Biotech Rally Underway Trying to Overcome Gloomy Macro Data…Update-1

Update 11/16 PM Biotech Rally Underperforms Energy up 2.99% and Telecom up 1.81%

The S&P and Dow rallied past Paris attack and terrorism concerns after an early morning stall. Biotechs underperformed weighed down by the Clovis Oncology (CLVS) NDA delay. The IBB was up 0.39% in a choppy session. Among the losers were mid-caps awaiting clinical milestones reflecting clinical development risk: ICPT, ISIS, KITE, ONCE, PBYI, RDUS etc. We need a few more days of trading this week to see that the intermediate bottom holds in biotech.

In Dx and Tools Cepheid (CPHD) and Neogen (NEOG) are potential Q4 winners.

Update 11/16  AM

Clovis Oncology(CLVS) NDA Filing requires more data, stock down 70 in pre-market. This news may weaken many biopharmaceutical shares. Caution.

Update: 11/15 Sunday PM

Last Friday’s AM biotech rally faded a bit after the general market sold off late in the day. NASDAQ peaked at 12N then sold off to 4928 off 1.54%. The QQQ was down more off 1.96%. The 320 level is important for the IBB as it held there in late August. The healthcare sector also turned red. Markets may be jittery again tomorrow as investors await the reaction to the terrorist attacks in Paris.

The Group of G20 meets tomorrow in Turkey with terrorism dominating the agenda.

 

IBB iShares Nasdaq Biotechnology daily Stock ChartBiotech Rally: A Lot of Green on the Screen 12:45p EST

NASDAQ Down 0.8% at 4965

Amidst gloomy data on retail sales in October and tech earnings, biotech are trying to continue the highly touted Q4 rally. The October rally off the bottom has stalled weighed down by Q3 earnings from Celgene (CELG) and others. Healthcare costs are under continuous assault and drug pricing casts a pall over the sector with help from Valeant pharmaceuticals (VRX) always in the headlines for bad behavior.

As of mid-morning trading the biotech and drug sector is one of the few winners. Energy has been the major drag on the market (crude down again today) but materials are trying to bounce back today with the XLB up over 1%.

The IBB up 1.7% and XBI up 1.6% have decent gains and bounced off yesterday’s lows and up 8.9% for the past 30 days.

But trading was lively today among many mid-caps in immuno-oncology and rare (orphan) drugs and 90% of these stocks were up. The Rayno Life Science big movers were: Curis (CRIS), Ignyta (RXDX), Fibrocell Science (FCSC), Seattle Genetics (SGEN) and Vertex Pharmaceuticals (VRTX). Gilead Sciences (GILD) was a loser down 1.4%.

A recent report that Amgen (AMGN) and other large caps were looking for a sizeable acquisition brought forth the usual suspects and wild cards: Alnylam Pharmaceuticals (ALNY), Clovis Oncology (CLVS), Incyte (INCY), Isis Pharmaceuticals (ISIS) and Seattle Genetics (SGEN).

Even Tools and Diagnostics stocks picked up bids led by Illumina (ILMN)  up 7% which was added to the S&P 500. Other Dx/tools winners on the Rayno focus list include: Alere (ALR), Nanostring (NSTG), Pacific Bioscience (PACB) and Qiagen (QGEN)

Update for Monday am

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