Update-1 …10/21Abbott (ABT) stock soars 7 points since earnings beat.Guidance raised.

Update-1 10/19 …Healthcare Stocks Get a Lift from JNJ up 2.34% to $163 handle on an earnings beat with raised guidance.Is the JNJ vaccine the comeback kid because of mix and match potential with RNA vaccines? Pharma grew 13.8%, Devices 7.6%.

Large cap biopharma was green: GILD, LLY, PFE even a bounce for Vertex (VRTX) up 2.55%.

The XLV looks back on trend lime up 1.31% to $128.77. Medtech was up IHI 1.84%.

Merck (MRK) averted more free fall below $79 up 3% after a competitive antiviral COVID treatment from Atea (AVIR) failed a mid stage trial. Alternative therapies to complement vaccines are growing . Regeneron (REGN) was up 1.59%.

All of our mid-cap focus stocks in chart below CRSP, CYRX, VCYT were up over 3%.

We nibbled on the ARK Genomic Revolution (ARKG) a volatile ETF at the $76 level.


Broad Market Rally Led By Materials,Technology and Industrials

  • Best Market Week in Months But Biotechs Lag
  • Healthcare Notches some Gains Led by United Health
  • Can Momentum Return for Small Caps?

Robust earnings reports from big banks combined with good retail data drove a sentiment shift toward the bulls. A “glass half full” attitude came about from bank earnings, improved delta variant data and good demand from the consumer. Vaccination rates are up and booster vaccines are rolling out. The “re-opening ” or “reflation” trade is boosting cyclicals but technology Is a mainstay. Here are selected gains for the week among the S&P 500 indices: Materials +3.64%, Consumer Discretionary 3.64% , Info-tech 2.6% and the MidCap 400 +2.36%.

S&P 500 Healthcare was up 0.77% and the XLV was up barely 3 points to $127.97 teetering within the upward channel. Healthcare was helped by United Health (UNH) up 6% for the week and almost 20% YTD with an EPS beat up 26% and Revenues up 10% to $72.3B with EPS guidance raised.

But biotech stocks did not join the rally with the IBB fading after midweek up only 1.5%. We will need more earnings reports from some major large caps like Abbott, Anthem and Biogen later this week. Moderna (MRNA) is also a major overweight in the IBB so COVID vaccine trends are key. The XBI trades were similar to the IBB peaking midweek then selling off. Since the XBI is equal weighted in smaller caps it should seen as a better indicator of momentum and strength in the lagging biotech sector. You might want to check out this weeks Barron’s (subscription required) which has a good article on potential FDA approvals for blockbuster drugs. A small speculative gene therapy stock MeiraGTx Holdings (MGTX) is also covered so could be an indicator of investor appetite.

We need leadership and momentum from small caps so here are some updates from  our focus stocks.


Company Ticker P P Revs MCap P/B Recom Perfor Perfor
5/21 10/15 $M $B 6m % week %
Cryoport CYRX 51 70.26 169 3.11 5 1.5 36.24 6.43
CRISPR Therap CRSP 124 97 901.8 7.52 2.82 2.1 -18.2 -5.46
Veracyte VCYT 36 45.16 157.5 3.13 3.39 2 -6.25 8.66
More speculative
Pacific BIiosciences PACB 26.11 25.55 105.8 5.47 19.65 2.4 -22.65 1.88
Quidel QDEL 125 141.15 1,840 5.62 3.79 2.5 -0.46 -5.44
Teledoc TDOC 135.4 1.63 21.8 1.32 2.3 -13.75 2.78

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