October 1, 2020 6:10pm

Pre-open indication results: 9 HITs and 0 MISS

News: Aduro Biotech (ADRO) announced a merger agreement by stockholders between ADRO and Chinook Therapeutics were approved by approximately 55,168,606 of the outstanding shares of ADRO. The closing is to take place on or around October 5, 2020; the combined company will be renamed Chinook Therapeutics and trade under the trading symbol “KDNY.”

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The Dow closed UP +35.20 points (+0.13%), the S&P closed UP +17.80 points (+0.53%) while the Nasdaq closed UP +159.00 points (+1.42%)

 

Henry’omics:

Indexes pared earlier gains and finished Thursday’s session slightly higher as hopes for further fiscal stimulus waned.

The market was supported by hopes that despite the public jockeying back and forth, lawmakers would eventually work a bill out.

  • Pelosi and Mnuchin held a phone call Thursday after they failed to strike a deal which aimed to pass a $2.2 trillion Democratic bill Wednesday night, had delayed a vote to allow more time for House Speaker Pelosi and Treasury Secretary Mnuchin to negotiate a bipartisan plan.

From today’s Data Docket: Some 837,000 Americans filed applications for unemployment benefits last week as companies continued to cut large numbers of workers amid the coronavirus pandemic, the feds said Thursday.

  • The weekly number of initial jobless claims brought the seasonally adjusted total for the COVID-19 crisis to nearly 62.8 million — a figure larger than Italy’s entire population — despite falling from 873,000 filings in the prior week. Economists were expecting 850,000 filings.

The pandemic isn’t expected to loosen its chokehold on the US labor market anytime soon as businesses grapple with its long-term effects.

 

This morning, I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: bracing for Q4 in October … https://www.regmedinvestors.com/articles/11570

 

Pre-open indications: 9 HITs < Biostage (BSTG -$0.03), Sell into Strength – Alnylam Pharmaceuticals (ALNY -$1.86), Brainstorm Cell Therapeutics (BCLI -$0.95), BioLife Solutions (BLFS +$0.48), Fate Therapeutics (FATE +$0.64), Pluristem (PSTI -$0.51), BUY - Applied Genetic Technologies (AGTC +$0.14), Solid Biosciences (SLDB +$1.43), Editas Medicine (EDIT +$0.11)> and 0 MISS

 

RegMed/Cell and Gene therapy 35 covered equities’ Advance/Decline (A/D) lines: progressions and regressions …

  • Thursday opened positive at 22/9 and 4 flats, stayed positive at the mid-day at 17/15 and 3 flats, closing positive at 21/12 and 2 flats;
  • Wednesday opened positive at 22/12 and 1 flat, stayed positive at the mid-day at 22/12 and 1 flat, closing negative at 13/20 and 2 flats;
  • Tuesday opened positive at 2013 and 2 flats, slipped neutral at the mid-day at 16/13 and 3 flats, closing negative at 16/18 and 1 flat;
  • Monday opened positive at 23/8 and 4 flats, slipped negative at the mid-day at 15/18 and 2 flats, closing neutral at 16/16 and 3 flats;

 

Key metrics:

  • Sector volume was extremely LOW with 9 of the 21-upside having higher than the 3-month average volume with the 3 of 12-downside having higher than the 3-month average volume;
  • Thursday’s percentage (%) of the 21-upside were +0.04% (RGNX) to +70.44% (SLDB) while the 12-downside ranges from -0.19% (BLUE) to -5.61% (BCLI); 

 

Hammered in today’s market:

  • Alnylam Pharmaceuticals (ALNY), Sage Therapeutics (SAGE), Brainstorm Cell Therapeutics (BCLI), Pluristem (PSTI) to name 5 of the 12 declining of the 35 covered

Jumping with share pricing momentum:

  • ReNeuron (RENE.L), Ultragenyx (RARE), Global Blood Therapeutics (GBT), Solid Biosciences (SLDB), Vericel (VCEL) to name 5 of the 21 inclining of the 35 covered

 

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Thursday, the IBB closed up +0.93% and XBI closed up +1.32%
  • Wednesday, the IBB closed up +0.59% and XBI closed down -0.23%
  • Tuesday, the IBB closed up +0.10% and XBI closed up +0.68%
  • Monday, the IBB closed up +0.76% and XBI closed up +0.12%

 

Thursday’s (10 of 21) incliners:

  • ReNeuron (RENE.L +$6.50 after Wednesday’s +$2.50, Tuesday’s -$2.50 and Monday’s +$0.50);
  • Ultragenyx (RARE +$3.52 after Wednesday’s -$2.91, Tuesday’s +$2.60 and Monday’s +$0.65);
  • Global Blood Therapeutics (GBT +$2.82 after Wednesday’s +$1.20, Tuesday’s +$0.31 and Monday’s-$0.55);
  • Solid Biosciences (SLDB +$1.43);
  • Vericel (VCEL +$1.05 after Wednesday’s +$0.34);
  • Fate Therapeutics (FATE +$0.64 after Wednesday’s +$0.57, Tuesday’s -$1.10 and Monday’s +$2.70),
  • BioLife Solutions (BLFS +$0.48 after Wednesday’s +$0.28, Tuesday’s +$1.63 and Monday’s +$0.78);
  • Aduro Biotech (ASRO +$0.43 with a merger agreement);
  • uniQure NV (QURE +$0.41 after Wednesday’s +$0.85, Tuesday’s -$0.43 and Monday’s -$0.94);
  • Homology Medicine (FIXX +$0.36);

