December 31, 2024 4:43pm

Chalk it up, the session, week, month and year 2025 are over

The market closed Wednesday in observance of New Year’s Day.

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!  

On point, short on words, long on facts and being judicious!

Never above you, never below you, always beside you!

 

Tuesday: The Dow closed DOWN -29.51 points or -0.07%, the S&P closed DOWN -25.31 points or -0.43% while the Nasdaq closed DOWN -175.89 points or -0.90%

  • Indexes closed down on final day of 2024

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

  • Despite the strong year-to-date performance, the “Street” is entering the final day of 2024 on sour note. December has been a weak stretch for equities as investors took profits in some of 2024′s biggest winners and fears mount over rising rates into year-end.

Tuesday’s advance/decline line at the open was positive with 20 incliners, 11 declined and 3 flats; ending with a barely positive close at the close of 16 incliner, 15 decliners and 4 flat

  • Sentiment was traded into by uncle algo and his electronic dwarfs” and conviction have been ripped from our vocabulary

Metrics:  Tuesday, the IBB was up +0.54%, the XBI was up +0.17 % while the VIX was down -0.05 points or -0.29% at 17.35

 

As compared to:

Monday: The Dow closed DOWN -418.48 points or -0.97%, the S&P closed DOWN -63.90 points or -1.07% while the Nasdaq closed DOWN -235.25 points or -1.19%

  • Indexes declined on Monday, in one of the last few trading sessions of 2024, potentially putting a sour ending on a banner year for investors.
  • The market closed Wednesday in observance of New Year’s Day.

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

  • The Chicago purchasing managers index for December did miss expectations on Monday, coming in at 36.9. Economists surveyed were expecting a reading of 42.2.

Monday’s advance/decline line at the open was negative with 3 incliners, 30 declined and 2 flats; ending with a negative close at the close of 7 incliner, 27 decliners and 1 flat

  • Sentiment and conviction have been ripped from our vocabulary

Metrics:  Monday, the IBB was down -1.85%, the XBI was down -1.46% while the VIX was up +1.45 points or +9.09% at 17.40

 

Q4/24 – 1 holiday, 6 positive and 15 negative closes

  • November – 1 holiday, 10 negative and 10 positive closes              
  • October: 8 positive and 15 negative sessions

 

Tuesday’s Closing Down (10 of 15): -$ after Monday’s

  • Sangamo Therapeutics (SGMO -$1.32),
  • Mesoblast (MESO -$1.24 after Monday’s +$3.51),
  • Lenz Therapeutics (LENZ -$1.20 after Monday’s -$1.25),
  • Alnylam Pharmaceuticals (ALNY -$0.70 after Monday’s -$1.96),
  • Beam Therapeutics (BEAM -$0.47 after Monday’s -$1.32),
  • Vericel (VCEL -$0.39 after Monday’s -$2.03),
  • BioLife Solutions (BLFS -$0.31 after Monday’s -$0.44),
  • Ultragenyx Pharmaceuticals (RARE -$0.20 after Monday’s -$1.15),
  • Brainstorm Cell Therapeutics (BCLI -$0.10),
  • Solid Biosciences (SLDB -$0.07),

Flat (2)

  • Harvard Apparatus RT (OTCQB: HRGN $0.00 after Monday’s +$0.27)
  • Homology Medicine (FIXX)

Tuesday’s Closing Up (10 of 16):

  • Moderna (MRNA +$2.20 after Monday’s -$0.74),
  • CRISPR Therapeutics (CRSP +$0.71 after Monday’s -$1.37),
  • Regenxbio (RGNX +$0.50 after Monday’s  -$0.46),
  • bluebird bio (BLUE +$0.48),
  • uniQure NV (QURE +$0.44),
  • Blueprint Medicine (BPMC +$0.40 after Monday’s -$3.58),
  • Intellia Therapeutics (NTLA +$0.26),
  • Precigen (PGEN +$0.18 after Monday’s +$0.20),
  • MiMedx (MDXG +$0.18 after Monday’s +$0.06),
  • Prime Medicine (PRME +$0.14)

 

The BOTTOM LINE: Market breadth seemed to have returned in trading Tuesday, as momentum caused a positive close.

The New Year is due and a whole new group of expectations.

Worries have mounted that the market may be losing momentum, with what appears to be year-end profit-taking after the major averages notched losing sessions Friday.

  • Trading in the bond market could also be contributing to the pullback in tech stocks. The 10-year Treasury yield traded above 4.6% last week, though it retreated Monday. <CNBC>

A quote to ponder, “Markets have largely digested the year's remaining key economic data points, and investors are now turning their attention to two big themes for the coming year: the Fed's path for interest rates and the implications of Trump's ascent back to the White House.”

The cell and gene therapy sector stocks is about to end the 5th week of December, the final month of 2024 with …

  • The last sessions of December with Monday closing negative … as Tuesday closed barely positive!
  • Monday of the second to last week of December closed negative … Tuesday closed positive, Wednesday was a holiday while Thursday and Friday closed negative
  • Last Monday’s positive close with a Tuesday barely positive close followed by a Wednesday’s deeply negative with yet another Thursday negative close … followed by a positive close
  • The previous week, ended with 5 negative closes
  • December’s 1st week ‘s Monday positive close was followed by negative closes on Thursday and Wednesday, Tuesday’s and then Friday’s positive close

Come January be selective in BUYs, let go of SELLs … share pricing “blossoms” are coming

As I have written “Many sector companies are engaged in cost realignment programs, which won’t be realized consequences over the next few Qs where the operating expense levels; spending on SG&A (selling, informational, and administrative) and R&D (research and development) facilitate the need to extend runways and enable expectation of clinical innovations.”

  • "I think the market's going to come back to earnings, the first couple of months of 2025, and 1st H will be a shifting cell and gene therapy sector due to earnings releases... I still believe stocks will swing upward pre and them more post releases
  • They had better, capital markets have been floundering on follow-on offerings.

 

Where the major averages stand heading into the final trading day of 2024 <Samantha Subin, Chris Hayes; CNBC>

Dow:

  • Down 5.2% this month for its worst monthly performance since September 2022
  • Up 0.6% in the fourth quarter
  • Up about 13% this year

S&P %:

  • UP 2.1% for its worst month since April
  • Up 2.5% during the fourth quarter and fifth consecutive winning quarter for the first time since 2021
  • Up 23.8% on the year for a consecutive yearly gain of 20% or more

Nasdaq Composite:

  • Up 1.4% this month
  • Headed for 7.1% Q4  gain and 5th straight winning Q for the 1st time since 2021
  • Up 29.8% on the year

 

Why do I keep repeating, so investors can make the connection …

The top three (3) performing in the session:    

  • Tuesday: Moderna (MRNA), CRISPR Therapeutics (CRSP) and Regenxbio (RGNX)
  • Monday: Mesoblast (MESO), Cellectis SDA (CLLS) and Harvard Apparatus RT (OTCQB: HRGN)

The worst three (3) in the session: 

  • Tuesday: Sangamo Therapeutics (SGMO, Mesoblast (MESO) and Lenz Therapeutics (LENZ)
  • Monday: Blueprint Medicine (BPMC), Alnylam Pharmaceuticals (ALNY) and Vericel (VCEL)

 

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.