Classic Risk-Off Market With 10 Year Yield at 2.6%-Healthcare Sector Still Selling Off Down 1.68%
The market is not celebrating the Debt-Limit Deal. A new reality may be setting now that all the dirty laundry has being aired. As of 2:11p EDT the S&P is down 1.63% to 1266 below its technical support of 1257. The NAZ is down 1.72% to 2697 but still up 1.7% YTD. The QQQ’s are no better, off 1.92% helped by a few techs and Amgen (AMGN $53.69) now paying a 2% Div and Life Technologies(LIFE $44.19 ) both catching bids. Qiagen (QGEN $16.40) is trying find a bottom.
Looking for winners in the Rayno Life Sciences Portfolio we find GenProbe (GPRO $61.68 up 2.78%. GPRO should recover from the auction failure that drove the stock to $86.96. Although total revenues were down 2% and EPS off 21% Dx sales were up 18%, the guidance is about the same and the balance sheet is strong with almost $400M of cash. This is a good place to add more GPRO for the long term as there is strong support at $60.
Adding life to the Life Science sector also was Techne (TECH $77.57) up 6.58 % without big volume on in-line results but beating on revenue. The 52 week high was $86.43 .Traders are taking profits on a 5 day trade (with a recent high of $63) of Illumina(ILMN $59.53) down 2.2%.
Mid cap biopharmaceuticals are hard hit again with our index down 2.65%.