June 7, 2024 9:29am
Wednesday’s Alchemy was again converted, as “uncle algo and his electronic trading dwarfs” exited stage right before a key U.S. economic report.
The days of being long are not the strongest investing rationale as the cell and gene therapy sector runs out of buyers, it runs into trouble (just like a fire that runs out of wood).
I say today what others won't, so you can do what others can't!
Never leave an investor uninformed!
I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”
I answer or qualify the sector’s equity’s share pricing mobility; with an emphasis on which company is gaining or losing stride in your portfolio for the short and near-term
Thursday: The Dow closed UP +78.84 points or +0.20%, the S&P closed DOWN -1.07 points or -0.02% while the Nasdaq closed DOWN -14.78 points or -0.09%
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 were mixed as the S&P and Nasdaq slipped as traders look ahead to May’s payroll report.
- Investors are on waiting for signs of a weakening labor market, which could support rate cuts from the Fed.
- Tomorrow, economists expect a jobs gain of 190,000. <CNBC>
Economic Data Docket: jobless claims and the trade deficit moved higher, while labor costs were less than expected.
- Initial filings for unemployment benefits for the week ending June 1 totaled 229,000, up 8,000 from the previous week and higher than the 220,000 estimate, according to the U.S. Department of Labor. Continuing claims were little changed at 1.79 million.
- The trade deficit for April rose to $74.6 billion, up $6 billion from March but lower than the $76.5 billion Dow Jones estimate, according to the U.S. Census Bureau.
- Revisions showed nonfarm productivity up 0.2% for the first quarter while unit labor costs increased 4%, according to the Bureau of Labor Statistics. Economists were looking for flat productivity and a 5% rise in labor costs.
RegMed Investors’ (RMi) pre-open post: none … as I knew the session would be a BUST and I needed to finish the “honey do” list that had gotten longer and longer.
Advance/Decline (A/D) Line:
- Thursday’s advance/decline line at the open was negative with 9 incliner, 23 decliners and 3 flats; ending with a negative close of 8 incliners, 23 decliners and 4 flats
Ebb and flow of MY covered sector cell and gene therapy session daily “endings”:
- June: 2 positive and 2 negative closes
- May: 1 holiday, 11 positive and 11 negative closes
- April: 16 negative and 6 positive closes
Key Metrics:
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
Thursday, the IBB was down -0.33% and the XBI was down -1.38%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Thursday was down -0.09 point or -0.71% at 12.54
Thursday’s Closing Down (10 of 23):
- Voyager Therapeutics (VYGR -$0.22 after Wednesday’s +$0.19),
- MiMedx (MDXG -$0.24),
- Beam Therapeutics (BEAM -$0.42),
- Mesoblast MESO -$0.46 after Wednesday’s -$0.30, Tuesday’s +$0.20 and Monday’s -$0.06),
- Regenxbio (RGNX -$0.76 after Wednesday’s +$0.20, Tuesday’s -$0.44 and Monday’s +$0.41),
- BioLife Solutions (BLFS -$0.78 after Wednesday’s +$0.63, Tuesday’s -$0.35 and Monday’s -$0.22),
- Agenus (AGEN -$1.01),
- Lenz Therapeutics (LENZ -$1.09 after Wednesday’s +$1.45, Tuesday’s -$0.40 and Monday’s -$0.21),
- Blueprint Medicine (BPMC -$1.40 after Wednesday’s +$3.93, Tuesday’s -$2.95 and Monday’s -$0.72),
- Alnylam Pharmaceuticals (ALNY -$2.76 after Wednesday’s +$2.30, Tuesday’s -$0.69 and Monday’s +$2.02),
Flat (4):
- Bellicum Pharmaceuticals (BLCM) – dropped)
- Harvard Apparatus RT (OTCQB: HRGN – its 13th flat sessions)
- Homology Medicine (FIXX) – under $1.00
- Ionis Pharmaceuticals (IONS)
Thursday’s Closing Up (8 of 8):
- Ultragenyx Pharmaceuticals (RARE +$0.32 after Wednesday’s+$0.53),
- Prime Medicine (PRME +$0.31),
- CRISPR Therapeutics (CRSP +$0.24)
- Fate Therapeutics (FATE +$0.04),
- AxoGen (AXGN +$0.04),
- Generation BIO (GBIO +$0.03),
- Compass Therapeutics (CMPX +$0.02 after Wednesday’s -$0.05),
- Sangamo Therapeutics (SGMO +$0.0063),
Q2/24 – June
- Thursday closed negative with 8 incliners, 23 decliners and 4 flats
- Wednesday closed positive with 24 incliners, 9 decliners and 3 flats
- Tuesday closed negative with 13 incliners, 19 decliners and 3 flats
- (6/3) Monday closed positive with 18 incliners, 14 decliners and 3 flats
The BOTTOM LINE: Haven’t changed my words…
“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’s ability or capacity to STAY upward.” <me>
- Friday’s nonfarm payrolls report for May is forecast by economists to show U.S. unemployment at 3.9%, according to FactSet. If the jobless rate comes in at 3.9% or less, that will prove “the longest stretch of sub-4% unemployment since the early 1950s,” according to a research report this week by Deutsche Bank macro strategist Henry Allen.
Thursday, the cell and gene therapy sector ended in the toilet after Wednesday’s return to the upside after popping the bed in decline on Tuesday as investors weighed signs the US economy might be starting to show cracks.
Reflect on the numbers, for the week:
- The S&P 500 is up 75.45 points, or 1.4%.
- The Dow is up 199.85 points, or 0.5%.
- The Nasdaq is up 438.11 points, or 2.6%.
- The Russell 2000 is down 20.69 points, or 1%.
For the year:
- The S&P 500 is up 583.13 points, or 12.2%.
- The Dow is up 1,196.63 points, or 3.2%.
- The Nasdaq is up 2,161.77 points, or 14.4%.
- The Russell 2000 is up 22.37 points, or 1.1%.
Every time I see new highs, I say BYE!
Reiterating, “Net-net I am still expecting a bumpy ride for US equities as we stride through the month of June.”
The top three (3) performing in the session:
- Thursday: Ultragenyx Pharmaceuticals (RARE), Prime Medicine (PRME) and CRISPR Therapeutics (CRSP),
- Wednesday: Blueprint Medicine (BLMC), Lenz Therapeutics (LENZ) and CRISPR Therapeutics (CRSP),
- Tuesday: CRISPR Therapeutics (CRSP), Ionis Pharmaceuticals (IONS) and Mesoblast (MESO)
- Monday: CRISPR Therapeutics (CRSP), Intellia Therapeutics (NTLA) and Alnylam Pharmaceuticals (ALNY),
The worst three (3) in the session:
- Thursday: Alnylam Pharmaceuticals (ALNY), Blueprint Medicine (BLMC) and Lenz Therapeutics (LENZ)
- Wednesday: Mesoblast (MESO), Intellia Therapeutics (NTLA) and Ionis Pharmaceuticals (IONS)
- Tuesday: Blueprint Medicine (BLMC), BioLife Solutions (BLFS) and Lenz Therapeutics (LENZ)
- Monday: Blueprint Medicine (BLMC), Vericel (VCEL) and Caribou Biosciences (CRBU)
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!”
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. 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.
Henry McCusker, the editor, and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication. 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.
