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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The Consumer Confidence Report boosted the market into the green today, but only slightly.
All three indices finished Tuesday in the green, but only barely.
This may be due in part to the new Consumer Confidence Report released today. This report gives us an idea of how consumers see the state of the economy. The report shows growing labor market optimism and a purchase-oriented attitude going forward.
The S&P was split roughly 50/50 between gaining and losing stocks today, with not much market breadth as you would expect for ending 4 days in a row positive. This is indicative of investor interest surrounding more specific stocks, than the market as a whole.
Cerevel Therapeutics (CERE) jumps 136% after announcing positive trial results for their breakthrough schizophrenia treatment.
Cerevel Therapeutics Holdings Inc (CERE) was one of the biggest gainers on Stock Card’s winners and losers lists today. Cerevel is a neuroscience research and development company with plans to revolutionize medical treatment for mental diseases.
Yesterday, it reported positive clinical trial results for the drug CVL-231, which combats schizophrenia. This once-daily medicine has much fewer side effects than other treatments, so it’s not a surprise that the company’s shares shot up 136% today.
Cerevel has multiple compounds currently going through clinical trials and more in the pipeline, so the stock can keep growing. But, at the same time, it has the risk of crashing if there is bad news from any of the trials.
When it comes to drug development stocks, what matters is whether the company has enough cash available to keep at its trials without running out of money. Also, drug development stocks are typically risky bets with extreme volatility. So if you invest, be ready for high volatility.
The so-called “Amazon of Africa,” Jumia Technologies (JMIA) is struggling with its operations, giving investors a chance to buy the dip.
For the loser stock of the day, let's talk about the “Amazon of Africa,” as they call this next company. Over the course of last year, Jumia Technologies (JMIA) share price shot up over 398%. Today, we’re taking a look at the stock because of it’s 21% drop this quarter. It’s currently hovering quite lower than its all-time high. Even over a few months, such a high price jump is hard to sustain for any company. This is even more difficult if you struggle to turn a profit, like Jumia.
Despite being widely used in 11 African countries, the company has high overhead costs, such as upkeeping warehouses. Therefore, Jumia is transitioning its business model. This includes expanding into the third-party and dropshipping market and investing in infrastructure for pick-up locations. May’s earnings report reassured investors that they have a strategy to become profitable.
Moreover, its new FinTech division JumiPay is expected to increase profits and encourage customers to purchase more from within the Jumia ecosystem.
While this transition may look promising, it puts the company through a rough patch. I worry the company is stretching too thin geographically and across several business units, attempting to expand and evolve so much of its strategy at once. As an example, revenue was down 13% last year partially due to these growing pains.
Nevertheless, Jumia is on track to be a massive player across the African market. The challenges to scale operations is such a big hurdle that it would be hard for other players to achieve what Jumia has already done. So, my strategy is to bet small and steady when I find the stock beaten down.
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S&P and NASDAQ hit record highs as court rulings boost tech stocks.
Today’s market closed with a mix of green and red. While the DOW dropped points for the day, the S&P and NASDAQ closed at record highs once again!
Interestingly, the tech sector is on the rise while cyclical sectors like energy and transportation are falling. Overall, investors are waiting for a few economic indicators later this week, including the monthly employment report to help economists analyze the nation’s progress. We'll discuss them once the reports are out.
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Intellia Therapeutics (NTLA) Announces Breakthrough Interim Trial Results
The first gene-editing stock to discuss today is Intellia Therapeutics Inc (NTLA), up more than 50% today. This price jump is thanks to an important announcement regarding positive interim results for gene-editing trials on interior organs.
CEO John Leonard said that this breakthrough would allow them to expand their gene-editing capabilities to fight against genetic diseases. Standing at the edge of a new frontier in medical care, this seems like a company to keep an eye on as they continue to develop new approaches to genetic issues.
I own a few shares, and I picked them up along nine other gene-editing stocks as a bet on the future of personalized medicine. I only wished I bought more when the gene-editing stocks lost some momentum earlier this year.
