June 12, 2024 4:53pm

Powell holds interest rates steady, lowers forecast to 1 rate cut in 2024 as he tip-toes on the pressures the Fed faces -i.e. political re possible rate cuts?

Was today’s policy TV show to sustain the illusion and keep American investors in the dark about the Fed financial fiction they are and will be living? i.e., the Truman Show now the Powell Shuffle!

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.”

 

Wednesday: The Dow closed DOWN -35.21 points or -0.09%, the S&P closed UP +45.69 points or +0.85% while the Nasdaq closed UP +264.89 points or +1.53%

 

RegMed Investors’ (RMi) pre-open post: “The Powell Show, a bit more like the “Truman Show.” A short thriller with a scrip created to manage political/financial TV reality for dystopian fiction. June’s Fed policy meeting concludes 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/13496

 

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 closed mixed following a surprisingly encouraging update on inflation.

After the Fed’s latest policy announcement and May inflation data pointed to easing pricing pressures.

Economic Data Docket: The Fed held interest rates at a 23-year high Wednesday while scaling back its estimate of rate cuts this year to one from three previously as it keeps its benchmark interest rate in a range of 5.25%-5.50% at the conclusion of its two-day policy meeting. The fed funds rate has been in this range since July 2023.

The consumer price index was unchanged for the month of May, lower than the Dow Jones estimate for a 0.1% monthly increase.

  • Year over year, the inflation yardstick increased 3.3%, which also came in below expectations and represented a slowing from the prior 3.4% pace.
  • Monthly and yearly numbers for core CPI, which excludes the volatile prices associated with energy and food, were also lower than anticipated.

 

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

Wednesday’s advance/decline line at the open was positive with 29 incliner, 4 decliners and 2 flats; ending with a positive close of 24 incliners, 8 decliners and 3 flats

  • the IBB was up +0.73% and the XBI was up +1.47%
  • the VIX down -0.81 point or -6.30% at 12.04

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: 4 positive and 4 negative closes

 

Wednesday’s Closing Down (8 of 8):

  • Regenxbio (RGNX -$0.43 after Tuesday’s -$0.13 and Monday’s -$0.37),
  • Harvard Apparatus RT (OTCQB: HRGN -$0.40 after Tuesday’s -$0.07 and Monday’s $0.00)
  • Lenz Therapeutics (LENZ -$0.26 after Tuesday’s +$1.18 and Monday’s +$2.21),
  • Fate Therapeutics (FATE -$0.12),
  • Mesoblast (MESO -$0.11 after Tuesday’s +$0.11),
  • Cellectis SA (CLLS -$0.06),
  • Compass Therapeutics (CMPX -$0.02),
  • Sage Therapeutics (SAGE -$ after Tuesday’s -$0.30),
  • Sangamo Therapeutics (SAGE -$0.0053),

Flat (3):

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

Wednesday’s Closing Up (10 of 24):

  • Ultragenyx Pharmaceuticals (RARE +$3.24 after Tuesday’s -$0.57 and Monday’s +$0.57),
  • Alnylam Pharmaceuticals (ALNY +$2.61 after Tuesday’s +$2.96 and Monday’s +$0.69)
  • CRISPR Therapeutics (CRSP +$2.52 after Tuesday’s +$2.32 and Monday’s +$2.12),
  • Intellia Therapeutics (NTLA +$2.10 after Tuesday’s +$0.47 and Monday’s +$0.55),
  • Ionis Pharmaceuticals (IONS +$1.81 after Tuesday’s -$0.10 and Monday’s +$0.84),
  • Beam Therapeutics (BEAM +$1.81 after Tuesday’s +$0.46 and Monday’s +$1.19)
  • Blueprint Medicine (BPMC +$0.75 after Tuesday’s +$1.36),
  • AxoGen (AXGN +$0.68 after Tuesday’s +$0.38),
  • Editas Medicine (EDIT +$0.61 after Tuesday’s +$0.11),
  • Adverum Biotechnologies (ADVM +$0.56 after Tuesday’s -$0.19),

 

The BOTTOM LINE: New week, 2nd session … after a bumpy road to Wednesday, the cell and gene therapy sector ascended after Tuesday drifted lower, retreating from Monday’s highs.

  • 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.

 

The Fed signaled Wednesday it would lower interest rates just one time this year, down from the three cuts the central bank anticipated in its previous March projection.

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

  • The windsock was strong however … the wind or breeze are fleeting … as I perceive a mild correction in the atmosphere.
  • As the small cap-focused Russell 2000 headed for its best day since February as investors reacted to the latest monetary policy announcement. The index traded higher by about 1.6%.

 

Today, the Nasdaq rose 1.5%, also beating the all-time high it set a day earlier; I see highs, I say BYE!

 

The top three (3) performing in the session:  

  • Wednesday: Ultragenyx Pharmaceuticals (RARE). Alnylam Pharmaceuticals (ALNY) and CRISPR Therapeutics (CRSP)
  • 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:  

  • Wednesday: Regenxbio (RGNX), Harvard Apparatus RT (OTCQB: HRGN) and Lenz Therapeutics (LENZ)
  • Tuesday: Ultragenyx Pharmaceuticals (RARE), Agenus (AGEN) and Solid Biosciences (SLDB)
  • Monday: Vericel (VCEL), Regenxbio (RGNX) and Solid Biosciences (SLDB)

 

For the week: so far …

  • The S&P 500 is up 74.04 points, or 1.4%.
  • The Dow is down 86.78 points, or 0.2%.
  • The Nasdaq is up 475.31 points, or 2.8%.
  • The Russell 2000 is up 30.55 points, or 1.5%.

 

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.