June 5, 2020 8:45am
In physics, the terms snap, crackle and pop are sometimes used to describe the fourth, fifth- and sixth-time derivatives of position. The first derivative of position with respect to time is velocity, the second is acceleration, and the third is jerk (or jolt also with respect to time).
Pre-open indications: 3 BUYs and 2 SELLs
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Dow future are UP +2.36% (+619 points), S&P futures are UP +1.54% (+48 points) and NASDAQ futures are UP +0.05% (+5 points)
U.S. stock futures were sharply higher on Friday, with investors prepare for the effect of the May jobs’ report;
European markets rallied as investors digested an expansion of the European Central Bank’s bond-buying program and awaited the U.S. nonfarm payrolls report due later in the day;
- The European Central Bank on Thursday said it will increase in its Pandemic Emergency Purchase Program by 600 billion euros.
Asia Pacific stocks were higher as investors awaited the U.S. nonfarm payrolls report (expected); Japan, South Korea, Australia and Mainland China markets were higher as the MSCI Asia ex-Japan index rose 0.86%.
Data docket: the U.S. nonfarm payrolls report
- Nonfarm payrolls in May decreased by 8.333 million while the unemployment rate was seen rising to 19.5%,
Despite Thursday’s declines, the major averages were still on pace to post solid weekly gains. The Dow, S&P 500 and Nasdaq Composite are all up week to date.
- The Dow is up 3.5% this week. The S&P 500 is up 2.2% and the Nasdaq Composite is up 1.3% through Thursday’s close.
TGIF, tired of rolling share pricing ... sustainability has been usurped!
Thursday post’s title: “sector set-back, underperformance is beset by sentiment spoilage.”
- The NASDAQ closed DOWN -67.10 points (-0.69%);
- The IBB closed down -0.91% and XBI also closed down -1.79%;
- Thursday closed negative at 5/30 and 0 flat;
- Volume was WEAK with 1 out of the 5-upside having higher than the 3-month average volume and 6 out of the 30-downside having higher than the 3-month average volume;
- Thursday’s percentage (%) of the 5-upside were +2.76% (BLUE) to +8.64% (BSTG +0.17 with 1.430 shares traded) while the 30-downside ranged from -0.31% (BLFS) to -8.35% (ADRO);
- June registered 2 positive and 2 negative 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
- bluebird bio (BLUE) closed up +$1.80 to $66.90 and has a positive +$0.10 or +0.15% aftermarket indication – I’ll play a game of speculation or take a chance on this one;
- Sage Therapeutics (SAGE) closed down -$0.83 and has a positive +$0.73 or +2.08% aftermarket indication;
- Solid Biosciences (SLDB) closed down -$0.13 and has a positive +$0.09 or +3.06% aftermarket indication;
- Applied Genetic Technologies (AGTC) closed up +$0.20 after Wednesday’s -$0.08 to $4.90 and has a negative -$0.01 or -0.20% aftermarket indication;
- Ionis Pharmaceuticals (IONS) closed down -$0.96 and has a negative -$0.56 or -1% aftermarket indication;
The BOTTOM LINE: While not looking past Wednesday and Thursday’s “pain”, hope springs from uncertainty, and maybe a path toward a robust reopening, which I call a reawakening of businesses.
My concern is that currently considered “risky” assets i.e. our universe of RegMed/Cell and Gene therapy companies exist as speculative buy-any-rumor or volume move and sell-any-high approach is the ONLY one making a profit from our “lot”!
Non-farm-payrolls (NFP) … if yesterday’s ADP report proves to be accurate in foretelling a less dramatic than consensus loss of jobs during May, such an event could easily be dismissed as ‘priced in’ and be followed by a round of profit-taking thereby putting downward pressure on risk ahead of the weekend.
I’m a “Tears for Fears” band fan and one song's lyrics/message “Everybody wants to Rule the World” shouldn't be lost upon us:
- From the lyrics - “It's my own design, it’s my own remorse, help me to decide, help me make the most of freedom and of pleasure, nothing ever lasts forever, everybody wants to … make money (my addition or change).
We should and can all rule our own portfolio, by following RMi.
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.