September 18, 2024 4:42pm

The cell and gene therapy sector wavered downward after Jerome spoke

Fed trimmed interest rates by 50 basis points, marking its first cut in 4 years bringing the target fed funds rate to a range of 4.75% to 5.00%

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 DOWN -103.08 points or -0.25%, the S&P closed DOWN -16.32 points or -0.29% while the Nasdaq closed DOWN -54.76 points or -0.31%

  • Indexes closed lower Wednesday in a volatile session as the Federal Reserve lowered interest rates in a half-point percentage move.
  • Many investors are betting that the Fed will be able to stave off a recession as it eases monetary policy from current levels.

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 …

  • Equities surged, purged cutting gains in volatile trading to close positive  
  • But indexes rolled over despite Powell’s comments. Part of the decline may be due to the sizable rally into Wednesday’s much-anticipated cut. The S&P 500 is up more than 18% on the year and 2% in the last 1 month alone

Wednesday’s advance/decline line at the open was positive with 21 incliners, 9 decliners and 5 flats; crashing at 1;15 P.M. with 10 incliners, 23 decliners and 2 flats ending with a negative close at the close of 13 incliner, 20 decliners and 2 flats

Metrics:  Wednesday, the IBB was down -0.21% and the XBI was down -0.14% while the VIX was up +0.44  points or up +2.50% at 18.05

 

RegMed Investors’ (RMi) pre-open: “Jerome pontificates at 2 p.m. ET. Whether the Fed cuts rates by 25 or 50 basis points, what matters is how markets respond. That may not be clear right away. Financial markets are likely to whipsaw this afternoon after the Fed rate cut, "dot plot" and Jerome's comments. The volatility could continue on Thursday or even Friday, as investors continue to chew over the implications. That makes it difficult to make bold moves right after a Fed meeting. But if market reaction appears favorable, investors can take advantage of more stocks flashing buy signals. <IBD>… https://www.regmedinvestors.com/articles/13621   

 

Ebb and flow of MY covered sector cell and gene therapy session daily “endings”:  Q3/24

  • September – 5 positive and 7 negative closes
  • August: 1 neutral, 10 positive and 11 negative closes
  • July: 1 market holiday. 1 day off, 6 negative, 1 neutral and 12 positive closes

 

Wednesday’s Closing Down (10 of 20):

  • Alnylam Pharmaceuticals (ALNY -$1.31 after Tuesday’s +$3.03 after Monday’s +$5.10),
  • Ultragenyx Pharmaceuticals (RARE -$0.79 after Tuesday’s -$1.01 after Monday’s +$0.62),
  • Regenxbio (RGNX -$0.42 after Tuesday’s +$0.24),
  • Adverum Biotechnologies (ADVM -$0.31),
  • CRISPR Therapeutics (CRSP -$0.28 after Tuesday’s +$1.67 after Monday’s -$1.20),
  • Solid Biosciences (SLDB -$0.24 after Tuesday’s -$0.15 after Monday’s -$0.40),
  • Agenus (AGEN -$0.13),
  • Fate Therapeutics (FATE -$0.12),
  • Beam Therapeutics (BEAM +$0.07 after Tuesday’s -$0.04 after Monday’s -$0.68),

Flat (2):

  • Bellicum Pharmaceuticals (BLCM)
  • Homology Medicine (FIXX)

Wednesday’s Closing Up (10 of 13):

  • Blueprint Medicine (BPMC +$2.82 after Tuesday’s +$0.47 after Monday’s -$2.60),
  • Vericel (VCEL +$2.03 after Tuesday’s -$0.29 after Monday’s -$1.15),
  • Ionis Pharmaceuticals (IONS +$0.85 after Tuesday’s +$0.83 after Monday’s -$1.49),
  • LENZ Therapeutics (LENZ +$0.40 after Tuesday’s +$0.19 after Monday’s -$0.95),
  • BioLife Solutions (BLFS +$0.27 after Tuesday’s -$2.01 after Monday’s +$0.34),
  • uniQure NV (QURE +$0.14 after Tuesday’s +$0.22),
  • Verve Therapeutics (VERV +$0.12 after Tuesday’s -$0.03),
  • Mesoblast (MESO +$0.09 after Tuesday’s -$0.05),
  • Sage Therapeutics (SAGE +$0.07 after Tuesday’s -$0.05 after Monday’s -$0.26),

 

The BOTTOM LINE: An upbeat Powell wasn't enough with slip as sentiment showed its underwear?

For the week:

  • The S&P 500 is down 7.76 points, or 0.1%.
  • The Dow is up 109.32 points, or 0.3%.
  • The Nasdaq is down 110.68 points, or 0.6%.
  • The Russell 2000 is up 23.85 points, or 1.1%.

 

Reiterating, “The Fed lowered interest rates 2 more times this year after it slashed its benchmark federal funds rate by 50 basis points to a range of 4.75%-5.0% at the conclusion of its meeting.”

  • “Powell assuaged concerns that the aggressive cut stemmed from a troubled economic outlook; rather, he hinted it was because the upside risks to inflation have come down significantly. Though the central bank chief also cautioned investors the half-point cut didn’t necessarily mean the central bank would keep going as aggressively, instead saying they would proceed carefully.” <CNBC>

I would also think … cell and gene therapy sector companies could have an ESIER time in seeking FINANCE!

  • The PROBLEM going forward is Q3’s end readying for earnings releases.

 

The 3rd week of September’s as Wednesday popped the cork to empty the sector after Tuesday ascended helped by “uncle algo and his electronic trading dwarfs” after Monday, bolted to the downside …

  • The 2nd week’s Friday rapid positive ascension followed Thursday’s positive after Wednesday’s sector gained altitude post Tuesday’s negative drop in the puddle after Monday’s closed positive
  • Following the 1st short week of September ending with 4 negative closes - a bust!

 

Are we prepared for … a BIGGER dive in share pricing?

 

The top three (3) performing in the session: 

  • Wednesday: Blueprint Medicine (BPMC), Vericel (VCEL) and Ionis Pharmaceuticals (IONS)
  • Tuesday: Alnylam Pharmaceuticals (ALNY), CRISPR Therapeutics (CRSP) and Intellia therapeutics (NTLA)
  • Monday: Alnylam Pharmaceuticals (ALNY), Ultragenyx Pharmaceuticals (RARE) and AxoGen (AXGN)

The worst three (3) in the session: 

  • Wednesday: Alnylam Pharmaceuticals (ALNY), Ultragenyx Pharmaceuticals (RARE), Regenxbio (RGNX)
  • Tuesday: BioLife Solutions (BLFS), Ultragenyx Pharmaceuticals (RARE) and Vericel (VCEL)
  • Monday: Blueprint Medicine (BPMC), Vericel (VCEL) and Ionis Pharmaceuticals (IONS)

 

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.