August 2, 2019 8:50am

As earnings, jobs report and China tariff issues overwhelm share pricing

Beware Q2 earnings’ “LPS” <loss-per-share> perp walk: on 8/2 Stemline Therapeutics (STML)  

Pre-open indication:  Please just give me my “sector” Wheaties or some of Popeye’s spinach

Framing the headlines, the week’s earnings, today’s earnings and next week’s earnings

 

The remainder of the month’s trading sessions will be critical for the RegMed sector which will establish whether expectation of August and quarter’s (Q2) initiate a slow downdraft. 

 

Dow futures are DOWN -0.20% (-52 points), S&P futures are DOWN -0.32% (-9 points) and NASDAQ futures are -0.62% (-49 points)

 

U.S. stock index futures were lower Friday as investors digest news of an additional 10% tariff on Chinese imports from the U.S. ahead of a key jobs report;

European stocks plunged after U.S. President Trump said he would slap a 10% tariff on the remaining $300 B of Chinese imports from next month as the pan-European Stoxx 600 tumbled 2% by mid- morning;

Asia Pacific stocks dropped after Trump announces more tariffs on China; Hong Kong, Japan drop more than 2%

  • U.S.-China trade war developments have roiled markets for more than a year, and there have been signs the rafts of additional tariffs from both sides are having real effects on economies around the world. As has been the case for most other days featuring increased hostilities between Beijing and Washington; today all other major Asia Pacific stock markets recorded losses.

 

Data docket: nonfarm payrolls at 8:30 a.m. ET. Average hourly wages and unemployment rate figures for July will be released at the same time.

  • Trump is also scheduled to make a trade announcement on the European Union later on Friday.

 

 

Henry’omics:

With all the words being said or twittered – who or which company can get a headline as Q2 results roll forward?

In a series of tweets on Thursday, President Donald Trump said the 10% charge would be imposed on $300 billion worth of Chinese goods. The levy will take effect starting September 1<CNBC>.

Trump’s tariff threat came as a surprise to financial markets in the previous session, in large part because negotiators for the two sides had just met earlier this week in China Trump is also scheduled to make a trade announcement on the European Union later on Friday.

 

From Thursday’s evening post, “which company’s losses are lagging estimates? Too many which is affecting share pricing in Q2 earnings’ results.”

The NASDAQ was down -64.30 or -0.79% to 8,111.12;

  • The close was positive with an Advance/Decline (A/D) line of 22/19 and 2 flats and 2 acquired;

The IBB closed up +0.68% and the XBI closed up +0.27%

  • The CBOE Volatility Index, a gauge of investor anxiety, shot to its highest reading since 6/4.

The range of the 22 upside was +0.14% (VYGR) to +6.06% (ADRO) while the 19 downside ranged from -0.06% (NTLA) to -9.53% (PSTI);

  • 4 out of the 22 upside had higher than the 3 month average volume;
  • 8 out of the 19 downside had higher than the 3 month average volume;

 

Q3 so far:

August had 1 POSITIVE close

July had 9 positive, 1 holiday and 13 negative closes;

 

Companies in my headlights – It’s your decision; I provide an idea and context:

Pick and choose among yesterday’s decliners based on Q2 results but, only one (1) reporting – Stemline Therapeutics (STML) ….the same old quarterly issue -- expectation, estimates and anticipation!

ReNeuron (RENE.L closed down -$1.00 after Wednesday’s -$1.50 and has a negative pre-market timing negative differential of -$3.50 – SELL ;

 

 

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.