CLDX +14% On Friday; GIMO +13.31%; SRPT +2.68%

CellDex (CLDX) Rises 14%, GIMO +13.31%, SRPT +2.68% On Friday

What a run for CLDX last week. The shares closed out Friday up $2.62 to $21.27 for a gain of 14.05% and over 30% for the week. I believe the shares could still go considerably higher and I wouldn’t be shocked to see the shares trade in the mid-$30s in the not too distant future.

Gigamon (GIMO) closed the week up $3.62 to $30.82 and a gain of 13.31% on Friday. The company IPO’d about two weeks ago and they will report earnings on July 29. I like the future of this company.

Sarepta Theraputics (SRPT) closed out the week over $40, up $1.06 to $40.67 and a 2.68% gain on Friday. SRPT will meet with the FDA sometime this quarter regarding their application for accelerated drug approval for their ground-breaking Eteperlisn drug and the treatment of Duchenne Muscular Dystropy. If they get a go ahead from the FDA, price shares will surge. If their application is delayed, shares will likely retreat. I believe they get it; but, no guarantees.

Meanwhile, NPSP, ACAD, TSRX and CPRX all held steady.

U.S. Third Quarter Earnings Begin Monday, July 8th, With Alcoa Out First After The Bell

The DOW ended the week Friday up 226pts. (for the week) or 1.52% to 15,135. The DOW enters 3rd quarter earnings season up 15.50%ytd. The S&P added 26.61pts last week to close at 1631 and is up 14.42%ytd. The tech-heavy NASDAQ gained 76.13pts. or 2.24% to 34779 and up 15.23%ytd. Bond yields and treasury notes are also on the rise with the 10yr. T-Bill hovering just above 2.7% (its highest level in two years). Gold meanwhile, was down $29 on Friday to $1222 per troy ounce (more on that later).

U.S. stocks got a boost Friday from dovish statements from the Bank of England and the European Central Bank (ECB), and a stronger than expected June Non-Farm Payrolls number. ECB President Mario Draghi said Friday that the ECB expects to keep interest rates “at present or lower levels for an extended period of time.”

The Labor Department said Friday that the U.S. economy added 195,000 net new jobs in June, and revised its May and April employment estimates upward by a total of 170,000 jobs. The U.S. is now averaging/creating 202,000 net new jobs per month thus far this year. The jobless rate however held steady at 7.6% in June and unchanged since March. The labor participation rate also remained at 63.5%. Hidden in these ‘rosy’ jobs numbers was the fact that the number of involuntary part-time workers in the U.S. (those working part-time but wanting full-time work) surged by nearly a third of a million (+320K), while full-time employment decreased. Perhaps one of the reason why a key element of Obamacare has now been delayed to 2015. Overall, 11.8M Americans are out of work — 4.3M of whom have been unemployed for at least six months.

Gold continues its slide downward, closing at $1222 per troy ounce and down $28 on Friday. Louise Yamada of Yamada Technical Research and one of the most respected technicians on Wall Street and worldwide says gold is likely headed lower to the $1155 level. If it breaks below $1155, Ms. Yamada said gold could fall all the way to the $1000 level. She is advising clients not to buy here or as she said, “don’t try and catch a falling sword.” The ‘shorts’ and the ‘bears’ appear to remain firmly in control of the gold trade. Conrad de Aenlle writing in today’s(Sunday, July 7) New York Times Business Section notes that mutual funds specializing in mining stocks lost average of 34.5% this past quarter. Ouch!

Earnings

Alcoa is the first out of the box on Monday after the bell, JP Morgan and Wells Fargo report Friday morning. Most of the earnings will come in the next three weeks. The bar has been set pretty low. Citi Group recently wrote that earnings preannouncements were the most negative since 2009 — 6.5 negative preannouncements for every positive one. So, small positive beats may well propel stocks higher.

All for now. V/R, R.C. Porter

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