June 28, 2024 5:08pm

The end of the week, Q2 and 1stH (half), presidential debate and the core PCE price index release

News: Agenus (AGEN +$2.63) announced results from an investigator-sponsored trial (IST) of botensilimab and balstilimab (BOT/BAL) in the neoadjuvant setting for colon cancer. Pathologic Response: In the NEST-2 cohort, 78% (7/9) of MSS patients achieved pathologic responses of at least 50% tumor regression, with 56% (5/9) reaching complete pathologic responses.

I say today what others won't, so you can do what others can't by sticking to the FACTS!

Never leave an investor uninformed!

The week in review

I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”

 

Friday: The Dow closed DOWN -45.20 points or -0.12%, the S&P closed DOWN -22.39 points or -0.41% while the Nasdaq closed DOWN -126.08 points or -0.71%

 

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 ticked lower Friday as traders digested the PCE price index data that indicated slowing inflation, as well as better-than-expected consumer sentiment figures counting down to the end of what has been a strong 1st H/24.

Economic Data Docket: The personal consumption expenditures (PCE) index slowed as Core PCE, which excludes the more volatile food and energy prices, rose just 0.1% last month and 2.6% from the prior year.

  • A 0.4% decline in the prices of goods helped to offset a 0.2% increase in the cost of services. Food prices rose 0.1% over the course of May, while energy prices tumbled 2.1%.
  • The consumer sentiment index for June came in higher than expected, rising to 68.2 from the preliminary 65.6 reading. The one-year inflation outlook fell to 3% from 3.3% expected in May.

 

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

Friday’s advance/decline line at the open was negative with 10 incliner, 22 decliners and 3 flats; ending with a negative close of 13 incliners, 19 decliners and 3 flats

  • the IBB was down -0.47% and the XBI was down -0.16%
  • the VIX up +0.20 point or +1.63% at 12.44

Thursday’s advance/decline line at the open was positive with 18 incliner, 14 decliners and 3 flats; ending with a positive close of 18 incliners, 13 decliners and 4 flats

  • the IBB was down -0.01% and the XBI was up +0.73%
  • the VIX down -0.31 point or -2.47% at 12.24

Wednesday’s advance/decline line at the open was negative with 8 incliner, 24 decliners and 3 flats; ending with a negative close of 9 incliners, 22 decliners and 4 flats

  • the IBB was down -1.15% and the XBI was down -0.96%
  • the VIX down -0.34 point or -2.65% at 12.50

Tuesday’s advance/decline line at the open was negative with 10 incliner, 20 decliners and 5 flats; ending with a negative close of 11 incliners, 22 decliners and 2 flats

  • the IBB was down -0.43% and the XBI was down -0.70%
  • the VIX down -0.41 point or -3.08% at 12.92

Monday’s advance/decline line at the open was positive with 22 incliner, 9 decliners and 4 flats; ending with a positive close of 24 incliners, 8 decliners and 3 flats

  • the IBB was up +1.91% and the XBI was up +1.60%
  • the VIX was up +0.13 point or +0.98% at 13.33

 

52-week low:

  • Editas Medicine (EDIT at $4.63

 

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

  • June: 1 market holiday, 7 positive and 12 negative closes
  • May – 1 holiday, 11 positive and 11 negative closes
  • April - 16 negative and 6 positive closes

 

Friday’s Closing Down (10 of 19):

