November 1, 2023 7:59am

Coming, more of a period of sector rotation in the number’s ecosphere as indexes and the cell and gene therapy sector anticipate that earnings’ releases will signal an interrupt to appreciation in follow-through sessions and gearing-up for the Fed’s latest policy decision on interest rates

Earnings: Sangamo Therapeutics (SGMO) today, Alnylam Pharmaceuticals (ALNY), Ionis Pharmaceuticals (IONS), Ultragenyx Pharmaceuticals (RARE) - Thursday and Editas Medicine (EDIT) - Friday

Pre-Open Indications: 3 Positive and 2 Negative Indications

Never leave an investor uninformed!

Remember that overnight and pre-open actions in futures don't necessarily translate into actual trading in the coming day’s session. My interpretation of the morning’s numbers is written to be informative; it’s built on what could happen or materialize

 

News: 

CRISPR Therapeutics (CRSP) announced the completion of the FDA’s Cellular, Tissue, and Gene Therapies Advisory Committee meeting for exagamglogene autotemcel (exa-cel) for the treatment of SCD in people ages 12 and older with recurrent vaso-occlusive crises (VOCs). Exa-cel is the first potential therapy to emerge from a strategic partnership between CRISPR Therapeutics

Cellectis SA (Euronext Growth: ALCLS – NASDAQ: CLLS) has entered into a Joint Research Collaboration Agreement, an investment agreement relating to an initial equity investment of $80M, and a memorandum of understanding relating to an additional equity investment of $140M, with AstraZeneca (LSE/STO/Nasdaq: AZN). The Collaboration Agreement aims to accelerate the development of next generation therapeutics in areas of high unmet need, including oncology, immunology and rare diseases.

MACRO News:

The Treasury Department announced plans to accelerate the size of its auctions as it looks to handle its heavy debt load and with financing costs rising. In a development getting close attention on Wall Street, the department detailed its refunding plans for future debt sales.

  • The announcement comes with Treasury yields around their highest levels since 2007, a reflection of financial markets spooked over how much damage higher borrowing costs could exact. Most immediately, Treasury will auction $112 billion in debt next week to refund $102.2 billion of notes set to mature Nov. 15, raising more than $9 billion in extra funds.

Private sector payroll growth increased modestly in October but missed expectations, in a potential sign that the employment picture could be darkening, ADP reported

  • ADP reported that companies added 113,000 workers for the month, higher than the 89,000 in September but below the estimate of 130,000. Education and health services led with 45,000 new jobs. Other notable gainers included trade, transportation and utilities, financial activities and leisure and hospitality. <CNBC>

 

The pre-open Dow futures are DOWN -0.08% or (-25 points), the S&P is UP +0.06% or (+2 points) as the Nasdaq is UP +0.09% or (+12 points)

Stock futures were mixed on Wednesday, 11/1,

European markets were slightly higher,

Asia-Pacific markets closed higher.

 

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 traded higher, trying to close out a dismal month of trading with the Dow closed UP +123.91 points or +0.38%, the S&P closed UP +26.98 points or +0.65% while the Nasdaq closed UP +61.76 points or +0.48%.

Economic Data Docket: Fed’s “latest” policy announcement slated for release at 2 p.m. ET, followed by a news conference with Chair Powell at 2:30 p.m. ET. Also, job openings data for September are also due to be released, providing an update on the strength of the labor market.

 

Ebb and flow:

Q4: November – 1st session

·         October – 1 sick day, 9 positive and 12 negative closes

 

Companies in my headlights – It’s your decision; I provide ideas and context: looking for lost SHEAP …

I post about “indication intelligence” devoting my time to collection and analysis of information 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.

