Update-2…3:15p EDT…. Mixed day-new post after close, XBI down 0.64%, IBB down 0.94%,, Dow sell-off down 0.43%.
Update-1 5/22… Not much follow-through from yesterday but trade-able.A horrible news week with politics, tariffs, chips and China in headlines.
- Large Caps are favored: AMGN, BIIB, REGN ,VRTX.
- Mid-cap movers up: BPMC,GWPH,NBIX,NVCR,SGEN.
- Healthcare looks good-XLV up 0.55%. ARRY down 0.85%.
Oscillating Market Buffeted by Geopolitical Headlines
Gene Therapy Stocks Are Strong
Prolonged Trade War in Headlines for Retail and Semiconductors
Biotech vaults back on Tuesday after a two-day sell-off for no apparent reason other than some relief from the geopolitical trade turmoil was offered by the Trump administration by giving Huawei a temporary reprieve. Whether it was concerns about the market weakness or the sheer size of Huawei strong positioning in many technology companies, the Administration decided on a “time out” message.The U.S. leading global position in semiconductors seemed at risk due to its dependency on China sales.
Healthcare (XLV) up 0.94% and biopharma stocks rallied in tandem with NASDAQ with the QQQ up 1.04% to $181.83 but the QQQ is still under the SMA 50 trend line a rather unconvincing move. The XBI soared up 3.1 % to $83.27 at choppy congestion range between $80-85 but way off April highs of $94. The IBB was string up 1.98% to $104.35 but with a choppy chart after a triple top this year at 4115. As we approach ASCO within two weeks we should expect strength in the XBI as it represents in its holdings many of the small and mid-cap players with clinical news in immuno-oncology. But it will harder to make money trading ETFs so do your homework and pick stocks for the intermediate term.
Here is a snapshot of action today among the stocks we track but keep in mind that the biotech sector has been choppy from day-to-day.
- Large Cap top winners: BMY up 2.42%, REGN up 2.44%-both laggards over 12 mos.; most other large caps were up 1-2%.
- Mid-caps had a “green screen” day similar to last Thursday. Notable 3.5%+ winners were: ARRY up 22.95% at a 12 mo.high, BPMC up 4.07%, EXEL up 4.18%, FOLD up 3.97%, NKTR up 3.95%, NVCR up 3.97%, SGEN up 4.26%, ARRY always a takeover favorite announced that their colorectal (CRC) combo treatment met its primary endpoints without chemotherapy.
- Gene Therapy stocks were strong: CRSP up 4.62%, EDIT, up 7.18%, NTLA up 5.41%. VYGR up 5.31%. We will update this gene therapy/editing performance grid by week-end.
Disclosure: long ABBV, BMY, CRSP, MGTX, MRK, RHHBY. Also several other small positions: AMRN, INCY, MRNA etc.