STOCK CARD COLLECTION
Today, two gene-editing stocks grabbed my attention: Intellia Therapeutics Inc (NTLA) and Editas Medicine Inc (EDIT).
Last year, when Prof. Jennifer Doudna and her colleagues won the Nobel Prize for the discovery of CRISPR technology, we published the gene-editing collection on the Stock Card platform. You may have already seen it. Type in "genome (gene) editing" in the search bar, and you get the list of companies making progress in this rapidly-growing market.
>> Get the list of gene-editing stocks.
Editas Medicine (EDIT) gets pulled from the death spiral by gene-editing industry breakthroughs. So is it a dip worth buying?
Riding the coattails of Intellia’s hype this week, Editas Medicine Inc (EDIT) also saw a jump in share price. However, Editas has had a rough year, stuck in a downward spiral since coming into the new year as high as $90/share. Interestingly, Editas' co-founder Jennifer Doudna is the same professor who won the Nobel prize for discovering CRISPR. Although Jennifer quit Editas, the company is still among the leaders in the industry.
The main research program for this biotech company is EDIT-101, a treatment for hereditary blindness. Editas is also tackling sickle cell disease, and received FDA approval for children’s tests last week.
EDIT follows closely behind its bigger brother Intellia (NTLA), we just discussed. It’s important to note that CRISPR and gene-editing technology is in their first innings, and there is so much more left to be done in this industry. For example, Intellia’s latest announcement that pushed the stock up 50% was only for a six-person sample. Much of this field is still open for development. If you want to benefit from the upside potential in this rapidly growing industry and feel comfortable with the inherent risk that comes with investing in innovation, consider Editas and other stocks from the gene-editing collection the next time you log in to research stocks on Stock Card. That's, indeed, what I plan to do this week.
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Investors mostly interpret the 3.5% rise in personal consumption expenditure price index as a sign of economic growth.
The NASDAQ was the only index ending Friday in the red, while the other two indices wrapped the week in the green.
One economic indicator that led to the market's mixed results is the personal consumption expenditures price index. This is an indicator used by the Fed to track inflation. The latest report shows a 3.4% increase since May of last year. On the one hand, it confirms investors' concerns around inflation. On the other hand, it can be a confirmation that our economy is growing.
Two-for-one special: SPCE gets approval for commercial flights, while NKE reports impressive earnings through online sales.
Today's winner section is a two-for-one special, folks. We’re looking at two stocks that were high up on both of Stock Card’s most-viewed and winners' lists. One is space tourism company Virgin Galactic (SPCE), and the other is athleticwear giant Nike (NKE).
With a new corporate space race unfolding in front of us, all eyes are on which company can get commercial space flights up and running first. Virgin Galactic crossed a major milestone today, announcing their FFA approval for commercial passengers. This was great for the company, as regulatory measures are often large roadblocks for companies entering the space industry. The price of SPCE shares jumped 39% today before close.
While an FFA approval doesn’t guarantee success, it sure cleared up some uncertainty for investors. Now, the company only needs to get its tech working and it is officially in the space travel business. The 600 pre-ordered tickets for a $250,000 ride each is surely a sign of confidence in the company's success. I own a few shares after buying and selling a few times through my Windmill Portfolio, which is a more short-term portfolio with more short-term buys and sells. I plan to hold the rest of the shares I own as a bet on Virgin Galactic's success.
Nike is the other headliner today, as it jumped 15% before the market closed. The price jump is due to the earnings report released yesterday, which blew previous estimates out of the water. Fourth-quarter revenue was up 96 percent compared to the prior year. Despite China’s heavy presence in its production and retail’s pandemic woes, the company has emerged as strong as ever.
The CEO was confident that this growth is due to the continued evolution of its business model, which is now coming through Nike’s Direct and online sales. The closure of physical stores tested their online systems, and the results were great. With this new business model transition, Nike is building an even more formidable company you may want to own in your portfolio, especially if you look for reliable stock picks that also pay a small dividend.
