October 6, 2023 7:46am

Some believe the monthly jobs report could be bad for stocks; should we take the release as a grain of salt given the recent surge in bond yields?

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Attention remains laser-focused on week’s busy economic calendar; there’s still a bit of hesitation in front of jobs data to really see the reality of the markets and the cell and gene therapy sector ability or capacity to move upward.

Never leave an investor uninformed

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 could happen or materialize

 

Dow futures are DOWN -0.59% or (-196 points), S&P futures are DOWN -0.82% or (-35 points) and NASDAQ futures are DOWN -0.89% or (-132 points) early in the pre-open – so far

U.S. stock futures slipped post Friday jobs report,

European stocks rose higher,

Asia-Pacific stocks were 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 dived Thursday as the Dow closed DOWN -9.98 points or -0.03%, the S&P closed DOWN -5.56 points or -0.13% while the Nasdaq closed DOWN -16.18 points or -0.12%.

Economic Data Docket: Nonfarm payrolls increased by 336,000 for the month, while economists surveyed by Dow Jones expected 170,000 jobs added.  The unemployment rate was 3.8%, slightly higher than the 3.7% consensus estimate.  

 

Thursday’s (10/5) RegMed Investors’ (RMi) closing bell: “I won’t apologize for providing need-to-know “facts in evidence. As equity’s volatility is one tactical signal for stocks. Concerns over bond yields, key jobs data and upcoming level of LPS (loss-per-share) earnings season’s “numbers” could be a forward factor to Friday and the next weeks” … https://www.regmedinvestors.com/articles/13151

 

Ebb and flow:

Q4: October – 2 positive and 2 negative closes

Q3:

·         September – 1 holiday, 8 positive and 12 negative closes

·         August – 9 positive and 14 negative closes

·         July - 1 holiday, 12 positive and 8 negative close

 

Companies in my headlights – It’s your decision; I provide ideas and context:

I post about “indication intelligence” devoting my time to collection and analysis of information to assist investors with insight into sector vulnerabilities and strengths. A dictionary definition of “indicate” refers to something less than a certainty; an indication could be a signal of being oversold or overbought, a recommendation, or grounds for inferring or a basis for believing.

I am passing on forecasting the daily indications – it’s just too mixed of some ups, downs and multiple flats i.e., going nowhere …

  • Insight is about understanding perception and also about putting into context what is relevant to expectation fulfillment,

 

The BOTTOM LINE: The cell and gene therapy sector's close slashed losses on Thursday, but they aren't done yet – I believe - as a follow-through day to confirm any uptrend.

  • Some sector equities need some share pricing repair hopefully supplemented with decent relative strength.
  • After 2 positive and 2 negative close in the new October, multiple weekly positive/negative closes followed by twelve (12) negative closes of twenty-one (21) in the month of September; hope springs eternal, which is NOT a technical indicator.

 

An appropriate note, “A defining moment is at hand for risk markets globally. The weight of the evidence suggests that this is still a buyable decline, but a failure of the S&P 500 to hold 4145 will strongly suggest that the bear market has returned.” <John Kolovos, chief technical market strategist at Macro Risk Advisors>

 

Weekly Economic Data Calendar - Friday:

  • Nonfarm payrolls, September (+170,000 expected, +187,000 previously);
  • Unemployment rate, September (3.7% expected, 3.8% previously);
  • Average hourly earnings, month-over-month, September (+0.3% expected, +0.2% previously);
  • Average hourly earnings, year-over-year, September (+4.3% expected, +4.3% previously);
  • Average weekly hours worked, September (34.4 expected, 34.4 previously);
  • Labor force participation rate, September (62.8% previously) < Josh Schafer is a reporter for Yahoo Finance>

 

I hate to be so negative or contrarian but, this is a NO spin zone and facts are its product; I am more frequently right than consequentially wrong but, I am mostly EARLY!

  • I am more frequently right than consequentially wrong; if you want to be liked, don’t be an analyst/journalist.

 

Timing is everything, “I learned very early (as a military officer), if you were 5 minutes early for a meeting, you were 10 minutes late – follow my lead by being EARLY in portfolio deliberations.”

 

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 could hold or have positions securities referred to in this publication and he will NOTIFY investors of holdings.