Companies featured in this edition of the newsletter: ENZ, IMNP
The trading week was caught off guard with the release of the Employment Situation report for May this past Friday. The disappointment on the jobs front was met with a swift adjustment to rate hike expectations as the probability of a June rate hike dropped to 6.0% from 30.0% a week ago. The Dow finished the week down 66 points or -0.4% at 17,807 from 17,873 last week, and it is up 2.2% for the year. The Nasdaq finished the week at 4,943 up 9 points or 0.2% from 4,934 last week, and it is down -1.3% for the year. The S&P 500 finished the week at 2,099 up 0 points or 0.0% from 2,099 last week, and it is up 2.7% for the year. The Russell 2000 finished the week up 13 points or 1.1% at 1,163 from 1,150 last week, and it is up 2.4% for the year.
The Personal Income and Spending report showed a 0.4% increase in personal income and a sizable 1.0% increase in personal consumption expenditures. April marked the largest month over month increase in spending since August 2009. The bulk of economic data has been quite supportive of a pickup in growth for the second quarter; however, the Chicago PMI report for May was not. It fell to 49.3 from 50.4 in April. The Conference Board’s Consumer Confidence report for May fell to 92.6 from 94.7 in April. The ISM Manufacturing Index for May checked in at 51.3, which was up from 50.8 in April. U.S. light vehicle sales were at a seasonally adjusted annual rate of 17.45 million units in May versus a SAAR of 17.42 million units for April. The May run rate was 1.4% below the SAAR of 17.70 million units for May 2015. Total domestic sales decreased to 13.72 million SAAR from 13.84 million SAAR in April. On a seasonally adjusted basis, domestic auto sales increased to 5.16 million SAAR in May from 5.11 million SAAR in April. Domestic truck sales fell to 8.55 million SAAR in May from 8.73 million SAAR in April.
The initial claims for the week ending May 28 dipped by 1,000 to 267,000, and continuing claims for the week ending May 21 increased by 12,000 to 2.172 million. Initial claims were below 300,000 for the 65th straight week and will be seen by the Federal Reserve as being at levels that point to labor market strength. The May Employment Situation report produced a headline disappointment as job growth came up woefully short of estimates. Nonfarm payrolls increased by 38,000. Private sector payrolls increased by 25,000, and the unemployment rate was 4.7% versus 5.0% in April. April average hourly earnings were up 0.2% after being up 0.4% in April. Aggregate earnings were up 0.2% on top of a downwardly revised 0.5% increase for April. The average workweek was 34.4 hours versus 34.4 in April. May manufacturing workweek was up 0.1 to 40.8 hours, and factory overtime was unchanged at 3.2 hours. The labor force participation rate was 62.6% versus 62.8% in April. The trade deficit widened to $37.4 billion in April from an upwardly revised $35.5 billion in March. New orders for manufactured goods increased 1.9% in April on top of an upwardly revised 1.7% increase for March. The Non- Manufacturing ISM Report on Business checked in at 52.9% in May, down from 55.7% in April.
No market movers reported earnings this week.
This week there are several conferences of note taking place across different days. First, the RBC Capital Markets Global Energy and Power Executive Conference will take place on June 6-7, 2016 in New York. The 2016 Stifel 14th Annual Technology, Internet and Media Conference will take place June 6-8, 2016 in San Francisco, CA. The LD Micro Invitational 2016 Conference will take place June 7-9, 2016 in Bel Air, CA. The Jefferies 2016 Healthcare Conference will take place June 7-10, 2016 in New York. The Baird Global Consumer Technology and Services Conference 2016 will take place June 7-9, 2016 at the JW Marriott Essex House in New York. The Stephens 2016 Spring Investment Conference will take place June 7-8, 2016 at The New York Palace Hotel. The Goldman Sachs 37th Annual Global Healthcare Conference 2016 will take place June 7-9, 2016 in Rancho Palos Verdes, CA. The Gabelli and Company 8th Annual Movie and Entertainment Conference will take place June 9, 2016 in New York. The Deutsche Bank 7th Annual Global Industrials and Materials Summit 2016 will take place June 9, 2016 in Chicago, IL. The Citi 2016 Small and Mid Cap Conference will take place June 9-10, 2016 in New York.
Volume Alert: Enzo Biochem, Inc. (NYSE: ENZ), a pioneer in molecular diagnostics, saw a spike in its trading volume on Wednesday as it traded over 300,000 shares- that’s over two times it’s three month average daily volume.
Price Alert: Enzo Biochem, Inc. (NYSE: ENZ), a pioneer in molecular diagnostics, hit a 52-week high this past week on Thursday at $6.53.
Enzo closed the week at $6.22
Volume Alert: Immune Pharmaceuticals, Inc. (Nasdaq: IMNP), a biopharmaceutical company that applies a personalized approach to treating and developing novel, highly-targeted antibody therapeutics to improve the lives of patients with inflammatory diseases and cancer, saw a spike in its volume as it traded almost 5,000,000 shares- that’s fourteen times its three month average daily volume.
Immune closed the week at $0.34.
A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein. THE READER SHOULD VERIFY ALL CLAIMS AND DO ITS OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. This publication accepts compensation from companies that it features. This newsletter should not be regarded as an independent publication. Our editors may, from time to time, acquire positions in the companies that they cover. This could represent a conflict of interest. The CEOcast newsletter shall be under no obligation to inform readers about its trading activities. CEOcast's editors reserve the right to buy or sell shares in these companies at any time. The following companies, featured in this newsletter, have compensated CEOcast: Enzo Biochem, five thousand dollars cash per month. Immune Pharmaceuticals, ten thousand dollars cash per month.