July 16, 2019 6:21pm

It’s all about perception and what risks are under the surface as sentiment sinks

As to what might happen as earnings season ramps

Sector equities traded today - horrific or benign!

 

The Strange Case of Dr. Jekyll and Mr. Hyde might make for a great read, but it’s far less fun when the sector act like it’s their blueprint.

 

Markets and indexes:

  • Tuesday, the Dow closed down -23.53 points or -0.09% to 27,335.63
  • Monday, the Dow closed up +27.13 points or +0.10% to 27,359.16;

 

  • Tuesday, the S&P closed down -10.25 points or -0.34% at 3,004.04;
  • Monday: The S&P closed up +0.53 points or +0.02% at 3,014.30

 

  • The NASDAQ was down -35.29 or -0.43% to 8222.80
  • Monday: The NASDAQ was up +14.04 or +0.17% to 8258.18

 

Henry’omics:

Markets fell from record highs on Tuesday after President Trump cast doubt on the trade progress between China and the U.S.

  • President Trump said the two countries have a “long way to go” on trade, adding the U.S. can slap tariffs on an additional $325 billion worth of Chinese goods “if we want.”

Pharma earnings: Johnson & Johnson shares slipped 1.6% after the diversified healthcare company warned that competition from generic and copycat drugs could impact its Q3 results. Johnson & Johnson was the second-biggest drag on the S&P 500.

Sector equities dumped after yesterday’s positive close.

 

The percentage (%) indicators: 

  • Tuesday’s range of the 15 upside was +0.14% (KOOL) to +8.32% (CUR) while the 27 downside ranged from -0.06% (QURE) to -4.43% (BCLI);
  • Monday’s range of the 26 upside was +0.12% (RARE) to +11.79% (CLBS) while the 15 downside ranged from -0.05% (ONCE) to -4.88% ();

 

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Tuesday the IBB closed down -0.58% while the XBI closed down -0.84%
  • Monday the IBB closed up +0.53% while the XBI also closed up +0.36%

 

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

  • The open was positive with an A/DL of 23/19 with 1 flat and 2 acquired;
  • The mid-day was positive with an A/DL of 22/19 with 2 flats and 2 acquired;
  • The close was negative with an A/DL of 15/27 and 1 flat and 2 acquired;

 

Leading decliners were:

  • Sage Therapeutics (SAGE -$7.15 after Monday’s -$2.55);
  • Global Blood Therapeutics (GBT -$2.25);
  • bluebird bio (BLUE -$2.09 after Monday’s +$3.10);
  • BioMarin Pharmaceuticals (-$1.62 after Monday’s +$1.04);
  • Regenxbio (RGNX -$1.05);

Tuesday’s incliners:

  • ReNeuron (RENE.L +$7.50);
  • Alnylam Pharmaceuticals (ALNY +$1.45 after Monday’s+$1.25)
  • Homology Medicine (FIXX +$0.96);
  • Ultragenyx Pharmaceuticals (RARE +$0.55);
  • Adverum Biotechnologies (ADVM +$0.43)

 

Upside volume stats:  to compare

  • Tuesday: 4 out of the 15 upside had higher than the 3 month average volume;
  • Monday: 3 out of the 26 upside had higher than the 3 month average volume;

Downside volume stats: NOTICE

  • Tuesday: 3 out of the 27 downside had higher than the 3 month average volume;
  • Monday: 3 out of the 15 downside had higher than the 3 month average volume;

 

1 flat – BSTG with 2 acquired (AST & OSIR) and the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed

 

July’s sessions and the beginning of Q3:

Tuesday closed NEGATIVE with 27 decliners, 15 advancers, 1 flat and 2 acquired (AST & OSIR);

Monday closed POSITIVE with 15 decliners, 26 advancers, 2 flats and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 22 decliners, 21 advancers, 0 flats and 2 acquired (AST & OSIR);

Thursday closed NEGATIVE with 26 decliners, 14 advancers, 3 flats and 2 acquired (AST & OSIR);

Wednesday closed POSITIVE with 25 decliners, 16 advancers, 2 flat and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 29 decliners, 13 advancers, 1 flat and 2 acquired (AST & OSIR);

Monday closed NEGATIVE with 24 decliners, 18 advancers, 1 flat and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 23 decliners, 19 advancers, 1 flat and 2 acquired (AST & OSIR);

Thursday was a holiday;

Wednesday closed POSITIVE with 10 decliners, 31 advancers, 2 flat and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 30 decliners, 11 advancers, 2 flat and 2 acquired (AST & OSIR);

Monday closed NEGATIVE with 23 decliners, 19 advancers, 1 flat and 2 acquired (AST & OSIR);

 

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.