Jun 30, 2022 (Penny Stocks via COMTEX) -- 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 has 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.
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 of 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. In fact, 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? You bet and it's the high-risk, high-reward aspect that 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 bear in mind 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 /zigman2/quotes/230850337/composite NRSN -5.14%
Ardelyx Inc. /zigman2/quotes/205342310/composite ARDX -3.80%
Revelation Biosciences Inc. /zigman2/quotes/220090265/composite REVB +0.77%
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 an 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 big 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, which is expected to move into clinical trials next year.
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, which is 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. Now, the market looks to November 16th as the next potential date for a tentative NDA.
Why is ARDX stock moving today? Thursday the company announced a multi-million dollar financing deal with HealthCare Royalty Partners. 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.