Market Morning Sentiment - Aug 1st
The major averages finished the week with more mixed results on Friday as the S&P500 and Nasdaq gained 0.16%, 0.14% respectively,while the DJIA lost 0.13%.
The S&P500 lost 0.1% for the week, but gained 3.6% for the month. The benchmark index is up 6.3% for the year.
The Nasdaq performed well gaining 1.2% for the week and 6.6% for the month. The tech-heavy index is up 3.1% YTD.
The DJIA had a rough week falling 0.8%, but finished the month up 2.8%. The blue chip index is up 5.8% on the year.
Quarterly returns were largely responsible for the differential results. The Nasdaq benefitted from upside surprises from tech giants Apple($APPL), Alphabet($GOOG) and Facebook($FB), while the DJIA was pressured by disappointing results from ExxonMobil($XOM) and McDonalds($MCD). The S&P500 split the difference.
Sentiment was pulled down due to disappointing results on the economic front. The US economy grew at a slower pace that anticipated in the second quarter as the advance reading of second quarter GDP missed estimates (1.2%; consensus 2.6%). The lackluster growth can be largely attributed to a decline in business investment. Businesses cut fixed investment by 3.2%, the biggest drop since 2009. Inventories also contracted for the first time since 2011.
Disappointment over the BOJ's latest easing action also weighed. The BOJ announced that no changes would be made to its interest rate or bond-buying program. They will however, increase purchases of ETF's to 6 million yen from 3.3 million yen.
With economic and political uncertainty, a lack of clarity of what will happen next in the UK, concerns about anemic global growth, and equities at all-time highs, social sentiment on the SPY is highly negative.
$KERX Sentiment and Chatter Volume
78% Strong Buy
Keryx Biopharmaceuticals event spike in sentiment ahead of earnings
$KERX is a biopharmaceutical company focused on the development and commercialization of innovative medicines to help treat people with renal disease. In 2014 the company launched its first FDA-approved drug in its 17-year corporate history, Auryxia (ferric citrate).
Auryxia is used to help lower the serum phosphorous levels in patients with chronic kidney disease on dialysis. It is approved in the US, Japan and the EU and is the first and only absorbable iron based phosphate binder.
Auryxia's launch in 2014 however, did not go well. Since then,$KERX stock has been halved.
Investors are starting to exhibit more optimism towards the marketing and commercialization of Auryxia. Management has beefed up its sales team and is motivated to change its commercializtion strategy to focus in on patients that are already on phosphate binders, but arent receiving an adequate amount of control.
Additionally, ferric citrate (Auryxia) is currently going through a Phase III study for the treatment of iron deficiency anemia in adults with non-dialysis dependent chronic kidney disease. Based on the results of the study,$KERX plans to submit an sNDA to the FDA in the third quarter to expand the label of ferric citrate.
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