May 24, 2023 7:39am
It could take a week to write any “deal” and pass it through Congress, raising the stakes to reach an agreement in the next couple days ahead of a June 1 deadline for default from the Treasury
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 DOWN -0.36% or (-120 points), S&P futures are DOWN -0.36% or (-15 point) and NASDAQ futures are -0.39% or (-53 points) early in the pre-open – so far
Stock futures are slipping as investors wait for debt ceiling news,
Europe stocks retreated as U.S. debt ceiling talks stumble,
Asia-Pacific markets slid on worries over China’s economy.
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 …
Tuesday, the S&P 500 lost -1.12%, the Nasdaq declined –1.26% while the Dow fell -0.69%.
Economic Data Docket: minutes from the Federal Reserve’s meeting earlier in May
Tuesday (5/23) … RegMed Investors’ (RMi) closing bell: “sector is affected by debt ceiling “talks” insinuating a Biden default. It’s not good until it isn’t; does anyone truly know what’s going on –with the cell and gene therapy started slipping?” … https://www.regmedinvestors.com/articles/12972
Ebb and flow:
Q2/23 – May – 7 negative and 10 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
Risky week as debt ceiling throws share pricing to the airstreams – “wind sox needed”
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!
Tuesday’s sector sell-down showed that taking at least partial profits in winning stocks is still a sound strategy.
Quoting again, “Debt-ceiling negotiations are a lose-lose for equity investors at this point, as a failure to strike a deal will lead to an immediate recession, while a deal will strain liquidity from markets as the US Treasury issues trillions in new bonds, which are newly born.” <Jose Torres, Interactive Brokers>
Supposedly, the U.S. government is forecast to run out of money to pay its bills as soon as June 1 if Congress doesn't increase the amount the Treasury is allowed to borrow. That would could seriously weigh on an already weakening global economy.
From the mouths of others, “Debt-ceiling talks continue with no deal imminent. House Speaker Kevin McCarthy said the two sides are "not anywhere near close" to a debt-ceiling deal. At the same time, President Joe Biden and House Republicans don't seem that far apart on provisions to raise the debt limit. Meanwhile, the recent uptrend in Treasury yields and the U.S. dollar may be finally weighing on stocks, along with various hints of weakening consumer spending.” <IBD>
What changes, everything re debt ceiling and nothing as far as “sector divergence, weak breadth with many equities riding the roller-coaster makes adding exposure an issue.”
Not a lot of stocks are offering buying opportunities at the moment.
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.
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.
