Why The Stock Market Is Down Today
Why is the stock market down today? The final week of June and the second quarter has been jam-packed with economic data and inflation-related events. Fed Chair Jerome Powell recently said that the global economy had entered a “new world” as far as inflation goes. While he explained that Fed policy would adhere to one focused on containing it, he expressed that the economy’s expectations may need to get some adjustments.
“…now we’re in this new world where it’s quite different with higher inflation, many supply shocks and strong inflationary forces around the world. It’s quite a different environment.”
This came as GDP data confirmed the economy has slowed down during 2022. First-quarter GDP growth was revised down 1.6%. This readout was slightly worse than the previous estimates. It was also a stark difference compared to the 6.9% increase during the fourth quarter of last year. All these events against an already bearish backdrop have contributed to the stock market trading lower at the end of the month and quarter.
Not All Doom & Gloom – Enter: Penny Stocks
Even with the stock market down today, it isn’t all doom and gloom. As major indexes slip lower, there are more than a few penny stocks to watch right now. This seems to have become a trend for 2022 as cheap stocks remain a daily focus while broader trends send large- & mega-cap stocks to new lows.
Are penny stocks risky? Yes, and the high-risk, high-reward aspect is so attractive to day traders in particular. Though investing in penny stocks may be an entirely different beast, during the 2022 stock market crash, the individual moves made by stocks under $5 are unavoidable. The critical part for market participants to remember is that knowing how to trade is the most important thing to learn before diving into this volatile arena.
This article looks at a handful of penny stocks to watch while the stock market is down.
Penny Stocks To Watch
- NeuroSnse Therapeutics (NASDAQ:NRSN)
- Ardelyx Inc. (NASDAQ:ARDX)
- Revelation Biosciences Inc. (NASDAQ:REVB)
1. NeuroSnse Therapeutics (NASDAQ: NRSN)
Does NeuroSnse Therapeutics sound familiar? If it does, then you’ve probably been actively reading PennyStocks.com content for the last few weeks. We discussed it in our articles: Best Penny Stocks to Buy as June Ends? 3 to Watch, and yesterday’s 3 Penny Stocks To Watch After GDP Report. One of the things on the list of things to watch was a 6K filing published on June 29th. It stated:
“NeuroSense Therapeutics reports completion of the “in-life” phase of its 90-day GLP Toxicology study successfully. All animals appeared normal, with no significant findings observed. In this study the components of PrimeC, celecoxib and ciprofloxacin, were administered to rodents at doses 4x the maximal clinical dose. The company will present the data obtained in this study to the FDA as part of PrimeC’s drug development plan.”
Topping off the week of major developments was more headlines.
Why is NRSN stock moving today? One of these headlines was a report of positive preliminary results from its Alzheimer’s biomarker study. It showed the potential of NeuroSense’s combination drug, CogniC. The candidate is expected to move into clinical trials next year.
2. Ardelyx Inc. (NASDAQ: ARDX)
The biotech company, Ardelyx has been locked in a sideways channel for the better part of the last month. However, during that time, the company has reached some significant milestones. Its model centers around developing medicines for unmet medical needs, including its first approved product IBSRELA in treating irritable bowel syndrome. The company is also developing XPHOZAH, an absorption inhibitor to reduce phosphate absorption.
This month, XPHOZAH was in the spotlight after the FDA informed the company that its Advisory Committee for cardiovascular and renal drugs will discuss Ardelyx’s New Drug Application for XPHOZAH in chronic kidney disease patients. Last year, the company received a complete response letter from the FDA requesting more input from experts who care for dialysis patients. The market looks to November 16th as the next potential date for a tentative NDA.
Why is ARDX stock moving today? The company announced a multi-million dollar financing deal with HealthCare Royalty Partners on Thursday. The $20 million deal is based on future royalties and sales milestones from Ardelyx collaboration partner Kyowa Kirin. Kyowa is commercializing tenapanor, the active ingredient in IBSRELA and XPHOZAH, in Japan for hyperphosphatemia.
Ardelyx will receive a $10 million upfront payment from HealthCare Royalty, an additional $5 million after Kyowa Kirin gets regulatory approval to market tenapanor for hyperphosphatemia in Japan, and $5 million in the event net sales in Japan exceed a certain target level by 2025.
3. Revelation Biosciences Inc. (NASDAQ: REVB)
Shares of another biotech penny stock, Revelation Biosciences, jumped early on June 30th. The move comes as a continuation of post-market momentum. The company’s stock has been moving after Revelation announced that it completed dosing for its Phase 1b CLEAR clinical study of REVTx-99b in allergic rhinitis.
In a mid-June update, James Rolke, Chief Executive Officer of Revelation, explained, “We are excited to complete enrollment in this study and look forward to reporting the results in the third quarter of 2022.”
As the third quarter rapidly approaches, this may have come to light recently. The critical thing to remember right now is that REVB stock has gapped up significantly during premarket hours. So it will be interesting to see how things unfold as the final day of June moves forward.
Finding Penny Stocks To Buy
News can be a go-to option for potential catalysts if you’re looking for penny stocks to buy. Corporate filings, insider action, social media discussion, and industry sentiment are also ways to find a theme for your list of penny stocks. In any case, it’s worth mentioning that even if the stock market is down like it is today, there are still plenty of cheap stocks to trade, and knowing how to trade stocks is the first step to take.
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