Biogen – Buy Signal

NYS:BIIB is under Algo Engine buy conditions and is a current holding in our US model portfolio.

Biogen is an NYSE listed biotech company specializing in the discovery, development, and delivery of therapies for the treatment of neurological disease to patients worldwide.

The stock rallied 11% overnight after the FDA accepted an application for Biogen’s experimental Alzheimer’s drug.

AbbVie – Buy Signal

AbbVie is now under Algo Engine buy conditions. We’re looking for buying support to build within the $85 – $95 range.

AbbVie reported Second-Quarter 2020 earnings with worldwide net revenues $10bn, an increase of 26% on a reported basis, or a decrease of 5% on a comparable operational basis, due to the COVID-19 pandemic.

AbbVie announced it completed its acquisition of Allergan, which was acquired on the 8th May, 2020.

Alexion – Algo Buy

Alexion Pharmaceuticals today announced that the company will report its financial results for the second quarter ended June 30, 2020, before the US financial markets open on July 30, 2020.

Alexion is a recent Algo Engine buy signal from the NASDAQ top 100 group of companies. We’ve added this to our portfolio and will review the upcoming result with close interest.

NASDAQ – Leading Indicator

The NASDAQ remains our leading indicator of global equity markets.

We draw your attention to the index breaking below the 10-day average, this provides an early warning for stalling momentum.

For more detail on shorting/hedging strategies, please call me on 1300 614 002. 

Goldman Sachs – Q2 Earnings

Goldman Sachs Group remains under Algo Engine sell conditions.

Goldman reported Q2 revenue of $13.3bn & $2.4bn in profit. Estimates were for $3.78 in EPS and the number came in much higher at $6.26 earnings per share.

The report came out before the bell last night and GS was up 5.5% yet at the close, up only 1.3%.

Banks with exposure to trading revenue have seen strong market conditions in the June quarter, however, it’s likely that trading revenue will slow down in the back half of 2020.

Goldman set aside a higher than expected, $1.59bn for potential credit losses.

We continue to have a cautious outlook on the sector as we head into the remainder of 2020, downside risks remain from the economic uncertainty and the significant pressure from low-interest rates.

JP Morgan Q2 Earnings

JP Morgan posted a record $33.8 billion in second-quarter revenue and $4.69 billion in profit for the period.

The firm set aside $8.9 billion for expected loan defaults across its operations.

Jamie Dimon told analysts, If a relatively benign scenario emerges, JP Morgan will have too much capital saved and could resume stock buybacks as early as the fourth quarter. If a more severe recession happens, caused by a second wave of infections in the fall, the bank could be forced to cut its dividend.

Federal stimulus programs have supported individuals and small businesses in the second quarter, masking the true impact of the pandemic. It, therefore, seems reasonable to expect further deterioration in bad loan provisions.

A break below $90 in JPM will be seen as a loss of upside momentum.

Alexion – Buy Signal

NASDAQ listed Alexion Pharmaceuticals is now under Algo Engine buy conditions.

May 6, 2020-Alexion Pharmaceuticals announced first quarter 2020 revenues of, (27% increase on the same time last year).

On a GAAP basis, diluted EPS in the quarter was $2.50, a 4 percent decrease versus the prior year.

Non-GAAP diluted EPS for the first quarter of 2020 was $3.22, a 35 percent increase versus the first quarter of 2019.

Nike – 38% Sales Decline

Nike reported a quarterly net loss and a sales decline of 38% year-over-year. 

Business operations were hurt from stores being shut temporarily, and online revenue was not enough to make up for that. 

Nike reported a loss of $790 million, or 51 cents per share during the period ended May 31, compared with net income of $989 million or earnings of 62 cents per share, a year ago. 

Total revenue was down 38% to $6.31 billion from $10.18 billion a year ago.

We remain on the short side of the Nike trade.