May 31, 2024 7:40am

Ahead of a key inflation report, weak sector breadth and backlash related to our justice system

Pre-open Indication: 3 Sell into Strength Indications   

A daily analytic read-out from RMi is constructed by specific warnings of challenging share pricing situations

Never leave an investor uninformed

 

Remember that overnight and pre-open actions’ futures and markets doesn't necessarily translate into actual trading in the today’s market session.

 

Friday: The pre-open Dow futures are DOWN -0.10% or (-39 points), the S&P futures are DOWN -0.21% or (-11 points) as the Nasdaq futures are DOWN -0.37% or (-69 points)

U.S. stock futures ticked lower Friday, May 31, 2024,

European stocks were choppy after fresh euro zone data showed inflation picked up slightly in May

Asia-Pacific markets mostly rose as investors parsed data from major economies across the region.

 

Henry’omics:

We need to more than consider the economic environment to comprehend the micro re “our” universe of cell and gene therapy companies …

Thursday: The Dow closed DOWN -330.06 points or -0.86%, the S&P closed DOWN -31.47 points or -0.60% while the Nasdaq closed DOWN -183.50 points or -1.08%

Economic Data Docket: personal consumption expenditures price index report for April. Inflation is expected to come in at 2.7% for April, slightly down from slightly down from 2.8%, still above the central bank’s 2% target.

  • The Fed’s preference on PCE is a bit arcane, as the public focuses more on the Labor Department’s consumer price index, which has shown much higher trends. CPI inflation ran at 3.4% for the all-items measure in April and 3.6% for core, well above the Fed’s target. <CNBC>

 

Q2/24:  May – 1 holiday, 10 positive and 11 negative closes

•             April - 16 negative and 6 positive closes

 

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.

Sell into Strength indications:

Thursday, Wednesday, Tuesday, Monday was a holiday and last Friday’s closing “numbers” with aftermarket/pre-market dollar ($) and cent ($0.00) value and percentage (%)

Blueprint Medicine (BPMC) closed up +$5.79 after Wednesday’s -$1.79 after Tuesday’s -$0.45, Monday’s holiday and the previous Friday’s +$0.42 with a positive +$2.05 or +1.93% pre-open indication

Agenus (AGEN) closed up +$0.08 with a positive +$0.46 or +3.04% pre-open indication.

Sage Therapeutics (SAGE) closed up +$0.64 after Wednesday’s -$1.07, Tuesday’s +$0.15, Monday’s holiday and Friday’s +$1.27, the previous Thursday’s +$0.26, Wednesday’s +$0.79, Tuesday’s +$0.42 and Monday’s -$0.16 with a positive +$0.55 or +4.78% pre-open indication.

 

The BOTTOM LINE:  as the month of May comes to an end …

  • The sector has rolled, flattened, squashed and popped … direction less during the month of May.

“The impact of former President Donald Trump’s historic guilty verdict has yet to set in on Wall Street.”

  • But for traders, the question now is how the decision will impact markets that are already starting to prepare for the 2024 US elections — in which Trump will face off with President Biden.

“The stock market has a history of tuning out domestic political turmoil,” said Ed Yardeni, founder of Yardeni Research. “However, the political climate is clearly going to be even more volatile after the Trump verdict, which could increase volatility in the stock market.”

  • Only time will tell, I believe market participants are more polarized than have been!

 

Welcome to my world of defining the “grey’ in our universe!

•             Right up front, “I also hate to be so negative or contrarian but, this is a NO spin zone and facts are its product; I can always be WRONG but … I am mostly EARLY!”

•             The sector is what it is, until it isn’t and even then, it doesn’t seem to be… as NOT much changes as the sector’s share pricing rides the waves of volatility, algorithms, electronic trading and short covering.

•             Never forget, one of my usual lines. “The sector is … still what it is, until it isn’t and even then, it doesn’t seem to be … that is after taking a deep breath and holding it.”

•             I am more frequently right than consequentially wrong; if I wanted to be liked, I wouldn’t have been an analyst/journalist.

 

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.