August 1, 2019 9:18pm

Too many … which is affecting share pricing in Q2 earnings’ results

Pre-open indications: 1 HIT and 0 MISS

Are the facts so hard to fathom, there is a LACK of CONFIDENCE and CONVICTION in “our” universe’s journey through the Q2/19’s cycle – so far!

 

 

During “earning’s” season, traders vote by buying and selling shares, and in the short run, the trades happen at the levels dictated by whether the buyers or sellers are motivated by meeting “street” expectation  versus LPS (loss-per-share) as compared to net income.

 

Markets and indexes:

  • The Dow closed down -280.85  points or -1.05% to 26,583.42;
  • The S&P closed down -26.82 points or -0.90% at 2,953.56;
  • The NASDAQ was down -64.30 or -0.79% to 8,111.12;

 

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

  • Thursday the IBB closed up +0.68% while the XBI closed up +0.27%
  • Wednesday the IBB closed down -0.66% while the XBI closed down -1.23%
  • Tuesday the IBB closed up +0.90% while the XBI closed up +1.51%
  • Monday the IBB closed up +0.09% while the XBI closed down -0.22%

 

Henry’omics:

Market indexes fell on Thursday abruptly reversing early gains after U.S. President Donald Trump put concerns about the U.S.-China trade war back in the spotlight, tweeting that he would impose an additional 10% tariff on $300 billion in Chinese imports.

Having spent most of the session on track for their best day since June, all three major U.S. stock indices took sudden U-turns as investors quickly turned into sellers after the tweet <Reuters>.

The CBOE Volatility Index, a gauge of investor anxiety, shot to its highest reading since 6/4.

Investors now look to Friday's release of the Labor Department's closely-watched jobs report.

 

Pre-open post, “futures fluctuate as focus continues to earnings; the oversold are conspicuous after yesterday’s 37 of 45 (covered) declines.”

I also stated, “Be prepared for a bounce back yet, quarterly results are rolling forward at a quicker pace. Volume has been low in regard to the pricing declines as compared to the percentage (%) movements.”

 

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

  • The close was positive with an A/D Line of 19/22 and 2 flats and 2 acquired;

 

Pre-open indications: 1 HIT and 0 MISS

  • ReNeuron (RENE.L ) closed up +$1.00 – hit;

 

Thursday’s decliners:

  • bluebird bio (BLUE -$3.08 after Wednesday’s -$1.81,  Tuesday’s -$3.78 and Monday’s -$2.92;
  • Alnylam Pharmaceuticals (ALNY -$2.23);
  • Regenxbio (RGNX -$0.96 after Wednesday’s -$1.50, Tuesday’s-$1.57 and Monday’s -$2.25);
  • Fate Therapeutics (FATE -$0.70);
  • Adverum (ADVM -$-0.64)

Thursday’s incliners:

  • Spark Therapeutics (ONCE +$2.58 after Wednesday’s +$0.79);
  • Sage therapeutics (SAGE +$2.07);
  • uniQure (QURE +$1.95 after Wednesday’s -$1.31, Tuesday’s -$2.07 and Monday’s  -$3.53);
  • CRISPER Therapeutics (CRSP +$1.87);
  • BioMarin Pharmaceuticals (BMRN +$1.68 after Wednesday’s -$1.68 and Tuesday’s +$1.18);

 

The percentage (%) indicators: 

  • Thursday’s range of the 22 upside was +0.14% (VYGR) to +6.06% (ADRO) while the 19 downside ranged from -0.06% (NTLA) to -9.53% (PSTI);
  • Wednesday’s range of the 6 upside was +0.21% (RENE.L) to +4.90% (VSTM) while the 37 downside ranged from -0.06% (CRSP) to -7.56% (BTX);
  • Tuesday’s 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);
  • Monday’s range of the 11 upside was +0.34% (EDIT) to +7.11% (PSTI) while the 31 downside ranged from -0.26% (CLLS) to -7.95% (CUR -$0.19);

 

Upside volume stats:  to compare

  • Thursday: 4 out of the 22 upside had higher than the 3 month average volume;
  • Wednesday: 1 out of the 6 upside had higher than the 3 month average volume;
  • Tuesday: 4 out of the 26 upside had higher than the 3 month average volume;
  • Monday: 2 out of the 11 upside had higher than the 3 month average volume;

Downside volume stats: NOTICE

  • Thursday: 8 out of the 19 downside had higher than the 3 month average volume;
  • Wednesday: 8 out of the 37 downside had higher than the 3 month average volume;
  • Tuesday: 4 out of the 18 downside had higher than the 3 month average volume;
  • Monday: 6 out of the 31 downside had higher than the 3 month average volume;

 

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

 

August’s sessions:

Thursday closed POSITIVE with 19 decliners, 22 advancers, 2 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.