July 8, 2024 4:47pm

Like, inflation data vulnerabilities and upcoming Q2 LPS (loss-per-share) sector earnings. For the record. NO AI here – HUMINT and SIGMIT only!

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.”

 

Monday

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.

 

Follow-on Comparisons: Friday

Friday: The Dow closed UP +67.87 points or +0.17%, the S&P closed UP +30.17 points or +0.54% while the Nasdaq closed UP +164.46 points or +0.90%

Friday’s advance/decline line at the open was negative with 12 incliner,19 decliners and 4 flats; ending with a neutral close of 16 incliners, 16 decliners and 3 flats

•              the IBB was up +0.82% and the XBI was up +0.92%

•              the VIX was up +0.15 point or +1.22% at 12.41

Economic Data Docket: Labor data released reflected a 206,000 increase in nonfarm payroll adds in June and a slight uptick in the unemployment rate, which rose to 4.1%. Economists expected the jobless rate to remain steady at 4%.

 

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 and Nasdaq closed at record highs Monday as investors await key inflation data to provide further clues about whether this year’s market rally is sustainable

 

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 1 positive (2nd Monday 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

 

Monday’s Closing Down (8 of 8):

  • Regenxbio (RGNX -$0.27),
  • uniQure NV (QURE -$0.06 after Friday’s -$0.07),
  • Fate Therapeutics (FATE -$0.05),
  • Caribou Biosciences (CRBU -$0.04 after Friday’s $0.00),
  • Cellectis SA (CLLS -$0.01),
  • Mesoblast (MESO -$0.01 after Friday’s +$0.93),
  • Brainstorm Cell Therapeutics (BCLI -$0.0087),
  • Sangamo Therapeutics (SGMO -$0.0041),

Flat (3):

  • Bellicum Pharmaceuticals (BLCM) – dropped)
  • Harvard Apparatus RT (OTCQB: HRGN $0.00 after Friday’s+$0.20 with 300 shares traded),
  • Homology Medicine (FIXX) – under $1.00

Monday’s Closing Up (10 of 24):

  • Blueprint Medicine (BPMC +$4.62 after Friday’s +$2.67),
  • Alnylam Pharmaceuticals (ALNY +$4.08 after Friday’s +$2.38
  • Ionis Pharmaceuticals (IONS +$1.15 after Friday’s +$0.49),
  • Solid Biosciences (SLDB +$0.88 after Friday’s -$0.10),
  • Beam Therapeutics (BEAM +$0.77 after Friday’s -$0.40),
  • Ultragenyx Pharmaceuticals (RARE +$0.61 after Friday’s +$0.67),
  • BioLife Solutions (BLFS +$0.46),
  • Agenus (AGEN +$0.43 after Friday’s +$0.60),
  • Verve Therapeutics (VERV +$0.42),
  • Lenz Therapeutics (LENZ +$0.33 after Friday’s +$0.39),

 

 

The BOTTOM LINE:  A weak start to July may NOT ensure a gain for the month.

Good session after bad sessions, holidays and days off – however, the real issue is … will breadth continue and improve in the July -August equity market?

Q3 and July to date:

  • 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

 

Meanwhile, the small-cap Russell 2000 rallied 1%.  Volume was higher on the Nasdaq compared with the same time Friday. Breadth was stronger today, with advancers over.

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 is scheduled to appear before Congress Tuesday and Wednesday. Investors will be looking for further clues on when the Fed plans to cut interest rates.

  • Economic data from the Bureau of Labor Statistics' June Consumer Price Index comes out Thursday. Economists see CPI slowing to 3.1% year-over-year growth, while core CPI is expected to inch up to an annualized increase of 3.5%, according to Econoday. The June producer price index is due Friday, with the annual reading projected to inch up to 2.3% from the 2.2% level in May. <IBD>

 

“Stuff” happens: supports the possibilities of the biotech/cell and gene therapy sector …

  • Morphic Holding (MORF) gapped up around 75% in huge volume on news that Eli Lilly (LLY) will acquire the biotech for $57 a share in a deal totaling nearly $3.2 billion. Leaderboard name Eli Lilly rose 1.3% to a record high on the stock market today.
  • Ideaya Biosciences (IDYA) surged 15.15% after the precision medicine oncology company announced it had received positive results from the P2 trial of its cancer treatment. The monotherapy expansion dose is being developed to treat patients with urothelial and non-small cell lung cancers.

 

The top three (3) performing in the session:   

  • Monday: Blueprint Medicine (BPMC), Alnylam Pharmaceuticals ALNY) and Ionis pharmaceuticals (IONS)
  • Friday: Blueprint Medicine (BPMC), Alnylam Pharmaceuticals ALNY) and Vericel (VCEL)

The worst three (3) in the session:   

  • Monday: Regenxbio (RGNX), uniQure NV (QURE) and Fate Therapeutics (FATE)
  • Friday: CRISPR Therapeutics (CRSP), Beam Therapeutics (BEAM) and Generation Bio (GBIO)

 

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.