July 9, 2024 4:40pm

Reflects an uncertainty continuum as sector rebounds as fear builds in the sector, earnings season advances while the summer pullback gains and loses momentum

As Fed Chair Powell in his twice-yearly policy update to Congress said he's encouraged by evidence of cooler inflation, but that the Fed still needs more "good data" to be confident that inflation is moving towards its 2% target.

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! 

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

 

Tuesday: The Dow closed DOWN -52.82 points or -0.13%, the S&P closed UP +4.13 points or +0.07% while the Nasdaq closed UP +25.55 points or +0.14%

Tuesday’s advance/decline line at the open was negative with 10 incliner,21 decliners and 4 flats; ending with a positive close of 19 incliners, 12 decliners and 4 flats

  • the IBB was up +0.82% and the XBI was up +1.22%
  • the VIX was up +0.13 point or +1.05% at 12.50

Economic Data Docket: Fed chair Powell said in prepared remarks that keeping interest rates elevated for too long could risk further economic growth, seemingly hinting that the central bank is considering taking a less restrictive stance.

 

Monday - Follow-on Comparisons:

Monday: The Dow closed DOWN -31.08 points or -0.08%, the S&P closed UP +5.66 points or +0.10% while the Nasdaq closed UP +50.98 points or +0.28%

Monday’s advance/decline line at the open was positive with 26 incliner, 6 decliners and 3 flats; ending with a positive close of 24 incliners, 8 decliners and 3 flats

  • the IBB was up +1.12% and the XBI was up +1.66%
  • the VIX was down -0.11 point or -0.88% at 12.37

Economic Data Docket: June consumer price index (CPI) will be released Thursday, and producer price index (PPI) data will be released Friday.

 

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 as the S&P 500 climbed to a fresh record Tuesday after Fed Chair Jerome Powell warned about the dangers of keeping interest high for too long.

  • “The labor market has been weakening and Powell is starting to pay attention,” said David Russell, global head of market strategy at TradeStation. “He recognizes that policy is restrictive and progress has been made on inflation. This potentially lays the groundwork for a ‘Powell put’ later in the year.” <CNBC>

 

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

Q3/24

  • July: 1 market holiday. 1 day off, 2 negative, 1 neutral (Friday) and 2 positive (2nd Monday and Tuesday of month) closes

Q2/24 -June: 1 market holiday, 7 positive and 12 negative closes

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

 

Tuesday’s Closing Down (12 of 12):

  • BioLife Solutions (BLFS -$1.26 after Monday’s +$0.46),
  • Blueprint Medicine (BPMC -$1.07 after Monday’s +$4.62),
  • Vericel (VCEL -$0.89),
  • Intellia Therapeutics (NTLA -$0.68),
  • Alnylam Pharmaceuticals (ALNY -$0.37 after Monday’s +$4.08),
  • Ionis Pharmaceuticals (IONS -$0.20 after Monday’s +$1.15),
  • Mesoblast (MESO -$0.14 after Monday’s -$0.01),
  • Cellectis SA (CLLS -$0.105 after Monday’s -$0.01),
  • Solid Biosciences (SLDB -$0.09 after Monday’s +$0.88),
  • Regenxbio (RGNX -$0.04 after Monday’s -$0.27),
  • Brainstorm Cell Therapeutics (BCLI -$0.0154 after Monday’s -$0.0087),
  • Beam Therapeutics (BEAM -$0.01 after Monday’s +$0.77

Flat (4):

  • Bellicum Pharmaceuticals (BLCM) – dropped)
  • Harvard Apparatus RT (OTCQB: HRGN $0.00 after Monday’s $0.00),
  • Homology Medicine (FIXX) – under $1.00
  • Precigen (PGEN)

Tuesday’s Closing Up (10 of 19):

  • uniQure NV (QURE +$2.89 after Monday’s -$0.06),
  • CRISPR Therapeutics (CRSP +$1.80),
  • Ultragenyx Pharmaceuticals (RARE +$0.76 after Monday’s +$0.61),
  • Verve Therapeutics (VERV +$0.61 after Monday’s +$0.42),
  • Sage Therapeutics (SAGE +$0.53),
  • Adverum Biotechnologies (ADVM +$0.29),
  • Lenz Therapeutics (LENZ +$0.23 after Monday’s +$0.33),
  • Voyager therapeutics (VYGR +$0.19),
  • Prime Medicine (PRME +$0.13),
  • AxoGen (AXGN +$0.09)

 

The BOTTOM LINE:  A good start into the 2nd week of July may NOT ensure a gain for the rest of week and month.

  • Down morning session, to an up-closing session

Q3 and July to date:

  • Tuesday ended with a positive close of 19 incliners, 12 decliners and 4 flats
  • Monday ended with a positive close of 24 incliners, 8 decliners and 3 flats
  • Friday ended with a neutral close of 16 incliners, 16 decliners and 3 flats
  • Thursday was a market holiday
  • Wednesday was a day off
  • Tuesday ended with a negative close of 6 incliners, 19 decliners and 3 flats
  • (7/1) Monday ended with a negative close of 13 incliners, 19 decliners and 3 flats

 

So, I am not bullish because the cell and gene therapy sector always … kind of moves along however (versus but), there is evidence of a slowdown coming and it's going to become, I think, even more thin as we go forward.

 

Fed Chair Powell says holding rates high for too long could jeopardize economic growth.

 

“Stuff” happens:  the sector was in a tug-of-war this day having open with an advance/decline line of 10 incliners, 21 decliners and 4 flats.

  • The Nasdaq was back in positive territory by 0.08% in the stock market today as it struggled to add another day to its four-day streak of record-high closes while volume was lower.

 

The top three (3) performing in the session:   

  • Tuesday: uniQure NV (QURE), CRISPR Therapeutics (CRSP) and Ultragenyx Pharmaceuticals (RARE)
  • Monday: Blueprint Medicine (BPMC), Alnylam Pharmaceuticals ALNY) and Ionis pharmaceuticals (IONS)

The worst three (3) in the session:   

  • Tuesday: BioLife Solutions (BLFS), Blueprint Medicine (BPMC) and Vericel VCEL)
  • Monday: Regenxbio (RGNX), uniQure NV (QURE) and Fate Therapeutics (FATE)

 

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.