June 17, 2019 7:29pm

However, this week is all about the Fed

Pre-open indications: 6 HITs and 1 MISS (by pennies)

Today’s magic words – news of possible and actual acquisitions


 

A 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 +22.92 points or +0.09% at 26,112.53
  • The S&P closed up +2.69 points or +0.09% at 2,889.67
  • The NASDAQ was up +48.37 points or +0.62% to 7,845.02

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Henry’omics:

Sector equities edged higher on Monday, supported by uniQure NV (QURE), Sage Therapeutics (SAGE) and bluebird bio (BLUE) as investors awaited a key Fed meeting that is expected to lay the groundwork for an interest rate cut later this year.

Note from this a.m.’s title - Array Biopharma (ARRY) surged nearly 57% after Pfizer (PFE) agreed to buy the drug maker for $10.64 billion to beef up its cancer portfolio. PFE was mostly unchanged.

The Fed is expected to leave borrowing costs unchanged at its two-day policy meeting starting Tuesday, but its statement will provide insight into the impact of the U.S.-China trade war, President Trump's calls for a rate cut and weaker economic data.

 

Monday’s advance/decline line scenario of 45 covered companies:  

  • The open was positive with an A/DL of 31/11 with 1 flat and 2 acquired;
  • The mid-day was positive with an A/DL of 33/8 with 2 flats and 2 acquired;
  • The close was positive with an A/DL of 32/10 and 1 flat and 2 acquired;

 

Pre-open post: “there are cracks in the downside glass. Markets tank, but they recover; the sector will shudder, but it adjusts as is always does.”

 

Pre-open indications: 6 HIT and 1 MISS

  • Applied Genetic Technologies (AGTC) closed up +$0.11 – hit;
  • BioLife Solutions (BLFS) closed down -$0.02 – miss;
  • bluebird bio (BLUE) closed up +$5.04 – hit;
  • Global Blood Therapeutics (GBT) closed up +$0.26 – hit;
  • Homology Medicines (FIXX) closed up +$0.58 – hit;
  • ReNeuron (RENE.L) closed down -$7.50 – hit;
  • uniQure N.V. (QURE) closed up +8.59 – hit;

 

Worst-performers (bottom 5) were:

  • Monday: RENE.L (-$7.50), CLBS (-$0.29), KOOL (-$0.16), MESO (-$0.137) and HSGX (-$0.059);
  • Friday: BLUE (-$6.28), GBT (-$3.54), ONCE (-$1.83), IONS (-$1.79) and SAGE (-$1.58);        `              `

Posting gains (top 5) were:

  • Monday: QURE (+$8.59), SAGE (+$5.52), BLUE (+$5.04), CRSP (+$3.80) and RARE (+$3.74);
  • Friday: RENE.L (+$20.00), QURE (+1.34), FATE (+$0.25), AXGN (+$0.16) and VSTM (+$0.13);

 

Upside volume stats: 

  • Monday: 10 out of the 33 upside had higher than the 3 month average volume;

Downside volume stats:

  • Monday: 3 out of the 10 downside had higher than the 3 month average volume;

 

The week’s percentage (%) indicators: 

  • Monday’s range of the 33 upside was +0.04% (PSTI) to +25% (VSTM +$0.35) while the 10 downside ranged from -0.11% (BLFS) to -20% (HSGX -0.059);
  • 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);

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:

  • Monday closed up +2.96%
  • Friday closed down -0.93%
  • Thursday closed up +0.75%
  • Wednesday closed up +0.61%
  • Tuesday closed down -0.49%
  • Last Monday closed down -0.60%

 

June’s sessions:

Monday closed POSITIVE with 10 decliners, 32 advancers, 1 flat and 2 acquired (AST & OSIR);

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.