Tech Goes from Laggard to Leader Taking Strong  Biotech Sector Along for the Ride

Tech stocks rallied big today with the NASDAQ up 2.1% to 2802, The Dow hit a new 2 1/2 year high up 1.5% to 12,453.The main catalyst was Intel (INTC $21.41) up 7.4% beating EPS estimates of 59 cents vs estimates of  46 cents driven by sales outside the U.S. and server chips. It was only two days ago that gloom and doom had set in from the S&P warnings  on U.S. debt. The trend as usual is that biotech follows tech and most indices and ETF’s were up close to 2%: FBT ($42.81),IBB ($105) 10 year high!, and XBI ($71.43) all time high since 2006. Sellers were out of the market today from the beginning primed by sales of Portuguese debt and strong European markets. Buyers returned to more speculative small and mid-cap stocks with only a few stocks down among our mid-stock index of 33 stocks.

The Rayno Life Science Portfolio was up over 2% with lots of help from the big winners YTD and then some: Alexion (ALXN),Biogen (BIIB), Exact Sciences(EXAS), Exelixis (EXEL), Illumina (ILMN),Regeneron (RGEN), and United Therapeutics(UTHR). Cubist (CBST $33.27) soared 5% to a five year high.

Our turn-around and value pick Albany Molecular (AMRI $4.76) is getting traction up 2.37% today.

Moving along to large cap players Amgen and Gilead who reported earnings today:

Amgen (AMGN $54.96 down 2% after hours) facing headwinds on sales of their blockbuster anemia drugs reported quarterly net income of of $1.13 vs $1.17B of a year earlier. Sales of their new product denosumab for osteoporosis and cancer exceeded forecasted reaching $42M. Total revenues for the quarter were $3.7B in line with expectations. Forecasts for the year were reiterated.

Gilead (GILD $39.43 down $3.63% after hours) missed Q1 profits of $0.97 with $0.87 on a 7.6% revenue shortfall to $1.93B. Core AIDS drug sales  as well as royalties missed Wall Street forecasts. Full year sales guidance in the $8B range held. Balance sheet cash increased from $5.32B to $6.36B.

Raygent » 2009-2010 Life Science Portfolio

Many tools and diagnostics players report later this month.

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