June 10, 2024 5:07pm

The real question is what expectations will be fulfilled when share pricings are nursed back post depreciation as investors brace for a Fed policy decision and key inflation data this week

I say today what others won't, so you can do what others can't!

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.”

 

Monday: The Dow closed UP +69.05 points or +0.18%, the S&P closed UP +13.80 points or +0.26% while the Nasdaq closed UP +59.40 points or +0.35%

 

RegMed Investors’ (RMi) pre-open post: NONE – sick call

 

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 climbed even as investors looked ahead to the Fed’s interest rate decision.

Economic Data Docket: The central bank district’s Survey of Consumer Expectations showed the one-year outlook for inflation edging lower to 3.2%, down 0.1 percentage point from April. At the three-year horizon, it was unchanged at 2.8%, while the five-year outlook moved up to 3%, a 0.2 percentage point rise.

  • The Fed’s latest rate decision and May’s consumer price index that are expected Wednesday could prove key tests for markets, especially after Friday’s strong jobs report continued to suggest the central bank could hold off on lowering rates.

 

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

Monday’s advance/decline line at the open was negative with 16 incliner, 6 decliners and 3 flats; ending with a positive close of 24 incliners, 7 decliners and 4 flats

  • Monday, the IBB was up +0.16% and the XBI was up +0.66%
  • Monday, the VIX was up +0.52 point or +4.26% at 12.74

Friday’s advance/decline line at the open was negative with 3 incliner, 28 decliners and 4 flats; ending with a negative close of 7 incliners, 24 decliners and 4 flats

  • Friday, the IBB was down -0.64% and the SPDR S&P Biotech ETF (XBI) was down -1.57%
  • Friday, The VIX down -0.33 point or -2.62% at 12.25

 

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

  • June: 3 positive and 3 negative closes

 

Monday’s Closing Down (7 of 7):

  • Vericel (VCEL -$0.85 after Friday’s -$1.43),
  • Regenxbio (RGNX -$0.37 after Friday’s +$0.32
  • Generation Bio (GBIO -$0.27),
  • Solid Biosciences (SLDB -$0.24 after Friday’s +$0.34),
  • Compass Therapeutics (CMPX -$0.10),
  • Caribou Biosciences (CRBU -$0.07),
  • MiMedx (MDXG -$0.04),

Flat (4):

  • Bellicum Pharmaceuticals (BLCM) – dropped)
  • Cellectis SA (CLLS)
  • Harvard Apparatus RT (OTCQB: HRGN – its 14th flat sessions)
  • Homology Medicine (FIXX) – under $1.00

Monday’s Closing Up (10 of 24):

  • Lenz Therapeutics (LENZ +$2.21 after Friday’s +$0.54),
  • CRISPR Therapeutics (CRSP +$2.12 after Friday’s -$2.09),
  • BioLife Solutions (BLFS +$1.22 after Friday’s -$0.46),
  • Beam Therapeutics (BEAM +$1.19 after Friday’s -$0.86
  • Prime Medicine (PRME +$1.11 after Friday’s -$0.32
  • Ionis Pharmaceuticals (IONS +$0.84 after Friday’s -$0.92),
  • Alnylam Pharmaceuticals (ALNY +$0.69 after Friday’s +$3.48)
  • Ultragenyx Pharmaceuticals (RARE +$0.57 after Friday’s -$0.37
  • Agenus (AGEN +$0.57 after Friday’s +$0.04),
  • Intellia Therapeutics (NTLA +$0.55 after Friday’s -$0.22),

 

The BOTTOM LINE: New week … raises the question of whether the sector is getting frothy yet again.

Last week: the cell and gene therapy sector, ended Friday and Thursday ended in the toilet after Wednesday’s positive close Tuesday negative close following Monday’s positive close.

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

The top three (3) performing in the session:  

  • Monday: Lenz Therapeutics (LENZ), CRISPR Therapeutics (CRSP) and BioLife Solutions (BLFS)

The worst three (3) in the session:  

  • Monday: Vericel (VCEL), Regenxbio (RGNX) and Solid Biosciences (SLDB)

 

Sam Stovall, chief investment strategist at CFRA, said inflation is still lingering at elevated levels, causing lasting concerns among investors.

  • “For me, the big worry is that the Fed has not gone far enough for long enough,” he told CNBC in a recent interview.
  • “I think that at least is going to keep us sort of range bound, and probably stop the markets going much further in the near term.”

In fact, in the next few weeks, Stovall sees the market pulling back at least 5% in a mild correction.

 

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.