Thursday’s (12 of 12) decliners:

  • Alnylam Pharmaceuticals (ALNY -$1.86 after Wednesday’s +$0.59, Tuesday’s +$5.20 and Monday’s +$1.50),
  • Sage Therapeutics (SAGE -$1.59 after Wednesday’s +$1.45, Tuesday’s-$0.22 and Monday’s -$0.93);
  • Brainstorm Cell Therapeutics (BCLI -$0.95 after Wednesday’s +$0.73, Tuesday’s +$0.24 and Monday’s +$1.00),
  • Pluristem (PSTI -$0.51 after Wednesday’s+$0.41 and Tuesday’s +$0.63);
  • CRISPR Therapeutics (CRSP -$0.30 after Wednesday’s-$1.35, Tuesday’s +$1.30 and Monday’s -$0.40);
  • AxoGen (AXGN -$0.13);
  • bluebird bio (BLUE -$0.10 after Wednesday’s -$1.05, Tuesday’s-$0.90 and Monday’s -$1.14);
  • Sangamo Therapeutics (SGMO -$0.09 after Wednesday’s -$0.44);
  • Cellectis SA (CLLS -$0.07)
  • Bellicum Pharmaceuticals (BLCM -$0.05);
  • Biostage (BSTG -$0.03);
  • Athersys (ATHX -$0.02);

Closing flat – 2: Mesoblast (MESO) and Stemline Therapeutics (STML – acquired)

 

Percentage (%) movement/range statistics: a 360 degrees comparison of % and pricing

  • Thursday’s percentage (%) of the 21-upside were +0.04% (RGNX) to +70.44% (SLDB) while the 12-downside ranges from -0.19% (BLUE) to -5.61% (BCLI); 
  • Wednesday’s percentage (%) of the 13-upside were +0.41% (ALNY) to +5.19% (ADRO) while the 20-downside ranges from -0.26% (AXGN) to -8.01% (NTLA); 
  • Tuesday’s percentage (%) of the 16-upside was +0.32% (CLLS) to +6.64% (PSTI) while the 18-downside ranges from -0.20% (SGMO) to -10.92% (BSTG); 
  • Monday’s percentage (%) of the 16-upside was +0.52% (RARE) to +10.83 (MESO) while the 16-downside ranges from -0.28% (NTLA) to -4.35% (ADVM); 

 

Sentiment and a few daily indicators:

Mixed economic data also kept sentiment in check. U.S. manufacturing activity slowed in September as a purchasing manager’s index fell to a reading of 55.4 from 56 in August, according to the Institute for Supply Management.

  • The weekly jobless claims report came in better than expected, however. The Labor Department said first-time filers for unemployment benefits tallied 837,000 in the week ending Sept. 26. Economists polled by Dow Jones expected a total of 850,000.

Infection cases:

  • Thursday 7.19 cases
  • Wednesday 7.19 cases
  • Tuesday 7.16 cases
  • Monday 7.12 M cases

Thursday’s death rate totaled 206,036 after Wednesday’s 206,036, Tuesday’s 205,547, Monday’s 204,881, Friday’s 202,827 and last Thursday’s 201, <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Thursday: 9 out of the 21-upside had higher than the 3-month average volume;
  • Wednesday: 3 out of the 13-upside had higher than the 3-month average volume;
  • Tuesday: 0 out of the 16-upside had higher than the 3-month average volume;
  • Monday: 2 out of the 16-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was up +0.33points or +1.25% at 26.70
  • Wednesday was up +0.10 points or -0.38% at 26.37
  • Tuesday was up +0.08 points or +0.31% at 26.27
  • Monday was down -0.19 points or -0.72% at 26.19

Downside volume:

  • Thursday: 3 out of the 12-downside had higher than the 3-month average volume;
  • Wednesday: 3 out of the 20-downside had higher than the 3-month average volume;
  • Tuesday: 2 out of the 18-downside had higher than the 3-month average volume;
  • Monday: 3 out of the 16-downside had higher than the 3-month average volume;

 

October, the first month of Q4 …  

Thursday (10/1) closed negative with 21 advancers, 12 decliners and 2 flats

 

The Bottom Line: September proved to be a bruising month for the main U.S. equity benchmarks, resulting in the first losing month since a recovery rally began in late March. The short-term volatility pressures won’t abate. In a sense, it’s creating even more uncertainty along with the coming Q3 earnings reporting season.

  • However, history suggests that a terrible September, which is historically the worst performing month of the year for U.S. stocks, could be followed by the indexes outperforming despite October usually ranking as the second-worst month of the year.

 

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.