  • Alnylam Pharmaceuticals (ALNY -$4.00 after Thursday’s +$1.83, Wednesday’s +$5.02, Tuesday’s +$17.26 and Monday’s +$57.20
  • CRISPR Therapeutics (CRSP -$1.37 after Thursday’s -$1.25, Wednesday’s +$0.68, Tuesday’s -$1.99 and Monday’s +$1.70),
  • Vericel (VCEL -$1.03 after Thursday’s +$1.15, Wednesday’s +$0.87, Tuesday’s -$1.30 and Monday’s +$1.19) 
  • Intellia Therapeutics (NTLA -$0.81),
  • Blueprint Medicine (BPMC -$0.74 after Thursday’s +$4.60, Wednesday’s -$2.47, Tuesday’s +$0.45 and Monday’s +$1.87)
  • Beam Therapeutics (BEAM -$0.55 after Thursday’s -$0.86, Wednesday’s +$0.59, Tuesday’s -$0.58 and Monday’s +$1.89),
  • Lenz Therapeutics (LENZ -$0.52 after Thursday’s +$0.77, Wednesday’s -$0.65, Tuesday’s -$0.44 and Monday’s -$0.28),
  • Ultragenyx Pharmaceuticals (RARE -$0.32 after Thursday’s +$0.89, Wednesday’s +$0.68, Tuesday’s +$0.43 and Monday’s -$0.18),
  • Compass Therapeutics (CMPX -$0.20 after Thursday’s +$0.14 and Wednesday’s $0.00)
  • Prime Medicine (PRME -$0.19 after Thursday’s +$0.26, Wednesday’s -$0.82, Tuesday’s -$0.35),

Flat (3):

  • Bellicum Pharmaceuticals (BLCM) – dropped)
  • Harvard Apparatus RT (OTCQB: HRGN $0.00 after Tuesday’s +$0.25 with 100 shares traded)
  • Homology Medicine (FIXX) – under $1.00

Friday’s Closing Up (10 of xx):

  • Agenus (AGEN +$2.63 after Thursday’s -$0.09, Wednesday’s -$0.66, Tuesday’s -$0.36 and Monday’s +$0.67),
  • BioLife Solutions (BLFS +$0.93 after Thursday’s -$0.99 and Wednesday’s +$0.13),
  • Ionis Pharmaceuticals (IONS +$0.43 after Thursday’s -$0.47, Wednesday’s +$0.70, Tuesday’s +$2.32 and Monday’s +$2.85),
  • Sage Therapeutics (SAGE +$0.17 after Thursday’s -$0.15),
  • MiMedx (MDXG +$0.17),
  • Verve Therapeutics (VERV +$0.12 after Thursday’s -$0.26 and Wednesday’s -$0.21),
  • Precigen (PGEN +$0.07 after Thursday’s -$0.04),
  • Regenxbio (RGNX +$0.07 after Thursday’s +$0.12, Wednesday’s -$0.81, Tuesday’s -$0.47 and Monday’s +$0.77),
  • Voyager Pharmaceuticals (VYGR +$0.05),
  • bluebird bio (BLUE +$0.0365),
  • AxoGen (AXGN +$0.02 after Thursday’s -$0.28 after Wednesday’s +$0.22 after Tuesday’s +$0.05),
  • Fate therapeutics (FATE +$0.015),
  • Cellectis SA (CLLS +$0.01 after Thursday’s -$0.01)

 

The end of week and month to date:

  • Friday ended with a negative close of 13 incliners, 19 decliners and 3 flats
  • Thursday ended with a positive close of 18 incliners, 13 decliners and 4 flats
  • Wednesday ended with a negative close of 9 incliners, 22 decliners and 4 flats
  • Tuesday ended with a negative close of 11 incliners, 22 decliners and 2 flats
  • (6/24) Monday ended with a positive close of 24 incliners, 8 decliners and 3 flats
  • Friday ended with a positive close of 22 incliners, 10 decliners and 3 flats
  • Thursday ended with a negative close of 10 incliners, 21 decliners and 4 flats
  • Wednesday was a market holiday
  • Tuesday ended with a negative close of 6 incliners, 26 decliners and 3 flats
  • (6/17) Monday ended with a negative close of 8 incliners, 23 decliners and 4 flats
  • Friday ended with a negative close of 4 incliners, 29 decliners and 2 flats
  • Thursday ended with a negative close of 14 incliners, 18 decliners and 3 flats
  • Wednesday ended with a positive close of 24 incliners, 8 decliners and 3 flats
  • Tuesday ended with a negative close of 16 incliners, 17 decliners and 2 flats
  • (6/10) Monday ended with a positive close of 24 incliners, 7 decliners and 4 flats
  • Friday ended with a negative close of 7 incliners, 24 decliners and 4 flats
  • Thursday ended with a negative close of 8 incliners, 23 decliners and 4 flats
  • Wednesday ended with a positive close of 24 incliners, 9 decliners and 3 flats
  • Tuesday ended with a negative close of 13 incliners, 19 decliners and 3 flats
  • (6/3) Monday ended with a positive close of 18 incliners, 14 decliners and 3 flats

 

The BOTTOM LINE: Never overlook the weekly ripple effect of negative/positive spurts in the sectors daily sessions throughout the week, month and quarter.

