June 3, 2024 4:30pm

Indexes were mixed on Monday to kick off a volatile first trading day of June as the May jobs report and other labor prints later this week will test investor sentiment on the Fed's path

Economic data releases usually send equities seesawing back and forth

Today is another example of the sector being what it should be, until it isn’t and even then, it doesn’t seem to be … now it’s about taking a deep breath and holding it

Pre-open Indications: 2 Hits and 3 Miss

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.”

I answer or qualify the sector’s equity’s share pricing mobility; with an emphasis on which company is gaining or losing stride in your portfolio for the short and near-term

 

Monday: The Dow closed DOWN -115.29 points or -0.30%, the S&P closed UP +5.89 points or +0.11% while the Nasdaq closed UP +93.65 points or +0.56%

 

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 were mixed on Monday after weak U.S. manufacturing data raised concerns about the strength of the economy.

Economic Data Docket: The U.S. manufacturing sector showed a greater level of contraction than expected in May, according to an Institute for Supply Management report. The ISM manufacturing index was at 48.7 on the month, representing the share of businesses reporting expansion. A number below 50 indicates contraction. Within the ISM business survey, the prices index fell 3.9 points to 57, while the employment index rose 2.5 points to 51.1, breaking into expansion territory. <CNBC>

 

Advance/Decline (A/D) Line:

  • Monday’s advance/decline line at the open was positive with 29 incliner, 2 decliners and 4 flats; ending with a positive close of 18 incliners, 14 decliners and 3 flats

 

Pre-open Indications: 2 Hits < CRISPR Therapeutics (CRSP +$3.36), uniQure NV (QURE +$0.38)> and 3 Miss < Agenus (AGEN -$1.51), Ionis Pharmaceuticals (IONS +$1.02), Adverum Biotechnologies (ADVM -$0.09), Blueprint Medicine (BPMC -$1.89)>

 

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

  • June: 1 positive close
  • May: 1 holiday, 11 positive and 11 negative closes
  • April: 16 negative and 6 positive closes

 

Key Metrics:

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Monday, the IBB was up +1.21% and the XBI was up +2.57%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was up +0.20 point or +1.55% at 13.12

 

Monday’s Closing Down (10 of 14):

  • Vericel (VCEL -$1.35 after Friday’s -$0.48
  • Caribou Biosciences (CRBU -$-0.73),
  • Blueprint Medicine (BPMC -$0.72 after Friday’s -$0.80
  • BioLife Solutions (BLFS -$0.22 after Friday’s -$0.27),
  • Lenz Therapeutics (LENZ -$0.21 after Friday’s -$0.22),
  • Adverum Biotechnologies (ADVM -$0.17 after Friday’s -$0.11
  • Generation Bio (GBIO -$0.12),
  • Cellectis SA (CLLS -$0.06),
  • Mesoblast MESO -$0.06),
  • MiMedx (MDXG -$0.05),

Flat (3):

  • Bellicum Pharmaceuticals (BLCM) – dropped)
  • Harvard Apparatus RT (OTCQB: HRGN)
  • Homology Medicine (FIXX) – under $1.00

Monday’s Closing Up (10 of 18):

  • CRISPR Therapeutics (CRSP +$3.41 after Friday’s -$0.32),
  • Intellia Therapeutics (NTLA +$2.14 after Friday’s -$0.72),
  • Alnylam Pharmaceuticals (ALNY +$2.02 after Friday’s -$1.60),
  • Agenus (AGEN +$1.28 after Friday’s +$0.58),
  • Ionis Pharmaceuticals (IONS +$1.20 after Friday’s +$1.02),
  • Ultragenyx Pharmaceuticals (RARE +$0.99 after Friday’s -$1.49),
  • Beam Therapeutics (BEAM +$0.56 after Friday’s -$0.27
  • Regenxbio (RGNX +$0.41),
  • uniQure NV (QURE +$0.38 after Friday’s +$0.27),
  • Voyager Therapeutics (VYGR +$0.25 after Friday’s +$0.26),

 

Q2/24 – June

  • (6/3) Monday closed positive with 18 incliners, 14 decliners and 3 flats

 

The BOTTOM LINE:  a slump with a positive close in a volatile first trading day of June.

A weaker-than-expected reading on the manufacturing sector pushed the major averages lower as investors debate the future path of Fed rate cuts. Bond yields also moved to the downside, with the 10-year Treasury yield (^TNX) falling about 10 basis points to trade near 4.41%.

 

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

 

The top three (3) performing in the session:  

  • Monday: CRISPR Therapeutics (CRSP), Intellia Therapeutics (NTLA) and Alnylam Pharmaceuticals (ALNY),

The worst three (3) in the session:

  • Monday: Blueprint Medicine (BLMC), Vericel (VCEL) and Caribou Biosciences (CRBU)

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 its 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.