August 21, 2024 5:17pm

After “uncle algo and his electronic trading dwarfs” popped-in for a big dinner of share pricing

From a.m., post NOTICE: The Labor Department DISAPPEARED 818,000 jobs originally REPORTED in the 12-month period through March 2024. Has the current administration been “polluting” the Labor Department reporting – a downward revision NOT seen in 15 years? <read more below>

Pre-open Indication Results: 4 Hits and 1 Miss

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.”

 

Wednesday: The Dow closed UP +55.52 points or +0.14%, the S&P closed UP +23.73 points or +0.42% while the Nasdaq closed UP +102.05 points or +0.57%

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 …

  • Wednesday, indexes ticked higher as traders looked ahead to minutes from the Federal Reserve’s latest policy meeting — seeking further insight into the prospect of an interest rate cut.
  • Stocks are coming off a losing session, with both the S&P 500 and Nasdaq Composite snapping their longest winning streaks since late 2023. That was just the latest action in a choppy month for equities. <CNBC>

Wednesday’s advance/decline line at the open was positive with 22 incliners, 9 declined and 4 flats; ending with a positive close of 29 incliner, 3 decliners and 3 flats

  • the IBB was up +0.52% and the XBI was up +0.98%
  • the VIX was up +1.50 point or +10.14% at 16.30

Economic Data Docket: As part of its preliminary annual benchmark revisions to the nonfarm payroll numbers, the Bureau of Labor Statistics said the actual job growth was nearly 30% less than the initially reported 2.9 million from April 2023 through March of the following year.

  • At the sector level, the biggest downward revision came in professional and business services, where job growth was 358,000 less. Other areas revised lower included leisure and hospitality (-150,000), manufacturing (-115,000) and trade, transportation and utilities (-104,000).
  • Within the trade category, retail trade numbers were cut by 129,000.
  • A few sectors saw upward revisions, including private education and health services (87,000), transportation and warehousing (56,400) and other services (21,000).
  • Government jobs were little changed after the revisions, picking up just 1,000.
  • A separate indicator showed the manufacturing sector contracted more than expected.
  • Things got worse when the nonfarm payrolls report for July showed job creation of just 114,000 and another tick up in the unemployment rate to 4.3%. <CNBC>

Fed officials at their July meeting moved closer to a long-awaited interest rate reduction, but stopped short while indicating that a September cut had grown increasingly probable, minutes released Wednesday showed.

 

As compared to …

Tuesday: The Dow closed DOWN -61.56 points or -0.15%, the S&P closed DOWN -11.13 points or -0.20% while the Nasdaq closed DOWN -59.83 points or -0.33%

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 …

  • Tuesday, indexes ticked lower on Tuesday as investors struggled to continue building on the market’s month.
  • Despite Tuesday’s moves, the major averages have bounced back and market volatility has tumbled since the start of the month. The CBOE Volatility Index (VIX)
  •  is now under 16 after topping 65 on Aug. 5. That was also the day that the S&P 500 suffered its worst session since 2022 amid a global market sell-off sparked by a weak July jobs report and an interest rate hike in Japan. <CNBC>

Tuesday’s advance/decline line at the open was negative with 15 incliners, 17 declined and 3 flats; ending with a negative close of 8 incliner, 24 decliners and 3 flats

  • the IBB was down -0.28% and the XBI was down -0.02%
  • the VIX was up +1.22 point or +8.33% at 15.87

 

Monday: The Dow closed UP +236.77 points or +0.58%, the S&P closed UP +54 points or +0.97% while the Nasdaq closed UP +245.05 points or +1.39%

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 traded higher Monday as markets look toward a possible signal this week from Fed Chair Powell about interest rates.

Monday’s advance/decline line at the open was positive with 25 incliners, 7 declined and 3 flats; ending with a positive close of 27 incliner, 6 decliners and 2 flats

  • the IBB was up +2.04% and the XBI was up +3.15%
  • the VIX was down -0.17 point or -1.15% at 14.63

Economic Data Docket: The economic and market spotlight this week will shift to Jackson Hole, Wyo., for the Kansas City Fed's annual economic symposium, which runs Thursday through Saturday.

 

Pre-open Indication Results: 4 Hits < Alnylam Pharmaceuticals (ALNY -$1.69), AxoGen (AXGN +$0.60), CRISPR Therapeutics (CRSP +$0.92), Regenxbio (RGNX +$0.34)> and 1 Miss < Ultragenyx Pharmaceuticals (RARE +$0.25)>

 

RegMed Investors (RMI) Research Note: Harvard Apparatus RT (OTCQB: HRGN) Chronicles: Reports Q2/24 results … https://www.regmedinvestors.com/articles/13580

  • After a Research Note Monday, OTCQB: HRGN closed down -$0.05 with 50 shares traded to $2.25 and traded flat on Tuesday and Wednesday.

