursday’s range of the 32 upside was +0.06% (BMRN) to +9% (BTX) while the 10 downside ranged from -0.29% (RARE) to -2.82% (PSTI);
- Wednesday’s range of the 26 upside was +0.02% (CRSP) to +36.41% (HSGX +$0.08) while the 17 downside ranged from -0.15% (MESO) to -5.10% (RENE.L);
- Tuesday’s range of the 7 upside was +0.13% (BLUE) to +10.6% (HSGX +$0.02) while the 32 downside ranged from -0.02% (BMRN) to -12.02% (QURE);
- Monday’s range of the 21 upside was +0.35% (IONS) to +25.06% (ONVO +$0.11) while the 21 downside ranged from -0.63% (VYGR) to -9.80% (RENE.L);
1 flat – BSTG with 2 acquired (AST & OSIR) and the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed
The iShares NASDAQ Biotechnology (IBB) indicator:
- Friday closed down -0.93%
- Thursday closed up +0.75%
- Wednesday closed up +0.61%
- Tuesday closed down -0.49%
- Monday closed down -0.60%
- Last Friday closed up +1.62%;
Friday closed NEGATIVE with 30 decliners, 11 advancers, 2 flat and 2 acquired (AST & OSIR);
Thursday closed POSITIVE with 10 decliners, 32 advancers, 1 flat and 2 acquired (AST & OSIR);
Wednesday closed POSITIVE with 17 decliners, 26 advancers, 0 flats and 2 acquired (AST & OSIR);
Tuesday closed NEGATIVE with 32 decliners, 7 advancers, 4 flats and 2 acquired (AST & OSIR);
Monday closed NEUTRAL with 21 decliners, 21 advancers, 1 flat and 2 acquired (AST & OSIR);
Friday closed POSITIVE with 10 decliners, 31 advancers, 2 flats and 2 acquired (AST & OSIR);
Thursday closed NEGATIVE with 37 decliners, 5 advancers, 1 flat and 2 acquired (AST & OSIR);
Wednesday closed NEGATIVE with 24 decliners, 17 advancers, 2 flat and 2 acquired (AST & OSIR);
Tuesday closed POSITIVE with 10 decliners, 32 advancers, 1 flat and 2 acquired (AST & OSIR);
Monday closed POSITIVE with 17 decliners, 25 advancers, 1 flat and 2 acquired (AST & OSIR);
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;
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.