June 11, 2024 4:54pm

The real question is what further risks will be expected in relation to share pricings; while investors brace for a Fed policy decision and key inflation data this week

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.”

The RegMed sector needs to “decant” the algorithmic and electronic trading tourist routine … and UNDERSTAND how and when they pump to buy and dump to sell.

 

Tuesday: The Dow closed DOWN -120.62 points or -0.31%, the S&P closed UP +14.53 points or +0.27% while the Nasdaq closed UP +151.02 points or +0.88%

 

RegMed Investors’ (RMi) pre-open post: “Waiting for Jerome as the May CPI and start of June’s Fed policy meeting conclude on Wednesday with an interest rate or no-cut policy decision befitting … or not our universe of cell and gene therapy companies.” … https://www.regmedinvestors.com/articles/13494

 

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 algos and electronic trading hopped from the stage.

Friday’s jobs report will be the most important data of the week for markets, with economists polled by Dow Jones expecting 190,000 jobs were added in May, up from 175,000 in April.

Economic Data Docket: The Fed’s latest rate decision and May’s consumer price index that are expected Wednesday could prove key tests for markets, especially after Friday’s strong jobs report continued to suggest the central bank could hold off on lowering rates.

  • The Fed meeting announcement will take place on Wednesday at 2 p.m. ET. The central bank also will release its latest economic projections as well as policymakers' "dot-plot" rate outlook.

 

Metrics & Advance/Decline (A/D) Line:

Tuesday’s advance/decline line at the open was negative with 6 incliner, 24 decliners and 5 flats; ending with a negative close of 16 incliners, 17 decliners and 2 flats

  • Tuesday, the IBB was down -0.09% and the XBI was up +0.51%
  • Tuesday, The VIX up +0.21 point or +1.65% at 12.95

Monday’s advance/decline line at the open was negative with 16 incliner, 6 decliners and 3 flats; ending with a positive close of 24 incliners, 7 decliners and 4 flats

  • Monday, the IBB was up +0.16% and the XBI was up +0.66%
  • Monday, the VIX was up +0.52 point or +4.26% at 12.74

 

Ebb and flow of MY covered sector cell and gene therapy session daily “endings”:

  • June: 3 positive and 4 negative closes

 

Tuesday’s Closing Down (10 of 17):

  • Ultragenyx Pharmaceuticals (RARE -$0.57 after Monday’s +$0.57),
  • Agenus (AGEN -$0.39 after Monday’s +$0.57),
  • Solid Biosciences (SLDB-$0.31 after Monday’s -$0.24),
  • Sage Therapeutics (SAGE -$0.30),
  • Prime Medicine (PRME -$0.26 after Monday’s +$1.11),
  • Vericel (VCEL -$0.22 after Monday’s -$0.85),
  • Adverum Biotechnologies (ADVM -$0.19),
  • uniQure NV (QURE -$0.15),
  • Regenxbio (RGNX -$0.13 after Monday’s -$0.37),
  • BioLife Solutions (BLFS -$0.11 after Monday’s +$1.22),

Flat (2):

  • Bellicum Pharmaceuticals (BLCM) – dropped)
  • Homology Medicine (FIXX) – under $1.00

Tuesday’s Closing Up (10 of 16):

  • Alnylam Pharmaceuticals (ALNY +$2.96 after Monday’s +$0.69)
  • CRISPR Therapeutics (CRSP +$2.32 after Monday’s +$2.12),
  • Blueprint Medicine (BPMC +$1.36),
  • Lenz Therapeutics (LENZ +$1.18 after Monday’s +$2.21),
  • Intellia Therapeutics (NTLA +$0.47 after Monday’s +$0.55),
  • Beam Therapeutics (BEAM +$0.46 after Monday’s +$1.19
  • AxoGen (AXGN +$0.38),
  • Generation Bio (GBIO +$0.13 after Monday’s -$0.27),
  • Mesoblast (MESO +$0.11),
  • Editas Medicine (EDIT +$0.11),

 

The BOTTOM LINE: New week, 2nd session … raises the question of whether the sector gets frothy yet again.

Sentiment is not partial to daily activity … too hot or too cold for comfort.

Tuesday, the cell and gene therapy sector equities drifted lower, retreating from Monday’s highs as traders and their electronic counter mates …  forget investors waited for the start of a Fed meeting that should signpost the path of interest rates.

Last week: the cell and gene therapy sector, ended Friday and Thursday ended in the toilet after Wednesday’s positive close Tuesday negative close following Monday’s positive close.

Reiterating, “Net-net I am still expecting a bumpy ride for US equities as we stride through the month of June.”

 

The big events of the week are tomorrow. The consumer price index for May will set the tone at 8:30 a.m. ET. A cooler-than-expected report would be a boon for stocks and likely lead to encouraging comments from Federal Reserve Chair Jerome Powell at his Federal Open Market Committee meeting press conference.

A hot report could threaten recent gains, especially if it forces Powell to walk back his view that monetary policy is restrictive enough to tame inflation.

  • Andrew Brenner, head of international fixed income at NatAlliance Securities, called it one of the most important CPI numbers in a Tuesday note to clients. He points out one would expect bond traders to react defensively, but instead prices rallied and yields fell on the strong auction.

That tells you the market is signaling it expects a cool CPI report and a dovish Powell press conference. <Barrons>

 

The top three (3) performing in the session:  

  • Tuesday: Alnylam Pharmaceuticals (ALNY), CRISPR Therapeutics (CRSP) and Blueprint Medicine (BPMC)
  • Monday: Lenz Therapeutics (LENZ), CRISPR Therapeutics (CRSP) and BioLife Solutions (BLFS)

The worst three (3) in the session:  

  • Tuesday: Ultragenyx Pharmaceuticals (RARE), Agenus (AGEN) and Solid Biosciences (SLDB)
  • Monday: Vericel (VCEL), Regenxbio (RGNX) and Solid Biosciences (SLDB)

 

Maintain this thought process, Sam Stovall, chief investment strategist at CFRA, said inflation is still lingering at elevated levels, causing lasting concerns among investors.

  • “For me, the big worry is that the Fed has not gone far enough for long enough,” he told CNBC in a recent interview.
  • “I think that at least is going to keep us sort of range bound, and probably stop the markets going much further in the near term.”

In fact, in the next few weeks, Stovall sees the market pulling back at least 5% in a mild correction.

 

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 it’s 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.