December 3, 2024 4:43pm
I warned Monday “waiting for the headwind” was eminent
It’s about defining insight. Who speaks out while standing in-front, beside and behind investors – RMi
Never leave an investor uninformed!
On point, short on words, long on facts and being judicious!
It’s hard to be right so often, it’s about defining insight.
Who speaks out while standing in-front, beside and behind investors – RMi
Tuesday: The Dow closed DOWN -76.47 points or -0.17%, the S&P closed UP +2.73 points or +0.05% while the Nasdaq closed UP +76.96 points or +0.40%
- Tuesday, indexes slivered up except Dow taking a breather
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
- Job openings (JOLTS) were higher in October compared to September; job openings hit a total of 7.74 M last month, topping the Dow Jones estimate of 7.5 M
- Hires came in at 5.31 M in the period, which is down 269 K on the month; bringing the hiring rate down to 3.3%.
Tuesday’s advance/decline line at the open was negative with 4 incliners, 30 declined and 1 flat; ending with a negative close at the close of 4 incliner, 30 decliners and 1 flat
- Sector takes a serious hit in share pricing
Metrics: Tuesday, the IBB was down -1.73%, the XBI was down -1.62% while the VIX was up +0.01 points or +0.08% at 13.35
Monday: The Dow closed DOWN -128.65 points or -0.29%, the S&P closed UP +14.77 points or +0.24% while the Nasdaq closed UP +185.78 points or +0.97%
- Adding to new gains as the S&P 500 and Nasdaq rose to new records
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
- Economic data indicated that the U.S. manufacturing sector improved in November, although it still remained in contraction… the ISM’s manufacturing index rose to 48.4, above the 0.5 reading in October and better than the of 47.5. The index measures the percentage of companies reporting expansion, so anything below 50 indicates contraction. Within the monthly survey, inventories, new orders and employment all showed gains while the prices index dropped 4.5 points to 50.3, an indication that inflation pressures are easing.
Monday’s advance/decline line at the open was positive with 25 incliners, 8 declined and 2 flats; ending with a positive close at the close of 25 incliner, 9 decliners and 1 flat
- As the cell and gene therapy sector grinds positively upward waiting for the headwind
Metrics: Monday, the IBB was up +0.18%, the XBI was down -0.31% while the VIX was down -0.17 points or -1.26% at 13.34
Ebb and flow of MY covered sector cell and gene therapy session daily “endings”:
Q4/24 – 1 positive and 1 negative closes
- November – 1 holiday, 10 negative and 10 positive closes
- October: 8 positive and 15 negative sessions
Tuesday’s Closing Down (10 of 30):
- CRISPR Therapeutics (CRSP -$3.91 after Monday’s +$3.98),
- Beam Therapeutics (BEAM -$2.32 after Monday’s +$0.92),
- Moderna (MRNA -$1.68 after Monday’s +$1.20)
- Lenz Therapeutics (LENZ -$1.64 after Monday’s +$1.77),
- Alnylam Pharmaceuticals (ALNY -$1.17 after Monday’s -$0.06),
- Blueprint Medicine (BPMC -$1.09 after Monday’s +$1.24),
- Intellia Therapeutics (NTLA -$1.08),
- Ultragenyx Pharmaceuticals (RARE -$0.93 after Monday’s -$0.03)
- uniQure NV (QURE -$0.72 after Monday’s +$1.16),
- Regenxbio (RGNX -$0.70)
Flat (1):
- Homology Medicine (FIXX)
Tuesday’s Closing Up (4 of 4):
- Mesoblast (MESO +$0.23),
- MiMedx (MDXG +$0.17),
- Harvard Apparatus RT (OTCQB: HRGN +$0.06 after Monday’s -$0.23 and Friday’s $0.00)
- Brainstorm Cell Therapeutics (BCLI +$0.02 after Monday’s -$0.04),
The BOTTOM LINE: cell and gene therapy sector stocks kicked off the final month of 2024 with a Monday positive followed by a Tuesday negative close
Indexes closed mixed on Tuesday as investors digested fresh jobs data and new Fed “speak” regarding the path forward for interest rates.
- Policymakers Mary Daly, Austan Goolsbee, and Adriana Kugler suggested rates will continue to fall as the central bank brings policy closer "to a more neutral setting."
- Fed Chair Powell is set to speak on Wednesday.
December is traditionally a good month for stocks, yet I see the sector range-bound and taking some hits into the end of 2024.
- Never forget end of year tax selling and portfolio rotation due to recommendations are a’comin’!
Investors are starting to count down to the November jobs report on Friday, a key input for the Fed's policy making, as well as to job openings and private payrolls readings.
Portfolio managers are addressing rotations as year comes to years-end.
- I keep writing about uncertainty and skepticism … and coming realities.
- Even with the potential for some market hiccups along the way, the good news is Q4 has historically skewed positively, even as sector earnings kicked the bucket down the road!
Why do I keep repeating, so investors can make the connection …
The top three (3) performing in the session:
- Tuesday: Mesoblast (MESO), MiMedx (MDXG) and Harvard Apparatus RT (OTCQB: HRGN)
- Monday: CRISPR Therapeutics (CRSP), Lenz Therapeutics (LENZ) and Verve therapeutics (VERV)
The worst three (3) in the session:
- Tuesday: CRISPR Therapeutics (CRSP), Beam Therapeutics (BEAM) and Moderna (MRNA)
- Monday: Harvard Apparatus RT (OTCQB: HRGN) and BioLife Solutions (BLFS)
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.
