The market ended the day mixed, with Private Payroll numbers showing optimistic job market signs.
Today’s market closed with a mix of green and red. The S&P and DOW indices added to their gains this week, while the NASDAQ struggled.
During our research today, I came across a notable statistic. When there is a double-digit gain in the first half of a calendar year, the S&P and DOW have never ended the year lower than they started. This comes from Refinitiv data that goes back to 1950, according to CNBC. While it's possible that past trends do not repeat in the future, it's an interesting historical data point to consider.
By the way, the Private Payroll numbers came out today and showed positive signs for the job market. Private Payroll doesn’t include farms, government jobs, and non-profit work, so it is a more accurate reading of the employers' financial situation across the country.
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Revisiting gene-editing stocks (EDIT, NTLA, BEAM)
This week, we discussed news that has helped push gene-editing stocks up. Today, both Editas (EDIT) and Beam Therapeutics (BEAM), another BioTech company in the same space, were up double digits by the close today. It seems the ripples created by Intellia’s groundbreaking results earlier this week are still pushing gene-editing stocks upwards. Optimism surrounding advancements in an industry often can pull similar stocks higher, and we’re seeing that in action this week.
Intellia (NTLA) itself is capitalizing on the excitement. It announced a public offering of new common stock, as the share price still hovers above $150. It's a smart strategy. Drug development needs cash, and it's a smart decision to raise money when the oven is hot so to speak.
As we discussed, companies like these are clearly very volatile, particularly when clinical trial results are made public. Investors struggle to keep their emotions out of the mix, and prices fluctuate wildly. There is a lot of promise in gene-editing medical advancements and it's exciting to own shares. That being said, it may be worth waiting for prices to consolidate since we have already seen the cyclical nature of these stocks. My plan is to hold my gene-editing stocks and let them ride but only add when there is bad news.
As a reminder, you can find a collection of gene-editing stocks by clicking here.
AeroVironment (AVA) earnings report results in a sell-off, should you buy the dip?
On the loser side, AeroVironment Inc (AVAV) ended the day in the red. It is a defense contractor that deals mostly with unmanned aerial vehicles or drones. Today, its stock dropped almost 9% despite yesterday’s earnings report. It appears that the increase in revenue over last year’s quarter was only a small jump, much lower than investors and analysts predicted.
This sell-off might be somewhat of an overreaction though. If you look at its Stock Card, the company has high growth potential and solid operations! Lately, it has been expanding its operations through acquisitions. In February, the company bought Arcturus UAV, to expand its unmanned aerial programs. More recently, it acquired Telerob in May, branching out into unmanned ground vehicle programs. This sell-off may be presenting an opportunity for investors to pick up a couple of shares on sale!
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