May 3, 2023 7:36am

2 p.m. Fed monetary policy decision will not to cure any ills as sentiment seems antimicrobial resistant

Earnings: Ionis Pharmaceuticals (IONS), Regenxbio (RGNX) and Fate Therapeutics (FATE)

Pre-open indications: 1 Positive and 2 Negative indications

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

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.

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

 

Dow futures are UP +0.13% or (+43 points), S&P futures are UP +0.20% or (+8 point) and NASDAQ futures are UP +0.22% or (+29 points) early in the pre-open – so far

Stock futures rise as investors await Fed rate decision on Wednesday,

European markets were cruising positive,

Asia-Pacific markets largely fell.

 

Henry’omics:

We need to more than consider the economic environment - rising rates and inflation to comprehend the micro re “our” universe of cell and gene therapy companies …

On Tuesday, indexes notched their second straight losing session as the Dow dropped -367.17 points or 1.08%, the S&P 500 declined 48.29 points or -1.16%, while the Nasdaq fell -132.09 points or -1.08%.

The Fed is a near lock to raise rates at 2 p.m. ET today, even with the banking crisis, spurred in large part by rapid Fed tightening that is far from over. A quarter-point move would bring the fed funds rate to 5%-5.25%.

Economic Data Docket: ADP jobs data for April; expect a rise of 133,000 jobs last month - a decline from the 145,000 jobs increase the prior month. The S&P Global U.S. Services PMI data for April expected to show a reading at 53.7 last month, which is in line with the prior month. April’s ISM non-manufacturing PMI data is forecasted to show 51.8, according to consensus estimates; hat’s higher than the 51.2 reading from the previous month.

 

Tuesday’s (5/2) … RegMed Investors’ (RMi) closing bell: “Humpty-Dumpty was not an egg but, a cannon and today fired a warning shot to the cell and gene therapy sector’s earnings season. On Tuesday, the major averages notched their second straight losing session. The Dow Jones Industrial Average dropped 367.17 points, or 1.08%. The S&P 500 declined 1.16%, while the Nasdaq Composite fell 1.08%.” … https://www.regmedinvestors.com/articles/12941

 

Ebb and flow:

Q2/23 – May – 1 negative and 1 positive closes

·         April ended - 1 holiday, 8 positive close and 11 negative closes

Q1/23 –

·         March – ended with 10 positive and 13 negative closes

·         February – 1 holiday, 2 vacation, 7 negative and 8 positive closes

·         January – 2 holidays, 11 positive and 9 negative closes

 

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

Positive Indications:

Tuesday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)

MiMedx (MDXG) closed down -$0.04 with a positive +$0.62 or +16.27% aftermarket indication

 

Negative Indications:

Tuesday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)

Mesoblast (MESO) closed up +$0.06 with a negative -$0.10 or -3.11% aftermarket indication.

Ultragenyx Pharmaceuticals (RARE) closed down-$1.52 with a negative -$0.85 or -2% aftermarket indication.

 

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

I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”

This week’s special, sector earnings start rolling out …

The cell and gene therapy sector could experience the “flight of Icarus” …  since “our” universe have oscillated between gains and losses since the first of 2023!

There are really three camps, electronic algorithms, traders versus investors who STILL don’t comprehend if the worst is behind us and those “entities” that continue to focus on tailwinds and not headwinds?

Reiterating, “More frequently right than consequentially wrong … “The rubber is hitting the road, so those companies have to do quite well to justify it.” What is the “it” – as LPS (loss-per-share) numbers facilitate downslides.”

Investors should STILL be hesitant to add to positions re concerns of electronic trading i.e., algorithms seem to be the only ones leading any upside – go with flow.

I also hate to be so negative or contrarian but, this is a NO spin zone and truth is its product; I can always be WRONG but, I am mostly EARLY!

At ANY time, this week, be ready to take partial profits and exit losers.

 

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.