June 2, 2023 8:11am
Yippee-Ki-Yay, a debt ceiling vote while Thursday's sector’ action was positive, but it was just one day. I would NOT be buying into new highs but, trimming and building more cash
Pre-open Indications: 2 Sell into Strength, 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.
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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 +0.50% or (+165 points), S&P futures are UP +0.48% or (+20 point) and NASDAQ futures are UP +0.55% or (+80 points) early in the pre-open – so far
Stock futures rose on Friday – ending this drama filled week,
European stock markets were higher
Asia-Pacific shares mostly 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 advanced on Thursday after the Dow closed UP +153.30 points (+0.47%), the S&P closed UP +41.19 points (+0.99%) while the Nasdaq closed UP +165.70 points (+1.28).
An on-target quote, ““Anytime a big negative or a big potential negative catalyst is removed, it helps remove some uncertainty from the market,” said Ross Mayfield, investment strategy analyst at Baird. “But at the same time, the equity market, at least, had really looked through this story.”
Economic Data Docket: nonfarm payrolls, the unemployment rate and hourly wages will highlight the challenges the Fed faces heading into the June policy meeting. Economists expect non-farm payrolls to rise by 190,000 in May, which would be a smaller monthly increase than the 253,000 added in April. They forecast an unemployment rate of 3.5%, slightly higher than the 3.4% seen in April.
· investors are looking ahead to the Fed’s June 13-14 policy meeting as another possible market catalyst.
Thursday (6/1) … RegMed Investors’ (RMi) closing bell: “the waiting period, while our universe of cell and gene therapy sneaks to the upside. As (defense) spending levels threaten to delay Senate plan to fast-track debt ceiling bill while Friday jobs data will highlight economic and inflation challenges.” … https://www.regmedinvestors.com/articles/12984
Ebb and flow:
Q2/23 – 1 positive close
· May – 10 negative and 12 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 Indication:
Thursday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Intellia Therapeutics (NTLA) closed up +$0.90 with a positive +$0.76 or +1.99% pre-open indication
Sell into Strength:
Thursday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Prime Medicine (PRME) closed up +$1.04 with a positive +$0.18 or +1.22% pre-open indication
Regenxbio (RGNX) closed up +$1.33 with a positive +$0.55 or +2.96% pre-open indication
Negative indications:
Thursday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Voyager Therapeutics (VYGR) closed up +$0.36 with a negative -$0.12 or -1.02% AFTERMARKET INDICATION
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!
The sector and market had a solid rally on Thursday; after starting off mixed, though they pared gains near the close. Market breadth was strong. Many cell and gene therapy sector equities made bullish moves having started the session fairly split with an advance/decline line of 18/15 and 2 flats.
As the debt ceiling votes ain’t over … the House OK'd the debt bill; I am NOT sure WHAT to believe about the NEXT status as the debt ceiling “deal” passes to the Senate for a vote.
Although below the surface worries have been rising about an economic slowdown under the weight of much higher interest rates.
Friday’s jobs report will influence expectations for the June Fed meeting. Rate hike odds plunged Wednesday as two Fed officials signaled, they favored a pause this month. Markets now see a 77% chance of a pause.
There is VALUE out there however, I am “parsing” and slowing forecasts anticipating a political “speedbump”!
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.
Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors. 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.