 

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

Q3/24

  • August: 1 neutral, 6 positive and 8 negative closes
  • July: 1 market holiday. 1 day off, 6 negative, 1 neutral and 12 positive closes

 

Wednesday’s Closing Down (3 of 3):

  • Alnylam Pharmaceuticals (ALNY -$1.59 after Tuesday’s +$6.28 and Monday’s +$6.24),
  • Voyager Therapeutics (VYGR -$0.08 after Tuesday’s +$0.29),
  • Lenz Therapeutics (LENZ -$0.03),

Flat (3):

  • Bellicum Pharmaceuticals (BLCM)
  • Harvard Apparatus RT (OTCQB: HRGN $0.00 after Monday’s -$0.05
  • Homology Medicine (FIXX)

Wednesday’s Closing Up (10 of 29):

  • Ultragenyx Pharmaceuticals (RARE +$4.04 after Tuesday’s -$0.77 after Monday’s +$0.73),
  • Blueprint Medicine (BPMC +$1.58 after Tuesday’s -$2.50 after Monday’s -$2.21),
  • Vericel (VCEL +$0.97),
  • Beam Therapeutics (BEAM +$0.96 after Tuesday’s -$0.47 after Monday’s +$0.57),
  • CRISPR Therapeutics (CRSP +$0.92 after Tuesday’s -$0.76 after Monday’s +$1.98),
  • Ionis Pharmaceuticals (IONS +$0.85 after Tuesday’s -$0.31 after Monday’s +$1.18),
  • Solid Biosciences (SLDB +$0.62 after Tuesday’s +$0.05),
  • AxoGen (AXGN +$0.60 after Tuesday’s +$0.06),
  • Intellia Therapeutics (NTLA +$0.43),
  • Regenxbio (RGNX +$0.34 after Tuesday’s -$0.61),

 

The BOTTOM LINE: Cell and gene therapy share pricing jumped on Wednesday after diving Tuesday after popping Monday after last week's gains, pain and a neutral share pricing as a measure of calm returns – hope springs eternal but, not a technical factor.

  • As “uncle algo and his electronic dwarfs” left last week’s Friday’s closing sector pricing neutral, pumped 2 sessions and dumped 2 sessions of the cell and gene therapy sector’s share pricing!
  • Last week slowed with the sector’s Friday neutral close after Thursday’s positive close following Wednesday’s negative close, Tuesday’s positive close and Monday’s negative close.
  • Following the previous week’s Friday’s decline and the previous Thursday’s incline after drooping on Wednesday following Tuesday’s pop and Monday’s decline in a new week …

 

The Russell 2000 outperformed, with the small-cap focused index climbing more than 1%.

  • Investors and traders anxiously await commentary from the Fed’s Powell; who is expected to deliver remarks Friday at the Jackson Hole Economic Symposium, where he could provide further clues into the Fed’s next rate decision at its September gathering.
  • investors will also keep a watchful eye on the Democratic National Convention, which kicks off on Monday and could bring more insight into what to expect from presidential nominee Kamala Harris.

 

Markets are fully pricing in a September cut, which would be the first since the emergency easing in the early days of the Covid crisis.

The up/downs in sessions could be a preview of the rest of the month, quarter and year …

  • Economic concerns, geopolitical conflict and the looming November elections could keep investors on edge in the coming months.

Reiterating, “There’s more room for “tactical downside in the weeks to come as we enter the gauntlet of the weakest two months and only consecutive losing months for equities, with markets at all-time highs.”

 

Q3 and August’s 3rd full week:

  • Wednesday ended with a positive close of 29 incliner, 3 decliners and 3 flats
  • Tuesday ended with a negative close of 8 incliner, 24 decliners and 3 flats
  • (8/19) Monday ended with a positive close of 27 incliner, 6 decliners and 2 flats

 

Electronic trading pops and flops the cell and gene therapy sector

  • There is evidence of a slower … slowdown coming (it’s the contrarian in me) and it's going to become even more thin as we go forward into 2H/24.

 

The top three (3) performing in the session: 

  • Wednesday: Ultragenyx Pharmaceuticals (RARE), Blueprint Medicine (BPMC) and Vericel (VCEL)
  • Tuesday: Alnylam Pharmaceuticals (ALNY), Voyager therapeutics (VYGR) and uniQure NV (QURE)
  • Monday: Alnylam Pharmaceuticals (ALNY), Blueprint Medicine (BPMC) and CRISPR Therapeutics (CRSP)

The worst three (3) in the session: 

  • Wednesday; Alnylam Pharmaceuticals (ALNY), Lenz Therapeutics (LENZ) and Voyager Therapeutics (VYGR)
  • Tuesday: Blueprint Medicine (BPMC), BioLife Solutions (BLFS) and Ultragenyx Pharmaceuticals (RARE)
  • Monday: Agenus (AGEN), Harvard Apparatus RT (OTCQB: HRGN) and Lenz Therapeutics (LENZ)

 

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.