January 11, 2023 7:49am

Overwhelming weekly indication, the U.S. consumer price index looms large

Pre-open Indication: 2 Positive Indications and 2 Negative Indications

I 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! Subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investors!  Join me … in the NO spin zone.

The 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 +0.15% or (+52 points), S&P futures are UP +0.22% or (+8 point) and NASDAQ futures are UP +0.13% or (+15 points) early in the pre-open – so far

Stock futures are rising on Wednesday,

European markets were higher,

Asia-Pacific shares trade higher.

 

Henry’omics:

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

Yesterday, indexes advanced (Tuesday) as investors built on Monday’s losses in the Dow and S&P with an upside move while awaiting economic data and corporate earnings coming later in the week.

·         The Dow closed UP +186.45 points (+0.56%), the S&P closed UP +27.16 points (+0.70%) while the Nasdaq closed UP +106.98 points (+1.01%)

Economic Data Docket: The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) decreased last week to 6.42% from 6.58%. The drop-in rates sparked a 5% increase in applications to refinance a home loan.

 

A Morning Disaster: Hundreds of U.S. flights were delayed Wednesday morning after the Federal Aviation Administration suffered an outage of the system that sends messages to pilots. The FAA ordered airlines to pause domestic departures until 9 a.m. ET “to allow the agency to validate the integrity of flight and safety information.” The agency said it was working to restore the Notice to Air Missions System.

 

Tuesday’s (1/10) … RegMed Investors’ (RMi) closing bell: “the sector experiences a tailwind with the merry-go-round still spinning tomorrow. JPM23 – day #2 gets some help from Monday’s oversold being “stimulated” by good, old “uncle algorithms with brother electronic trading.” …  https://www.regmedinvestors.com/articles/12780

 

Ebb and flow:

Q1/23 – 1 holiday, 3 positive and 3 negative closes

Q4

·         December – 1 holiday, 13 negative and 8 positive closes

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

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

 

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

Positive Indications:

BioLife Solutions (BLFS) closed up +$0.58 to $20.81 with a positive +$0.63 or +3.03% pre-open indication,

Verve Therapeutics (VERV) closed down -$0.26 to $20.118 with a positive +$0.82 or +4.06% aftermarket indication,

 

Negative Indications:

Beam Therapeutics (BEAM) closed up +$0.77 to $39.45 with a negative -$0.45 or -1.14% pre-open indication,

Prime Medicine (PRME) close up+$1.01 to $17.26 the a negative -$0.66 or -3.82% pre-open indication.

 

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

Tuesday’s sector pricing popped to the positive after Monday’s sector slipped after Friday’s flip to the upside – barely after Thursday’s downside … following the jobs report stimulated the economics of the market and sector to a “hiking” mode.

Market “conditions” are dependent on market wind directions, economics and algorithmic electronic trading; it’s HARD to define ANY semblance of continuous upside or forward motion.

Reiteration, “There is the 800-pound gorilla in the room. The central bank. The Federal Reserve and their either overt intention to force this recession or quite simply, their inability to cogently interpret economic conditions in anything approaching real-time.” <TheStreeet>

Although, what STILL makes me NERVOUS and ANXIOUS about 2023 is short-term momentum as Q4 earnings are due to be released mid-January and into February which will out share pricing into a gauntlet.

The “glitter” of JPM’s healthcare Conference<next week> has been highlighting “disparities” of the sector!

While, “This is still a window-shopping market. But there are a lot of intriguing stocks to watch from a variety of sectors.” <IBD>

My interpretation of the morning’s numbers is written to be informative; it’s built on will happen behind the headlines today, not tomorrow or yesterday

Reiterating, “As 2023 trading begins, some investors think the pain is far from over; I agree for Q1 as earnings releases could hinder share pricing however, once through that “gauntlet” – we could see a bit of a smoother road in Q2/2023 hoping for a few clinical results and successful financings – well needed for more than usual companies.”

“Don't act like the market is in an uptrend until the market is actually in an uptrend”.

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.