July 31, 2019 7:50am
Waiting for the Fed decision; is it a fait accompli and priced into the market?
News: Roche (RHHBY) and Spark Therapeutics (ONCE) announced another extension until September 3rd of the Swiss drug maker's $4.3 B takeover offer for the U.S. gene therapy company as regulatory reviews in the U.S. and Britain continue with terms and conditions unchanged.
Pre-open indications: 1 BUY and 3 SELL
There’s a struggle between trust and conviction. Trust is something you can rely on, beyond certainty. Conviction doesn't demand that others play by the rules with some principle of reliability.
The remainder of the month’s trading sessions will be critical for the RegMed sector which will establish whether expectation of August and quarter’s (Q2) initiate a slow downdraft.
Dow futures are +0.25% (+68 points), S&P futures are UP +0.18% (+6 points) and NASDAQ futures are UP +0.38% (+31 points)
U.S. stock index futures were higher as market participants braced for the outcome of the Fed’s meeting later in the session;
European stocks traded around the flat line as investors await The U.S. interest rate decision as the pan-European Stoxx 600 was little changed by mid-morning;
Asia Pacific stocks fell wait for U.S. data and a typhoon hits Hong Kong while Japan and mainland China indexes fell;
Data docket: ADP payrolls for July will be released at around 08:15 a.m. ET. Employment cost index figures for the second quarter and Chicago Purchasing Manager Index (PMI) data for July will follow slightly later in the session.
The news of the day re the Fed, market expectations point to a quarter-point rate cut. The Fed is set to deliver its decision at 2:00 p.m. ET, with Fed chair Powell is scheduled to hold a press conference at 2:30 p.m. ET.
From Tuesday’s evening post, “just another rotation as the cycle continues to roll up and down. Volume remains low while percentage movements stay truncated.”
• The NASDAQ was down -19.72 or -0.24% to 8,273.61;
• Tuesday the IBB closed up +0.90% while the XBI closed up +1.51%;
• The close was positive with an A/D Line of 26/18 and 1 flat and 2 acquired;
• The range of the 26 upside was +0.57% (ONCE) to +8.99% (SLDB) while the 18 downside ranged from -0.07% (ONVO) to -6% (ATHX);
• 4 out of the 26 upside had higher than the 3 month average volume;
• 4 out of the 18 downside had higher than the 3 month average volume;
Q3/19 so far: there were 9 positive, 1 holiday and 12 negative closes;
Companies in my headlights – It’s your decision; I provide an idea and context:
Pluristem (PSTI closed up +$+0.18 after Monday’s $0.36, Friday’s +$0.63 and Thursday’s +$0.27 to post 1-for-10 reverse) – expect an offering in the future - Maintaining SELL;
Solid Bioscience (SLDB closed up +$0.49 after Monday’s -$0.53 and Friday’s +$1.49 after a private placement) – Maintaining SELL;
Editas Medicine (EDIT closed up +$0.54 after Monday’s -$0.09 and Friday’s +$1.26) chart looks very “peaky” – Maintaining SELL;
ReNeuron (RENE.L closed down -$1.50 after Monday’s +$5.00 and has a positive pre-market timing differential of +3.84 – BUY ;
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.