August 6, 2019 8:14am

Futures recover, earnings’ results continue, the XBI (+0.49%) spins upward as the oversold shall rise from yesterday’s depths

Earnings’ central: Audentes Therapeutics (BOLD) with Ionis Pharmaceuticals (IONS), Fate Therapeutics (FATE) and Editas Medicine (EDIT) 

Framing the week’s headlines, market disruption and earnings!

 

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) reporting initiate tumultuous value propositions. 

 

Dow futures are UP +0.97% (+248 points), S&P futures are UP +0.96% (+28 points) and NASDAQ futures are UP +1.14% (+85 points)

 

U.S. stock index futures are positive early Tuesday morning after China’s central bank indicated it wanted its currency to trade higher against the dollar;

European stocks turned positive after China eased trade retaliation with the pan-European Stoxx 600 jumping + 0.4%;

Asia Pacific stocks tumble amid US-China trade uncertainty paring earlier losses but still saw declines after Beijing confirmed it is suspending agricultural product purchases in response to new American tariffs;

 

Data docket: JOLTS (Job Openings and Labor Turnover Survey) report at 10 a.m. ET.

 

Henry’omics:

What went down yesterday will uptick up … today!

Overnight, China’s central bank set the yuan’s official reference point at stronger than the key 7 yuan-to-the-dollar point on Tuesday. The move calmed currency markets, initially rocked by fears the U.S.-China trade war was devolving into a currency war <CNBC>.

After U.S. equity markets saw their worst trading day of 2019 on Monday.

From Monday’s evening post, “another wipe-out of sector value; how many must we live through as volume stagnates? The Cboe Volatility Index (VIX), widely considered to be the best fear gauge in the market, jumped 36% to above 23.”

•             The NASDAQ was down -278.03 or -3.74% to 7,726.04;

•             The IBB closed down -2.65% while the XBI closed down-3.25%;

•             The close was negative with an A/D Line of 2/41 and 0 flat and 2 acquired;

•             The range of the 2 upside was +0.63% (ADVM) to +1.02% (KOOL +$0.03) while the 41 downside ranged from -0.21% (ONCE) to -9.80% (CRSP);

•             1 out of the 2 upside had higher than the 3 month average volume;

•             18 out of the 41 downside had higher than the 3 month average volume;

August has 1 POSITIVE and 2 NEGATIVE closes, so far

 

Companies in my headlights – It’s your decision; I provide an idea and context:

***The oversold shall rise from the depths but, be careful of those reporting Q2 – today ***

 

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.