SoFi (SOFI) stock tumbles after an SEC filing spooks investors, should you buy the dip?
Two days ago we discussed SoFi Technologies (SOFI). Today the stock price fell 11%. So I thought, it's a good idea to see why.
The company had a 424B3 filing to conclude its SPAC merger. For those of you unfamiliar with this, a 424B3 filing provides regulatory notice of a change in merger terms. In this case, based on our team's research, it was related to the lock-up period for about 5% of its shareholders and executives on June 28th. Somehow, this filing spooked investors who were already watching a downtrend, and the negative momentum was only strengthened. If you have a better understanding of why the stock sold off, let me know.
When we covered the stock on Wednesday, I was impressed by its low-cost customer acquisition business model. I’m sticking to my guns with this one. This SEC filing is unlikely to affect the company’s success going forward. As long as this FinTech company can handle managing all the financial products it’s offering, it can be a major competitor to traditional banks. This is a dip that if it continues may make the stock worth a small spot in our portfolios as a bet on future banking.
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As U.S. banks passed the “stress test” and an infrastructure bill got bipartisan approval, the market climbed into the green.
The stock market had a good day, with all 3 main indices closing the session in green.
There were a few things that had investors feeling optimistic today. For one, a new deal for an infrastructure bill was confirmed. This will allocate money to transportation, power, broadband, and water systems across the country.
Moreover, authorities completed their “stress test” of U.S. banks, and the findings were released today. All 23 financial institutions have the cash and measures in place to manage through economic recessions.
Lastly, the new jobless claims report came out 7,000 lower than last week and confirmed the economy is on track.
All good news to send the indices into the green zone.
The Trade Desk (TTD) shares jump after Google announces a delay in phasing out browser cookies.
The Trade Desk (TTD) caught my eye on Stock Card’s list of winner stocks for today. Shares were up more than 16% today! Earlier in the year, the stock took a hit because investors expected the phase-out of the 3rd-party browser cookies could hurt the company's growth. Browser cookies collect data that is needed for ad tech companies and free online services (eg. social media) to serve customers relevant ads and profit from them. That's why investors weren't too happy when the news broke those cookies are going to get phased out.
Today, analytics and advertising titan Google announced that the plan to phase out browser cookies will be delayed until 2023. With an extended timeline, it's clear investors are now more optimistic about The Trade Desk's future.
If you ask me, the reaction to the initial news was not quite justified in the first place. The company has already started its own independent identity system known as The Trade Desk’s Unified ID that would replace the 3rd party cookies while putting control in the hands of customers to manage their data and identity. With Google cookies or without it, The Trade Desk is going to be doing just fine.
A few of Stock Card's VIP Portfolios already picked the stock when it got beaten down. Specifically, check out the new portfolio by Paul. Paul is the latest portfolio publisher on Stock Card. His Freedom Portfolio has beaten down the market quite nicely. I highly recommend visiting and following Paul's Freedom Portfolio on the Stock Picks page.
Biogen (BIIB) price continues its downward trend as the FDA reports complications in the approval process.
On the losers' side, Biogen Inc (BIIB) closed down -6.25% today, another day in a rough week for the company. This will be their 4th-day registering losses, with Biogen’s newest advancement in Alzheimer’s treatment seemingly up in the air again.
Originally, things seemed to be looking up for Biogen. They have a new drug undergoing trials for Alzheimer's treatment. A few weeks ago we heard about the FDA accelerating the approval of this first-ever Alzheimer's drug. Unfortunately, this week the FDA released a series of memos showing significant disagreement among the panel members about the approval. This was the main cause of today’s drop in price.
Although Biogen is allowed 9 years to provide solid and comprehensive studies of the drug’s effectiveness, it seems investors are being scared away. We saw another red day for the company, even after their public response assuring investors and the Alzheimer community that they were still on track. While this FDA approval process is quite volatile, generally tha is the price you pay when you invest in pharma companies reliant on the FDA approval process for their next breakthrough.
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