Sector equites (within my cover ed 35 large group) flipped Friday negative after Thursday’s positive close, diving on Wednesday and Tuesday’s negative and Monday’s positive closes.

  • Volume was lower on the Nasdaq and higher on the NYSE compared to the same Thursday. After trading down to 4.26%, the 10-year Treasury reversed higher and was trading around 4.32%.
  • As previously reported, weekly initial jobless claims for the week ended June 22, were 233,000 vs. the 236,000 expected and below a revised 239,000 from the prior week.

 

As the US is in an election year, financial markets are bracing for potential volatility. Last night’s presidential debate between Biden and Trump has heightened the focus on the political landscape and its impact on economic conditions. <Yahoo Finance>

 

I have written to become more cautious on sector equities …

  • “Investors need to reassess their portfolio strategies… as I had stated: We are also about to see share pricing rotation or profit taking as Q2 and 1st H (first half) ends this Friday and as sector companies prepare for LPS (loss-per-share) quarterly earnings releases.  So, what are share pricing themes that investors can be comfortable with for a short or near- term time horizon i.e., Q3?” <me>

 

Some part of the why: good and bad

  • Traders were reacting to the latest personal consumption expenditures price index, which matched expectations, as well as the presidential debate that had political commentators questioning whether President Joe Biden should step aside and allow another candidate to seek the Democratic Party nomination. <Barron’s>
  • Nasdaq is set to close out the 1st H/24 at record levels.
  • The latest Personal Consumption Expenditures (PCE) data for May came in line with analyst expectations, with a reading of 2.6%.

 

Let get to 3 things that you need to know for Wednesday as you prep for the next trading day …

  • 4th week—2 positive and 3 negative closes
  • 3rd week of June, the cell and gene therapy sector experienced 1 market holiday, 3 negative closes and ended Friday with a positive close as options were covered
  • 2nd week of June … negative closes on Friday and Thursday after Wednesday ascended positively as Tuesday drifted lower, retreating from Monday’s highs.
  • 1st week of June: Friday and Thursday ended in the toilet after Wednesday’s positive close Tuesday negative close following Monday’s positive close.

 

The top three (3) performing in the session:   

  • Friday: Agenus (AGEN), BioLife Solutions (BLFS) and Ionis Pharmaceuticals (IONS)
  • Thursday: Blueprint Medicine (BPMC), Vericel (VCEL) and Alnylam Pharmaceuticals (ALNY)
  • Wednesday: Alnylam Pharmaceuticals (ALNY), Vericel (VCEL) and Ionis Pharmaceuticals (IONS)
  • Tuesday: Alnylam Pharmaceuticals (ALNY), Ionis Pharmaceuticals (IONS) and Blueprint Medicine (BPMC)  
  • Monday: Alnylam Pharmaceuticals (ALNY), Ionis Pharmaceuticals (IONS) and Prime medicine (PRME)

The worst three (3) in the session:   

  • Friday: Alnylam Pharmaceuticals (ALNY), Blueprint Medicine (BPMC) and CRISPR Therapeutics (CRSP)
  • Thursday: BioLife Solutions (BLFS), CRISPR Therapeutics (CRSP) and Beam Therapeutics (BEAM)
  • Wednesday: Intellia Therapeutics (NTLA), Blueprint Medicine (BPMC) and Lenz Therapeutics (LENZ)
  • Tuesday: CRISPR Therapeutics (CRSP), Vericel (VCEL) and Intellia Therapeutics (NTLA)  
  • Monday: Lenz Therapeutics (LENZ), Ultragenyx Pharmaceuticals (RARE) and Mesoblast (MESO)

 

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.