May 19, 2023 7:27am
Don’t rule out nasty debt ceiling arguments and their result of a possible default as nearly every House (210) Democrats have endorsed an effort to make an end run around House Speaker McCarthy and bring a clean debt ceiling increase forward for a vote that doesn't include spending cuts for the federal government
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.
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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 +0.12% or (+40 points), S&P futures are UP +0.16% or (+6 point) and NASDAQ futures are UP +0.03% or (+4 points) early in the pre-open – so far
Stock futures inched higher Friday morning,
European markets were higher
Asia-Pacific markets largely rose
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 …
Indexes were mixed on Thursday afternoon as investors await updates to the ongoing debt ceiling debate with the Dow closed UP +115.14 points (+0.34%), the S&P closed UP +39.28 points (+0.94%) while the Nasdaq closed UP +188.27 points (+1.51%).
Stock market bullishness among individual investors keeps shrinking, falling to just 22.9% in the latest survey out Thursday, down from 29.4% last week. The historic average is 37.5%. Optimism is now at a 7-week low. <from the American Association of Individual Investors (AAII)>
Economic Data Docket: comments from Federal Reserve Chair Jerome Powell and New York Fed President John Williams are on deck.
Thursday (5/18) … RegMed Investors’ (RMi) closing bell: too many factors are calling the ball on share pricing. Sentiment, economics, conviction post earnings, and I believe the political aspect of the country’s leanings, polarization, and the elephant in the room - debt ceiling negotiations.” … https://www.regmedinvestors.com/articles/12966
Ebb and flow:
Q2/23 – May – 6 negative and 8 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
I have stepped-away from an up or down forecast this a.m. – the fog of factors crowding share pricing is escalation anxiety to markets ahead toward June.
The BOTTOM LINE:
I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all, as I try to keep it simple and short!
What changes, certainly nothing as “sector divergence, weak breadth and many equities falling remain an issue.”
As I stated, I wouldn’t buy into ANY rally or weakness, I’d be selling. Remember, it's not the news that matters, it's the market reaction to the news.
The cell and gene therapy sector is defined by the words in the sentence from the title, “When you’re on a roller coaster, the only thing you can be sure of is you’ll end up back where you started>”
The ride could be interrupted as “slowing to the downside, as the FTC's moved to challenge the Amgen-Horizon deal could be a precedent for blocking many biotech takeovers. So that could affect biotech, cell and gene therapy stocks for some time.
Investors should STILL be hesitant to add to positions – 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.
