November 1, 2019 9:14am

The jobs numbers tops expectation, but there’s another report that could be much more important; ISM manufacturing data since this sector has been in decline

November could bring “our’ cell and gene therapy universe some upside as earnings season dissolves with post share pricing appreciation

October left us with 10 positive, 1 neutral and 14 negative closes of my 45 company portfolio

When you’re on a roller coaster, the only thing you can be sure of is you’ll end up back where you started …


My version of the morning’s numbers is written to be informative than just about changes to fundamentals; it’s what happened or will beyond the headline and what could happen to the future


Dow futures are UP +0.42% (+114 points), S&P futures are UP +0.42% (+13 points) and NASDAQ futures are UP +0.43% (+35 points)


U.S. stock index futures moved higher ahead of key readings on monthly jobs numbers and the manufacturing sector;

European markets moved higher with the pan-European Stoxx 600 being up +0.4% during the mid-morning with most sectors and major bourses in positive territory;

Asia Pacific stocks mostly advanced on the first trading day of November amid renewed concerns over the potential for a long-term trade deal between China and the U.S.


Data Docket: non-farm payroll and unemployment figures out at 8:30 a.m. ET. Investors will also be watching manufacturing data due out later in the session



With October ended, a few earnings being released – Friday should or could see the oversold being reset with some appreciation – if not, we are truly in trouble re sentiment – 15 – so far releases due in the next two (2) weeks.

An update on manufacturing activity today could provide a much more useful picture of the economy than the October employment report, which is expected to be unusually weak due to the General Motors strike. ISM manufacturing data is expected to show a contraction in activity in October, for a third month in a row. Manufacturing has been at the heart of the economy’s sluggishness, with a drop in business investment a big reason for the third quarter’s sluggish 1.9% growth pace <CNBC>.

Jobs, on the other hand, have been strong, as has the consumer, the biggest driver of the economy.

Overall market sentiment seems to be attuned to trade relations between the U.S. and China. Chinese officials have been casting doubt over the possibility of a long-term trade deal with the U.S. The U.S. and the European Union have held an initial conversation last week about their trade relationship <CNBC>.


Thursday night’s newsletter heading: “The sector risks are still to the downside as earnings season continues and ramps up next week, volume continues to display truncated sentiment.”

  • The NASDAQ closed DOWN -11.61 points (-0.14%);
  • The IBB closed down -0.25% while the XBI closed down -0.17%;
  • The close was negative with an A/D line of 17/24, 1 flat, 1 reversed merged (HSGX) and 2 acquired;
  • The range of the 18 upside was +0.28% (BCLI) to +11.76% (ADRO +$0.12) while the 22 downside ranged from -0.39% (XON) to -16.94% (CUR);
  • 3 out of the 17 upside had higher than the 3 month average volume;
  • 7 out of the 24 downside had higher than the 3 month average volume;


  • November is here …
  • October registered 10 positive, 1 neutral and 14 negative closes
  • September, there were 1 holiday, 11 negative, 7 positive and 2 non reported sessions;


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

*** I can’t change my “tune” …  be mindful of upcoming quarterly results  and their effect upon share pricing … BUY and get trampled in the coming sessions or SELL into strength or just HOLD and wait to resolve relieve the earnings estimates and expectation anxiety.



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.