June 12, 2023 7:41am
Traders are eyeing key inflation data and Fed meeting decisions
Pre-open Indications: 2 Positive, 1 Negative and 1 Sell into Strength Indications
News: Chinook Therapeutics (KDNY pre-open +$15.71 or +65.49%) enters into agreement to be acquired by Novartis AG (NVS). NVS to acquire KDNY for $40 per share in cash, with potential to receive up to an additional $4 per share in cash through contingent value rights, for a total equity value of up to approximately $3.5 billion
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 +0.06% or (+22 points), S&P futures are UP +0.23% or (+10 point) and NASDAQ futures are UP +0.48% or (+0.70 points) early in the pre-open – so far
U.S. futures are flying skyward on Monday
Europe stocks higher ahead of central bank meets;
Asia Pacific markets are 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 …
Indexes rose slightly Friday, as the Dow closed UP +43.63 points (+0.13%), the S&P closed UP +5.02 points (+0.12%) while the Nasdaq closed UP +20.62 points (+0.16%).
Friday (6/9) … RegMed Investors’ (RMi) closing bell: “the tug-a- war of algorithms siding with electronic trade versus downslides. Investors are waiting for next week’s potentially market-moving events, including the Fed’s next meeting on interest rates and updates on inflation as politics confuse the populace.” … https://www.regmedinvestors.com/articles/12996
Ebb and flow:
Q2/23 – 2 negative and 5 positive closes
· 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:
Friday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
CRISPR Therapeutics (CRSP) closed down Friday -$1.35 after Thursday’s -$0.18, Wednesday’s -$1.80, Tuesday’s +$1.54 and last Monday’s -$1.96 with a positive +$1.26 or +2.06% pre-open indication.
Chinook Therapeutics (KDNY) closed up +$0.04 with a positive pre-open +$15.71 or +65.49% entering into an agreement to be acquired by Novartis AG (NVS). NVS to acquire KDNY for $40 per share in cash, with potential to receive up to an additional $4 per share in cash through contingent value rights, for a total equity value of up to approximately $3.5 billion
Negative Indication:
Friday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Blueprint Medicines (BPMC) closed up Friday +$1.86 after Thursday’s -$3.42, Wednesday’s +$2.03, Tuesday’ +$1.98 and last Monday’s -$2.20 with a negative -$1.17 or -2% aftermarket indication
Sell into Strength:
Friday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Sage Therapeutics (SAGE) closed up +$2.84 after Thursday’s +$0.17, Wednesday’s +$2.79, Tuesday’ +$1.81 and last Monday’s +$2.11 with a neutral $0.00 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 stock market rally broadened last week, though that faded somewhat after Wednesday. The major indexes rose slightly for the week, with the Nasdaq and S&P 500 right at 2023 highs. But small caps and midcaps had another solid gain, with market breadth trending higher, despite losers leading Friday. <IBD>
There is STILL value out there however, I AM “parsing” and slowing forecasts anticipating a pullback or speedbump!
After Friday and Thursday closed down and Monday through Wednesday’s positive closes and with the Fed meeting on tap and the Nasdaq still close to being extended, investors have reasons to be cautious about new buys; yet, some stocks continue to flash buy signals.
Some credence about sector beyond NVS acquiring KDNY, positivity about biotech, Biogen (BIIB) stock jumped 6.2% to 328 in late trading after being halted during Friday's regular session. That signals a breakout from a brand-new flat base, which is part of a base-on-base formation. Eli Lilly stock rose 0.1% on Friday, not moving much on the FDA advisory panel vote just before the close. FDA approval of Biogen's Leqembi should be good news for Lilly's experimental Alzheimer's treatment donanemab. LLY stock has been consolidating near highs in the past few weeks.
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.
