December 1, 2022 7:47am

While Wednesday's action was encouraging, investors should await the market’s reaction to the PCE price index along with the November jobs report Friday, will help shape Fed rate hike expectations

Indications:  1 Sell into Strength, 2 Positive Indication and 3 Negative Indications

News: Intellia Therapeutics (NTLA) prices offering of 6.25 million shares priced at $45.80.

A daily report may say little or a lot and its final judgement may be inconclusive; yet it serves as insurance that all indications are being examined, evaluated and reported.

I don’t seek fame, do podcasts or give speeches; what I do is write this blog/newsletter to inform investors with facts and supporting numbers focused on what they need to hear that others won’t say or write about - truth!

8:00 a.m. edition


Remember that overnight and pre-open actions in futures don't necessarily translate into actual trading in the coming day’s session.

 

Dow futures are UP +0.28% or (+98 points), S&P futures are UP +0.55% or (+22 points) and NASDAQ futures are UP +0.61% or (+73 points) early in the pre-open – so far,

Stock futures were slipping and balanced up on Thursday, a day after a sharp rally,

European markets were higher,

Asia-Pacific markets traded higher.

 

Henry’omics:

We need to understand the macro to comprehend the micro re “our” universe of cell and gene therapy companies …

Indexes experienced gains Wednesday after Fed Chair Powell confirmed that the central bank will … slow the pace of its aggressive rate-hiking campaign that has weighed on markets.

  • The Dow closed UP +737.24 points (+2.18%), the S&P close UP +122.48 points (+3.09%) while the Nasdaq closed UP +484.22 points (+4.41%)

Economic Data Docket:The October Core Personal Consumption Expenditures Index rose 0.2%, below the consensus estimate of 0.3% collected from economists by Dow Jones. The 10-year Treasury yield decreased after the report and stock futures gained.

  • initial jobless claims ahead of the November jobs report due out Friday. The payrolls report is expected to provide more clarity on the labor market, and whether it continues to cool. Economists estimate the economy added 200,000 jobs in November, down from 261,000 additions in October. They also anticipate that the unemployment rate held steady from the prior month at 3.7%. Personal income and personal consumption expenditures data are also expected,

 

Wednesday’s (11/30) … RegMed Investors’ (RMi) closing bell: month’s end with gift from Jerome, a slow 50-point basis-point rate hike in December.”… https://www.regmedinvestors.com/articles/12722

RegMed investors (RMi) Research Note: Intellia Therapeutics (NTLA) prices offering of 6.25 million shares priced at $45.80.” … https://www.regmedinvestors.com/articles/12723

 

Ebb and flow:

Q4 – December - today

·         November -1 holiday, 14 negative and 8 positive closes

·         October -1 neutral, 11 positive and 9 negative closes

Q3/22 –

·         September – 1 holiday, 10 positive and 11 negative closes

·         August – 1 neutral, 11 positive and 11 negative closes

·         July - 1 holiday, 10 negative and 10 positive closes

 

Companies in my headlights – It’s your decision; I provide ideas and context: INDICATIONS

Sell into Strength:

Beam Therapeutics (BEAM) closed up +$2.58 to $46.19 after Tuesday’s +$0.43 and Monday’s -$1.10 with a positive +$0.31 or +0.67% pre-open indication.

 

Positive indication:

Prime Therapeutics (PRME) closed down -$0.14 to $17.19 after Tuesday’s -$0.11 and Monday’s -$3.27 with a positive +$1.89 or +10.99% pre-open indication.

Verve Therapeutics (VERV) closed up +$1.49 to $28.23 with a positive +$1.16 or -4.99% pre-open indication.

 

Negative Indication:

Chinook Therapeutics (KDNY) closed up +$2.39 to $22.65 with a negative -$0.95 or -4.19% pre-open indication

Intellia Therapeutics (NTLA) closed up +$3.46 to $51.46 after Tuesday’s -$0.26 and Monday’s -$1.42 Friday’s -$0.21 with a negative -$4.29 or -8.34% pre-open indication.

Sage Therapeutics (SAGE) closed up +$2.56 to $41.04 after Tuesday’s +$0.56 and Monday’s +$0.13 with a negative -$1.70 or -4.14% pre-open indication.

 

The BOTTOM LINE: I try to keep it simple and short!

Wednesday, the Nasdaq, led the upside reclaiming its 21-day line and the 11,000 level to settle at a two-month closing high.

In the very short term, investors may want to be cautious about making new buys. The market and sector face a big technical test with inflation and jobs reports likely to play a key role in how that plays out.

“While it's fine putting money to work in the current stock market, keep your exposure on the conservative side with small positions to start. Just because the stock market is in a confirmed uptrend doesn't mean you have to be 100% invested. And don't be afraid to take a 10% gain if you have it, given the choppy nature of the market.” <IBD>

Amid the ongoing cell and gene therapy sector volatility, “our” universe’s trend remains " in a constant correction." That means that … lately we are investors are safer on the sidelines.

Reiterating, “The real question that should be asked is how many companies are at the end of sentiments …  leash? I stick to my view of anticipating the risks – as my careers focus has been “warning analysis”.

Insight is about understanding perception and also about putting into context what is relevant to expectation fulfillment

 

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.

All investments are subject to risks. Investors should consider investment objectives.

Regulation Analyst Certification (Reg AC): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions securities referred to in this publication.