Positive Indications:

Tuesday’s closing price, some Monday, Friday, Thursday, Wednesday, Tuesday, Monday, Friday, Thursday, Wednesday, Tuesday, Monday and last Friday’s closing “numbers” with aftermarket dollar ($) and cent ($0.00) value and percentage (%)

Cellectis SA (CLLS) closed down -$0.04 with a positive +$1.60 or +163.48% pre-open indication

CRISPR Therapeutics closed neutral ($0.00) with a positive +$4.58 or +11.76% pre-open indication

 

Negative Indications:

Tuesday’s closing price, some Monday, Friday, Thursday, Wednesday, Tuesday, Monday, Friday, Thursday, Wednesday, Tuesday, Monday and last Friday’s closing “numbers” with aftermarket dollar ($) and cent ($0.00) value and percentage (%)

Ultragenyx Pharmaceuticals (RARE) closed up +$2.32 after Monday’s -$0.27 after Friday’s -$1.70 after Thursday’s +$1.68 with a negative -$0.35 or -0.99% aftermarket indication

Alnylam Pharmaceuticals (ALNY closed up +$0.39 after Monday’s $XX after Friday’s -$3.90, Thursday’s -$3.83 and last Wednesday’s -$4.47 with a negative -$1.80 or -1.19% aftermarket indication.

Sage Therapeutics (SAGE) closed up +$0.12 after Monday’s $xx, Friday’s-$0.87 and Thursday’s +$0.29 with a negative -$0.37 or -1.98% pre-open indication.

 

The BOTTOM LINE: Last month was a rough one for investors amid continuing worries over inflation and the future path of interest rates.

Higher bond yields have taken a toll, since they knock down prices for stocks and other investments, while slowing the overall economy and adding pressure on the entire financial system. The 10-year Treasury yield, which is the centerpiece of the bond market, has jumped from less than 3.50% during the spring to more than 5% recently, touching its highest level since 2007. <AP>

  • The 10-year Treasury yield ticked higher to 4.91% early Wednesday from 4.89% late Monday.
  • Investors are waiting to see what the Fed says after a two-day policy meeting ends on Wednesday. They were weighing the likelihood that the U.S. central bank will hold rates higher for longer.
  • While a bevy of sector earnings await this week,

 

I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”

  • "With major unknowns remaining around the central bank's reaction function, and another raft of stronger-than-expected data helping boost U.S. yields, rate differentials are tilting more aggressively against the yen as the session unfolds."

Today’s relevancy from Friday’s session and the week’s perspective:

  • Forecasting short-term directional movements in the stock market with percentage (%) accuracy is impossible!
  • The stock market correction intensified this past week, with the major indexes all falling to multi-month lows amid mixed earnings. Only, the Nasdaq eked out a gain Friday; though well-off session highs near the 200-day line. So, a new stock market rally attempt is underway. But it will take a lot more than that to signal a convincing uptrend. <IBD>
  • A summed-up quote, “We still have a shaky economic outlook. So, while the third quarter GDP print was extraordinarily high, I think everybody still expects that the US economy is going to slow down. The only question there is how much is it going to slow down and how fast” < Dave Sekera, chief U.S. market strategist at Morningstar>
  • Investors should be very cautious, largely holding cash!

What the sector patterns and markets are telling me:

  • Uncertainty reigns as Pfizer's (PFE) shares were flat after the drugmaker reported its first quarterly loss since 2019.
  • All three major U.S. indexes declined for the month, and the S&P 500 registered its third straight monthly loss in its longest losing streak since March 2020.
  • An aftermarket that reeks of know unknows
  • A sentiment factor driven by algorithms and electronic trading,
  • Remember, the closer we get to earnings releases <LPS or loss per share sweepstakes> the leaner gains or expressive losses are going to be!
  • The ongoing Israel-Hamas war has raised questions of a potential oil supply crunch and a resulting rise in fuel prices if the geopolitical instability spreads to neighboring oil producers in the region.

 

I hate to be so negative or contrarian but, this is a NO spin zone and facts are its product; I am more frequently right than consequentially 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. 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 its 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.