June 3, 2020 7:49am

Despite an ongoing pandemic, country-wide riots and Chinese relations; markets are absorbed with resuming business than the strife throughout the country

Pre-open indications: 2 BUY and 2 SELLs 

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Dow future are UP +0.57% (+147 points), S&P futures are UP +0.38% (+14 points) and NASDAQ futures are UP +0.27% (+26 points)


U.S. stock futures rose as markets continued to rally on optimism over economies emerging from shutdowns;

European stocks traded in positive territory, but U.S. unrest is expected to weigh on investor sentiment as the pan-European Stoxx 600 climbed +1.1% in early trade;

Asia Pacific stocks were higher, with South Korea’s Kospi jumping +2.87%, although Australia saw gains even as GDP fell -0.3% in seasonally adjusted, chain volume terms during the March quarter. Japan saw decent gains with Hong Kong and Shanghai while Shenzhen dipped


Data docket:  U.S. employers cut 2.76 million private payrolls in May, according to ADP. The job cuts reflected in ADP’s report came in again at a historically high level, but was below the figure many market participants were bracing to receive. Consensus economists expected private sector job losses to total 9 million for May.

The services sector again bore the brunt of the payroll declines in May, as ongoing social distancing measures and business closures hammered the restaurant, travel and tourism industry for another month. Overall, service-sector payrolls slumped by 1.967 million.

  • Mortgage applications to purchase a home rose +5% for the week and demand 18% higher than a year ago, applications had been down -35% annually.
  • The average rate on the 30-year fixed mortgage hit another record low, 3.37%



Investors seem to ignore U.S. unrest, other than watching the rioting in the streets on the TV following the May 25 death of George Floyd and other recent racially charged killings.

Ignoring curfews, U.S. protests continued late into Tuesday evening, mostly in Manhattan, Brooklyn and Brocton, Mass. marking the eighth day of nationwide unrest.

Hope that economies are turning the corner seems to be the ONLY thought on people’s minds!

While markets are being fueled on a bonanza of cheap money, there is a growing worry that investors are mispricing the economic scarring that is likely to be left once the full effects of the current crisis have started to become more apparent,” <Michael Hewson, CMC Markets>.


Tuesday post’s title: “are things” good or less bad.”

  • The NASDAQ closed UP +56.33 points (+0.59%);
  • Tuesday opened negative at 13/30 and 2 flats and closed positive at 21/13 and 1 flat;
  • Volume was LOW with 4 out of the 21-upside having higher than the 3-month average volume and 3 out of the 13-downside having higher than the 3-month average volume.
  • Tuesday’s percentage (%) of the 21-upside were +0.20% (GBT) to +83.33% (PGEN +$1.80) while the 10-downside ranged from -0.06% (QURE) to -23.74% (ADRO); 


  • June registered 2 positive close
  • May registered 9 negative, 11 positive closes and 1 holiday
  • April registered 10 negative, 11 positive closes and 1 holiday.


  • 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

Sell into strength:

  • Athersys (ATHX) closed up +$0.11 after Monday’s +$0.10 after Friday’s +$0.13, now it filed for a whopping $35 million “shelf” and has a negative -$0.01 or -0.32% aftermarket indication;’
  • CRISPR Therapeutics (CRSP) closed up +$1.77 after Monday’s +$2.01 after Friday’s +$2.27 to $64.59 and has a negative -$0.26 or -0.35% aftermarket indication and a 52-week change of +79.55% and started May 1st at $48.46 and April 1st at $38.50;

Maintaining BUY:

  • Sage Therapeutics (SGMO) closed down -$0.43 after Monday’s -$0.49 and has a positive +$0.01 or +0.03% aftermarket indication. SAGE CUT the bloated financial “tires” it’s sleeker and able to respond quicker that others as the future becomes clear;
  • Global Blood Therapeutics (GBT) closed up +$0.14 to $68.81 and has a positive +$0.97 or +1.41% aftermarket indication


The BOTTOM LINE: How is the stock market still climbing higher given the rising civil discord?

These protesting crowds, some rioting have financial markets and healthcare pros worried about a second wave of COVID-19 infections that could/might return the economy to full shutdown mode.

The reason the market is not paying attention yet … is the market doesn’t believe it’s going to impact earnings – cold but, true.

Sooner or later, there is a price to be paid; in these times of market flux, anything could happen.


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.