January 19, 2023 8:31am
From economic data that enhances inflation and recession fears
Pre-open Indications: 4 Negative Indications
News: bluebird bio (BLUE +$0.20) prices offering of 20 M shares at $6.00 … https://www.regmedinvestors.com/articles/12790
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 8:30 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 DOWN -0.84% or ( -282 points), S&P futures are DOWN -0.87% or (-33 point) and NASDAQ futures are DOWN -0.97% or (-110 points) early in the pre-open – so far
Stock futures traded lower Thursday,
European markets tracked lower,
Asia-Pacific markets traded mixed.
We need to understand and integrate the macro to comprehend the micro re “our” universe of cell and gene therapy companies …
Disappointing retail sales and a weaker-than-expected producer price index reading ignited recession fears, sending stocks lower. The 10-year U.S. Treasury yield fell to the lowest level since September. <CNBC>
Indexes and the cell and gene therapy sector gave back any gains on Wednesday as investors hit the brakes on the new year’s rally, now in its third (3rd) week.
· The Dow closed DOWN -614.22 points (-1.81%), the S&P closed DOWN -62.19 points (-1.56%) while the Nasdaq closed DOWN -138.10 points (-1.24%)
Economic Data Docket: Initial jobless claims, housing starts and the Philadelphia Federal Reserve’s manufacturing survey
The Opening (Financing) Window: BLUE is leaping, so is Fulcrum Therapeutics (FULC), a clinical-stage biopharmaceutical company focused on improving the lives of patients with genetically defined rare diseases, today announced the pricing of an underwritten public offering of 9,615,384 shares of its common stock at a public offering price of $13.00 per share.
· The gross proceeds to Fulcrum from the offering, before deducting underwriting discounts and commissions and other estimated offering expenses, are expected to be $125 million. All shares in the offering are to be sold by Fulcrum Therapeutics.
· Fulcrum has granted the underwriters a 30-day option to purchase up to an additional 1,442,307 shares of its common stock. The offering is expected to close on or about January 20, 2023, subject to customary closing conditions.
· Goldman Sachs & Co. LLC, SVB Securities and Piper Sandler & Co. are acting as joint book-running managers for the offering. H.C. Wainwright & Co. is acting as lead manager for the offering.
Wednesday’s (1/18) … RegMed Investors’ (RMi) closing bell: “momentum rolls downhill as economic data exchanges the scenario to a negative close. I am doubting the markets and cell/gene therapy sector’s strength as Q4 reporting season is about to begin.” … https://www.regmedinvestors.com/articles/12791
Ebb and flow:
Q1/23 – 2 holiday, 6 positive and 5 negative closes
· 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
Beam Therapeutics (BEAM) closed up +$0.06 to $44.51 after Tuesday’s +$1.21 with a negative -$1.50 or -3.37% pre-open indication.
CRISPR Therapeutics (CRSP) closed down -$1.22 to $50.55 after Tuesday’s +$1.83 with a negative -$0.65 or -1.29% pre-open indication.
Intellia Therapeutics (NTLA) closed down -$0.97 to $36.08 with a negative -$0.92 or -2.55% pre-open indication,
uniQure NV (QURE) closed down -$0.40 to $22.12 with a negative -$0.44 or -1.99% pre-open indication,
The BOTTOM LINE: I try to keep it simple and short!
An unsettled sector hooked to markets and economic releases.
Two (2) negative closes followed four (4) sector positive closes in a row. The cell and gene therapy sector’s four session rally was due for a pullback.
While markets cheer cooler inflation data and slowing job and wage growth, they're not keen on an actual recession. So, while investors initially celebrated the sharp drop in producer prices, they were unnerved by hawkish Fed comments given the surprisingly weak retail sales and industrial production data. <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 Q4 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.