May 12, 2023 7:35am
The debt ceiling meetings got put off until next week; June is NOT that far off! A debt default would cause major disruptions to financial markets and the economy, which is already in danger of falling into a recession.
Pre-open indications: 1 Positive and 1 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 +0.42% or (+140 points), S&P futures are UP +0.40% or (+16 point) and NASDAQ futures are UP +0.22% or (+30 points) early in the pre-open – so far
U.S. stock futures were higher Friday,
European stock markets were higher,
Asia pacific markets trade mixed.
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 …
Thursday, the Dow dived; the S&P fell while the Nasdaq popped; the Dow closed DOWN -221.82 points (-0.66%), the S&P closed DOWN -7.02 points (-0.17%) while the Nasdaq closed UP +22.06 points (+0.18%).
As of Thursday’s close, the Dow and the S&P 500 are headed for weekly losses, while the Nasdaq is on pace to end the week higher.
· The Dow is down 1.08%, on pace for its second negative week in a row for the first time since its two-week streak ending March 17.
· The S&P 500 is down 0.14%, on pace for its second negative week in a row for the first time since its three-week streak ending Feb. 24.
· The Nasdaq is up 0.76%, on pace for its third positive week in a row. <Chris Hayes & Sarah Min – CNBC>
Economic Data Docket: preliminary consumer sentiment data
- Economists are expecting a May reading of 63.0, which would be lower than the level of 63.5 in the previous reading.
Thursday, “bearish opinion among retail investors that stock prices would weaken over the next six months remained “unusually high” for a second week in the latest weekly survey conducted by the American Association of Individual Investors.
- Bearishness dropped to 41.2% from 44.9%, but the historical average over decades is 31.0%. Pessimism toward stocks has stayed above the historical average for 72 out of the past 77 weeks, AAII said. Bullishness rose to 29.4% from 24.1% last week, versus an historical average of 37.5%.
Thursday’s (5/11) … RegMed Investors’ (RMi) closing bell: “under pressure with share pricing deceleration. As investors contemplate exits as macroeconomic “numbers” force pricing depression.” … https://www.regmedinvestors.com/articles/12955
Ebb and flow:
Q2/23 – May – 3 negative and 6 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
Negative Indications:
Thursday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Solid Biosciences (SLDB) closed up +$0.24 with a negative -$0.13 or -2.02% aftermarket indication
Positive Indications:
Thursday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Prime Medicine (PRME) closed down -$1.49 with a positive +$0.62 or +4.94% 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.”
Sector divergence, weak breadth and many equities falling remains an issue; while the Nasdaq moved slightly higher.
As I stated, I wouldn’t buy into ANY rally during earnings reporting season, I’d be selling and I have been RIGHT.
This week’s special, sector earnings continue rolling out … just one (1) NET INCOME to date yet, 28 net losses.
The cell and gene therapy sector could experience yet another the “flight of Icarus” … since “our” universe have oscillated between gains and losses since the first of 2023!
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.
