June 15-Update 2 after close…Biotechs Down with Techs-Red Screen Day
- Very few winners today: IBB down 0.77%, XBI down 1.36% to $71.55 near 52 week high of $73.
- ABBV near new highs at $70.60, BLUE up 24.7% for past month.
- EPZM soars 17% on EZH2 inhibitor, RXDX up 5.8% continues run on NTRK inhibitor.
- Trump Executive order on drug pricing tomorrow? Value based contracting?
June 12 -Update after close…NASDAQ 6175 Bounces off the early 10am Bottom
- NASDAQ was down only o.52% today after opening down almost 1.5%
- QQQ shows accumulation but needs to hold $140.
- Biotechs stable near ASCO highs last week: XBI at $71.26
- Large cap biotechs and drugs in the green today: BMY, GILD, RHHBY
- High flying mid-cap bios selling off: INCY, SGEN
- The XLV is at 52 week highs $77.42.
The resilience of large cap drug and biotech stocks in the face of the “tech wreck” translates to a strong hold for now. However be wary of more harsh talk from Washington on drug prices beginning with hearings tomorrow on the Cost of Prescription Drugs .
Tech Wreck Shows Need for Diversified Portfolio-Biotechs Hold…Update-1
NASDAQ Plunges 1.8%
Energy, Financials and Industrials Gain in Sector Shift
The sector shift hit hard last Friday with money moving out of the big 2017 winners and moving into lagging energy, financial and industrial shares. High flying technology and “FAANG”shares took a break from rocketing momentum: Facebook (FB) down 3.3%, Apple (AAPL) down 3.88%, Amazon (AMZN) down 3.2%, Netflix (NFLX) down 4.73%, Alphabet (GOOGL) down 3.4% and Tesla (TSLA) down 3.4 % after hitting 62 week highs. . Semiconductors up over 20% YTD sold off as well with the SMH down 3.87% and NVDIA (NVDA) down 6.47%.
On the winning side of Friday’s trades were the lagging energy sector XLE up 2.4%, financials XLF up 1.89% BAC up 3%,and healthcare showing stability XLV up 0.68% and 12.45% YTD.
Many large cap drug stocks did well: BMY up 1.7%, JNJ up 0.75%,MRK up 1.88% and PFE up 3.21%. Biotechs coming off a nice run through the ASCO Conference were slightly down IBB off 0.22% and the more volatile XBI down 0.38% although many small cap biotechs ran up.
Rayno Biopharma winners include : ABBV up 1.32%, GILD up 0.9%, and BLUE up 0.81%
So a big part of 2017 investing strategy will be picking the right sector. Healthcare appears to offer modest returns with a dividend play. Update at end of trading Monday.