February 19, 2021 7:42am
The question is whether the market influences the sector to get over itself as earnings’ season heats-up
Pre-open indication: 5 BUYs and 6 SELLs
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Dow futures are UP +0.18% (+58 points), S&P futures are UP +0.29% (+11 points) and NASDAQ futures are UP +0.43% (+59 points)
Stock futures were slightly higher early Friday.
European markets were cautiously higher as investors monitor rising bond yields, corporate earnings and a batch of key economic data out of the euro zone.
Asia-Pacific stocks were mixed, although Mainland Chinese markets were higher while Australia slipped
Data Docket: The euro zone flash composite PMI, combining manufacturing and services activity, climbed to 48.1 in February from 47.8 in January. However, any reading below 50 indicates a contraction in business activity. While, Germany’s composite PMI reading came in at 51.3, up from 50.8 in January, with anything above 50 representing an expansion. A surge in manufacturing activity offset a contraction in services.
Are we ending the short week on a nervous and stingy tone …?
Janet Yellen, Sec. of Treasury has stated that a large stimulus is needed and that package, along with a smooth economic reopening this year, will cause the market rally to continue.
The House of Representatives will try to pass a $1.9 trillion coronavirus relief plan before the end of February, Speaker Nancy Pelosi said Thursday. Democratic Congressional leaders may try to pass a package without votes from Republicans. <CNBC>
The market’s rally to records seems to have fizzled as fears of rising rates and higher inflation crept-in after a worse-than-expected reading on jobless claims.
Thursday’s evening’s recap: “a session of falling knives. Expected as discouraging data after record highs and fragile sentiment cursed any upside; maybe we should call it; a negative Black Swan, which is where the downside of the event is unbounded while the upside is depressed” …
- The Nasdaq closed DOWN -100.14 points (-0.72%);
- The IBB closed down -1.69% and XBI closed down -2.60%;
- Sector volume was LOW with 1 of the 2-upside having higher than the 3-month average volume with the increased volume of 7 of 32-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was up +0.99 points or +4.60% at 22.49;
- Thursday’s percentage (%) of the 2-upside were +1.24% (MDXG) to +1.49% (AXGN) while the 32-downside ranges from -0.11% (RARE) to -11.69% (FIXX);
February: 7 positive and 6 negative closes and 1 holiday to date
January: 10 positive, 9 negative closes and 1 holiday
Companies in my headlights – It’s your decision; I provide an idea and context:
Maintaining Sell: Questions continue …
Biostage (BSTG) closed down again -$0.115 to $1.85 with 303 shares traded after Wednesday’s -$0.12 to $1.97 with 4.656 shares traded, Tuesday’s -$0.03 to $2.09 with 1,243 shares “pumped” following and last Friday’s flat at $2.12 with 88 shares traded. Reiterating …
Question#1: WHERE and WHEN is the NEXT financial officer coming, WILL this be number 6 or 7 to hold the CFO/accounting/finance position in four (4) years?
Question #2: Is there an “aha” action in the cards in regard to minority investors who are watching and waiting and WILL RSM US LLP “connect the dots of operational and financial” actions and relationships?
Global Blood therapeutics (GBT) closed down -$0.41 to $48.76 with a negative -$1.26 or -2.58% aftermarket indication.
Mesoblast (MESO) closed down -$0.10 to $10.32 after Wednesday’s +$0.24 to $10.42, Tuesday’s -$0.42 to $10.18 with a negative -$0.12 or -1.16% aftermarket indication.
Verastem Oncology (VSTM) closed down -$0.01 to $2.81 after Wednesday’s +$0.34 to $2.82 after Tuesday’s +$0.11 to $2.48 following Friday’s $2.37 and last Thursday’s $2.38 with a negative -$0.06 or -1.24%;
Sage Therapeutics (SAGE) closed down -$4.01 to $78.47 with a negative -$0.47 or -0.60% aftermarket indication.
Vericel (VCEL) closed down -$0.19 to $50.96 with a negative -$0.26 or -0.51% aftermarket indication;
Bellicum Pharmaceuticals (BLCM) closed down -$0.53 to $6.05 with a positive +$0.17 or +2.81% aftermarket indication.
blue bird bio (BLUE) closed down -$1.07 to $26.95 with a positive +$0.28 or +1.04% aftermarket indication.
Cellectis SA (CLLS) closed down -$1.49 to $24.02 with a positive +$0.98 or +4.08% aftermarket indication.
Intellia Therapeutics (NTLA) closed down -$2.19 to $66.61 with a positive +$1.79 or +2.69% aftermarket indication.
Ionis Pharmaceuticals (IONS) closed down -$0.77 to $57.53 with a positive +$0.96 or +1.67% aftermarket indication.
The BOTTOM LINE: for the market and the sector to extend its high, expectations for further fiscal stimulus and a smooth reopening need to become reality.
Reiterating, “The short-term path to sector equities rolling higher is smaller ... to put it succinctly, earnings’ season seems to disengage buyers to wait for bigger dips pre- and post-releases to buy back into “our’ universe.
It’s STILL all about, the “bouncing ball” of market and sector momentum …
Many talk of horizons; “I said last week, my horizon is usually a Friday’s close …”
Again, “forewarned … earnings LPS (loss-per-share) season is coming quickly – my advice, trim and skim!”
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.