May 7, 2020 8:47am

Pre-open indications:  4 BUYs and 2 SELLs

Quarterly results expected today: Brainstorm Cell Therapeutics (BCLI), Intellia Therapeutics (NTLA), Sage Therapeutics (SAGE), Caladrius Biosciences (CLBS), Editas Medicine (EDIT), Regenxbio (RGNX)

What I provide is an “intelligence daily” to inform the RegMed/cell and gene therapy sector and its investors utilizing my focus on indication and warning analysis. Check the BOTTOM LINE <read more>

Dow future are UP +1.42% (+333 points), S&P futures are UP +1.54% (+44 points) and NASDAQ futures are UP +1.45% (+130 points)

 

U.S. stock-index futures were trading solidly higher, as investors prepared for another sobering weekly jobless claims and a host of speakers on the Federal Reserve that might offer more insights about the state of the economy and avert a deeper crisis from the COVID-19 pandemic;

European markets opened higher, as hopes grew of a “relatively rapid” recovery amid new central bank forecasts and Chinese export data as the pan-European Stoxx 600 climbed 0.6% higher in early trading. Germany’s DAX (GDAXI) was up 0.8%, France’s CAC 40 (FCHI) was up 0.6% and Britain’s FTSE 100 (FTSE) edged 0.3% higher at around 8.30am in London;

Asia Pacific stocks were little changed as China’s Caixin/Markit services Purchasing Managers’ Index for April showed that the country’s services sector slumped for the third (3rd) straight month, as layoffs hit a record.

  • Chinese export data smashed through expectations, with overseas sales up 3.5% year-on-year in April despite the pandemic. Analysts had expected a 15.1% decline, according to Reuters.
  • Beijing also pledged more stimulus on Wednesday (6 May), including extending tax cuts for small companies and allowing banks to boost unsecured lending. Investors hope the recovery could be faster than previously expected in China, aiding global economic recovery.

 

Data docket: First-time filings for unemployment insurance hit 3.17 million last week, bringing the total to more than 33 million over the past seven weeks, the Labor Department reported Thursday. The total was slightly higher than the 3.05 million expected by economists.

  • The latest jobless claims numbers come a day before the Labor Department releases its nonfarm payrolls report for April.

 

Henry’omics:

Traders will be “digesting” the Labor Department’s latest report on jobless claims followed by the other half tomorrow of nonfarm payrolls. One key factor, businesses could have ALREADY clawed back 5 million jobs despite April report in reopening!

Also, the report is likely to show a slowing pace in the jobs decline.

While, investor optimism has been fueled by the prospect of authorities lifting lockdowns and relaxing other restrictions intended to curb the spread of the coronavirus.

However, the real extent of that damage will become “visible” in the next phase, beginning with “actual bankruptcies” or at least downgrades of companies

Again, again, I say to you: keep their portfolio risk level low and maintain a cash position by trading highs, buying lows while looking for opportunities to mitigate risk of volatility and add cash to burn later,

 

Wednesday night’s title: “as quarterly earnings confess; the therapeutic process evolves. Portfolio holdings need to be distanced from further volatility and risk infection.”

  • The NASDAQ closed UP +45.27 points (-0.51%);
  • The IBB closed up +0.02% and XBI also closed up +0.50%;
  • Wednesday closed positive at 20/13 and 2 flats;
  • The % of the 20-upside were +0.17% (STML) to +7.66% (ADVM) while the 13-downside ranged from -0.33% (ADRO) to -6.52% (BCLI);
  • 2 out of the 13-downside had higher than the 3-month average volume;
  • 9 out of the 20-upside had higher than the 3-month average volume;
  • As the CBOE Volatility Index (VVIX: INDEX) was up +1.52%;

Q2:

  • May registered 1 negative, 3 positive closes
  • April registered 10 negative, 11 positive closes and 1 holiday.

Q1:

  • March registered 11 negative, 10 positive closes and 1 neutral close.
  • February registered 9 negative, 9 positive closes, 3 vacation days and 1 holiday.
  • January registered 9 negative, 10 positive closes and 2 holidays.

 

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

Maintaining SELL into STRENGTH:

  • Adverum (ADVM) closed up +$1.45 after Tuesday’s+$5.27 and Monday’s +$1.73 and has a positive +$0.23 or +1.19% aftermarket indication,
  • Mesoblast (MESO; ASX: MSB) closed up +$0.79 after Tuesday’s +$0.27 is down -$0.02 or -0.17% aftermarket indication;

BUY:

  • Alnylam Pharmaceuticals (ALNY) closed up +$4.04 after Tuesday’s +$5.27, Monday’s +$7.66, Friday’s -$2.73 and last Thursday’s -$4.11 and has a positive +$4.45 +3.06% aftermarket indication;
  • Editas Medicine (EDIT) closed down -$0.59 after Tuesday’s rise of +$0.66 and Monday’s +$2.74 and has a positive +$0.99 or +$3.96% premarket indication;
  • CRISPR Therapeutics (CRSP) closed up +$0.33 after Tuesday’s +$2.00 and Monday’s +$1.54 and has a positive +$1.67 or +3.19% premarket indication;
  • ReNeuron (RENE.L) closed flat after up on Tuesday, being down on Monday, Friday and last Thursday and has a positive US pre-market pricing of +$26.70;

 

The BOTTOM LINE:  The philosopher Friedrich Nietzsche once observed that "any explanation is better than none."

I’m getting nervous when share pricing slips as Wednesday’s session came to an end! Markets could/should be preparing for modest declines after the government’s next jobless claims report.

Investors are also bracing for the Labor Department’s key jobs report on Friday, when economists expect to see the U.S. unemployment rate to have rocketed to 16% in April from 4.4% in March. Economists expect nonfarm payrolls to have declined by about 21 million last month.

RMi outlines the daily dosage of warning of risks with objectivity!

 

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.