September 11, 2024 8:00am
Consumer prices rose 0.2% in August with core inflation higher than expected: Prices increased as expected in August while the annual inflation rate declined to its lowest level since 2/21, that sets the stage for a Fed interest rate cut in a week.
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!
Never leave an investor uninformed
Investors should remain neutral hanging-back watching for follow-on BUY opportunities
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: The pre-open Dow futures are DOWN -0.72% or (-293 points), the S&P futures are DOWN -0.42% or (-23 points) and the Nasdaq futures are DOWN -0.44% or (-83 points)
· U.S. stock futures slipped Wednesday,
· European stocks were higher,
· Asia-Pacific markets were lower.
Henry’omics: We need to more than consider the economic environment to comprehend the micro re “our” universe of cell and gene therapy companies …
Tuesday: The Dow closed DOWN -92.63 points or -0.23%, the S&P closed UP +24.47 points or +0.45% while the Nasdaq closed UP +141.28 points or +0.84%
· Tuesday’s advance/decline line ended with a positive close at the close of 19 incliner, 14 decliners and 2 flats
Economic Data Docket: Consumer Price Index, month-over-month, August (+0.2% expected, +0.2% previously); Core CPI, month-over-month, August (+0.2% expected, +0.2% previously); CPI, year-over-year, August (+2.6% expected, +2.9% previously); Core CPI, year-over-year, August (+3.2% expected, +3.2% previously); Real average hourly earnings, year-over-year, August (+0.7% previously)
- On a "core" basis, which strips out the more volatile costs of food and gas, prices in August are expected to have risen 3.2% over last year, unchanged from July's increase. Economists also expect monthly core price increases to remain unchanged, estimating an uptick of 0.2%. <Bloomberg>
· U.S. mortgage rates fell for a 6th straight week to 6.29% from 6.43%.
Ionis Pharmaceuticals (IONS) prices a $500.3 M public offering … https://www.regmedinvestors.com/articles/13608
Tuesday’s RegMed Investors (RMi) Closing bell: “share pricing hop-scotch. The current state of the equity market is uncertain and investors should rejigger positions in their portfolios. Focus is now on a fresh consumer inflation print due Wednesday; followed by the read-out on pricing from the producer inflation report on Thursday, the last inflation inputs before the Fed's policy decision on Sept. 18.” … https://www.regmedinvestors.com/articles/13610
Q3/24:
· September – 2 positive and 4 negative close
· August – I neutral, 10 positive and 11 negative closes
· July: 1 market holiday. 1 day off, 6 negative, 1 neutral and 12 positive 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.
Yet again, I am passing on forecasting the daily indications as CPI data expectation in the aftermarket fluctuated while the pre-open waits for the all-clear alarm … it is still a mix of ups, downs and just unknowns.
The BOTTOM LINE: Dow, S&P and Nasdaq futures fell modestly early Wednesday, as Investors assess the debate between former President Trump and Vice President Harris, with the CPI inflation report due before the open.
Moving forward, I believe the cell and gene therapy sector equities could be a bit rocky.
· With every dramatic upside for the oversold … it will last a few sessions until trading subtracts the ascension.
Traders and investors are nervous about the coming week’s economic releases …
· Bracing for a busy week of inflation-related data releases. On Wednesday, the highly anticipated Consumer Price Index (CPI) report is due, followed by Initial Jobless Claims and Producer Price Index (PPI) data on Thursday.
Volatility is stalking the markets as investors waver between hopes for a hefty 0.5% rate cut from the Fed and worries about risks of recession.
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!”
· 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.
