June 15, 2020 8:37am
Monday’s action in futures markets follows a big pullback last week triggered by rising fears of a re-emergence of the virus and profit-taking after the markets’ comeback
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Dow futures are DOWN -2.33% (-593 points), S&P futures are DOWN -2.04% (-62 points) and NASDAQ futures are DOWN -1.41% (-136 points)
Stock futures are falling, pointing to more losses ahead as investors grapple with the signs of a second wave of coronavirus cases as the economy reopens.
European stocks were lower amid concerns over a resurgence of the coronavirus in Asia and the U.S. as lockdowns are eased. The pan-European Stoxx 600 halved earlier losses but was still down -1.1% by mid-morning;
Asia Pacific stocks declined, with the Nikkei 225 in Japan dropping more than 3% while South Korea’s Kospi plunged -4.76%. Mainland Chinese stocks were lower on the day, Hong Kong’s Hang Seng index declined -2.16% as the S&P/ASX 200 in Australia fell -2.19% to close at 5,719.80 and the MSCI Asia ex-Japan index dropped -2.21%.
- All global indexes/bourses/markets were weighed down by the recent spikes in coronavirus cases.
The reopening is happening, there’s fear of insignificant results. Lack of distancing may trigger a second wave of the virus, followed by a possible … new round of lockdowns.”
The Dow lost -5.5% and the S&P 500 declined -4.7% last week; while the Nasdaq shed 2.3%. All three major equity benchmarks suffered their worst week since March 20. After last week’s sell-off, the S&P 500 is down 5.8% on the year, still more than 38% higher from its March low. The Dow is down 10.2% year to date.
As I had stated on Friday, ”The potential of the RegMed/cell and Gene therapy sector has the same potential as it has had – it’s just more a victim of speculation; Q2 results are being prepared but, stocks are up the most from the lows are still the risk-on, high beta, value, small-cap stocks.”
There’s more pain to come in the short and near-term before the market clears out kind of this excessive speculation and electronic trading carve-out.
Mask up, gloves on and continue to work from home!
Friday’s post’s title: “a surge with a whiplash component.”
- The NASDAQ closed UP +96.08 points (+1.01%);
- The IBB closed up +0.53 % and XBI also closed up +1.27 %
- Friday opened positive and closed positive;
- Sector volume continued LOW with 8 out of the 25-upside having higher than the 3-month average volume and 2 out of the 8-downside having higher than the 3-month average volume;
- Friday’s percentage (%) of the 25-upside were +0.18% (GBT) to +12.20% (PGEN) while the 8-downside ranged from -0.05% (ADVM) to -2.53% (MDXG);
- June registered 4 positive and 6 negative closes
- 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
Stay neutral today, what will happen is already in the “cards” – watch and wait; No “may the force be with you” today’s pain will be your future gain.
The BOTTOM LINE: COVID-19 increases and distancing deterioration in some reopened states is causing an increase of the infected population, a severe cloud over the market.
New is more than important: the key catalysts - Conferences:
- The Endocrine Society's ENDO Online 2020: June 8-22
- 25th Edition of the European Hematology Association, or EHA, Annual Congress held in virtual format: June 11-21
- American Academy of Dermatology, or AAD, Virtual Meeting Experience: June 12-14
- The American Diabetes Association, or ADA, 80th Scientific Sessions – Virtual: June 12-16
- The World Federation of Hemophilia, or WFH, Virtual Summit: June 14-19
Also, keep your eyes peeled for PDUFA dates < PDUFA dates are deadlines for the FDA to review new drugs. The FDA is normally given 10 months to review new drugs. If a drug is selected for priority review, the FDA is allotted 6 months to review the drug. These time frames begin on the date that an NDA is accepted by the FDA as complete.
- Ultragenyx Pharmaceutical Inc (RARE) and its Japanese partner Kyowa Kirin have a tryst with the FDA, as the agency is set to rule on hypophosphatemia treatment candidate burosumab. (Thursday)
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.