December 12, 2024 7:34am
More econs and Nasdaq’s high put a focus on risk versus reward
Pre-open Indications: 1 Sell into Strength 4 Negative and 1 Positive Indications
Hotter than expected:
- The producer price index, which measures what producers get for their products at the final-demand stage, increased 0.4% for the month, higher than the consensus estimate for 0.2%. However, excluding food and energy, core PPI increased 0.2%, meeting the forecast. Also, subtracting trade services left the PPI increase at just 0.1%.
- 1st time claims for unemployment insurance totaled a seasonally adjusted 242,000 for the week ending Dec. 7, considerably higher than the 220,000 forecast and up 17,000 from the prior period.
Never leave an investor uninform
Remember that overnight and pre-open actions’ futures and markets doesn’t necessarily translate into actual trading in today’s market session.
My interpretation of the morning’s numbers is written to be informative; it’s built on what happened or will happen behind the headline today!
Wednesday’s night’s … RegMed Investors (RMi) Closing Bell: the cell and gene therapy sector is a pinata? … https://www.regmedinvestors.com/articles/13731
Thursday: The pre-open Dow futures are DOWN -0.09% or (-40 points), the S&P futures are DOWN -0.23% or (-14 points) and the Nasdaq futures are DOWN -0.50% or (-109 points)
- U.S. stock futures slid Thursday,
- European markets moved slightly lower,
- Asia-Pacific markets mostly rose.
Henry’omics: We need to more than consider the economic environment to comprehend the micro re “our” universe of cell and gene therapy companies
Wednesday, the Nasdaq finished above the 20,000 level for the 1st time; as I have written when I see new highs, I say bye; while the S&P 500 added +0.8% the Dow fell -0.2%.
Economic Data Docket: PPI report and weekly jobless claims
- Initial jobless claims, week ending Dec. 7 (224,000 prior); Producer Price Index, month-over-month, November (+0.3% expected, 0.2% previously); PPI, year-over-year, November (+2.4% prior)
Q4/24: December = 6 negative and 2 positive closes
- November 10 negative and 9 positive closes
- October: 8 positive and 15 negative closes
Companies in my headlights – It’s your decision; I provide ideas and context
I post about “indication intelligence” looking toward investment conferences … to assist investors with insight into sector vulnerabilities and strengths.
A dictionary definition of “indicate” refers to something less than a certainty; an indication could be a signal of being oversold or overbought, a recommendation, or grounds for inferring or a basis for believing.
Sell into Strength:
Wednesday, Tuesday, Monday, Friday and last Thursday’s closing “numbers” with aftermarket/pre-market dollar ($) and cent ($0.00) value and percentage (%)
Beam Therapeutics (BEAM) closed down -$1.30 after Tuesday’s +$2.69, Monday’s +$0.81, Friday’s +$1.39 and last Thursday’s -$0.70 with a neutral $0.00 pre-open.
Negative Indications:
Wednesday, Tuesday, Monday, Friday and last Thursday’s closing “numbers” with aftermarket/pre-market dollar ($) and cent ($0.00) value and percentage (%)
CRISPR Therapeutics (CRSP) closed -$0.90 after Tuesday’s -$1.16 after Monday’s -$2.49 with a negative -$0.17 or -0.36% pre-market
uniQure NV (QURE) closed up +$0.35 after Tuesday’s +$8.01 and Monday’s -$0.15 with a negative -$0.28 or -1.79% pre-market
Vericel (VCEL) closed up +$0.36 after Tuesday’s +$1.20 with a negative -$0.12 or -0.21% pre-market
Verve Therapeutics (VERV) closed down-$0.42 after Tuesday’s -$0.47 and Monday’s +$0.72 with a neutral pre-market
Positive indications:
Wednesday, Tuesday, Monday, Friday and last Thursday’s closing “numbers” with aftermarket/pre-market dollar ($) and cent ($0.00) value and percentage (%)
Alnylam Pharmaceuticals (ALNY0 closed up +$0.24 after Tuesday’s -$1.98 and Monday’s -$0.37 with a positive +$0.17 or +0.07% pre-market
The BOTTOM LINE: We have been subject to momentum reversals …
As I am STILL suspicious of the sector’s “froth” heading into this week as it runs while trend-chasing traders will turn-on the sector’s upside and sell.
There are clear winners with mostly losers in December …
Think about it; the biggest problem the cell and gene therapy sector has … 99% of them have no earnings! If rates are higher for longer, that means that sector companies will continue to struggle or be unable to raise capital and therefore be subject to debt servicing firms!
I seem to be asking a question followed by a question …
- Do we need to brace ourself for more economics and their down trending affect?
- Is this market STILL “bubblicious” my concerns are macroeconomic and valuation
Welcome to my world of defining the “grey’ in our universe!
- The sector is what it is, until it isn’t and even then, it doesn’t seem to be… as NOT much changes as the sector’s share pricing rides the waves of volatility, algorithms, electronic trading and short covering.
- I am more frequently right than consequentially wrong; if I wanted to be liked, I wouldn’t have been an analyst/journalist.
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. All investments are subject to risks. Investors should consider investment objectives.
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. 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.
Henry McCusker, the editor and publisher of RegMed Investors could hold or have positions securities referred to in this publication and he will NOTIFY investors of holdings.
