Jobs Number Spooks Traders-Dow Erases Gains for the Year

Large cap biotechnology and MO growth stocks are taking a big hit today as hedgies take profits. Many of these stocks are still up YTD but profits are quickly eroding. Stocks to watch in technology, retail and biotechnology are :Intuitive Surgical ISRG ($507) down 3%,Lululemon LULU ($70) down 3.5%, Medivation (MDVN $81.56) and Regeneron  (REGN ( $124.70) down 8%. Even AAPL($566.70) is taking a 1.9% hit. The market is severely oversold after a nasty May with the S&P (SPY $128.90) down 8.38% over 30 days.But who could imagine the constellation of bad news over one month:

  • Facebook (FB $28.17) IPO debacle
  • JPMorgan (JPM $32.20) $2B blown bond derivatives trade
  • Weak jobs number
  • Slowdown in India and China
  • Ongoing crisis in Europe

Gold ($1612) finally caught bids today up $52 after testing lows down near the 1520 level.

Biotechnology has been unusually resilient as it has largely ignored the Euro crisis withe the IBB ($119.55) hitting new highs but correcting 5% lately off recent highs of $126.90. Many hedge funds and traders are positioned for ASCO news next week to drive cancer stocks so be alert to sell on the news which may have begun early. The QQQ has both biotech and tech growth stocks and is down 2% as of 12N EDT. Our mid-cap biopharmaceutical index is down 2.9%.

The 10 year TSY bond is now at 1.47% so deflation “lite” may be around the corner.

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