Risk On With Jobs Data in Sweet Spot
Life Science Stocks Rally 2+ %
Stocks rose over 1% after analysts felt jobs report was “not too hot nor not too cold” extending sentiment for an accommodative FED. The rally is holding before the close as investors feel bullish after a volatile week.Some analysts are forecasting a shift from defensive stocks like healthcare and utilities to cyclicals and industrials as the economy continues to improve. Lipper data showed a $9B shift out of bonds into equities as the 10 Year Treasury approaches the 2.2% yield. However, the “great rotation” out of bonds has not yet occurred.
Life Science stocks are having a great recovery from the first major correction of the year with the IBB (179) up 2.3% and has recovered from a 5 day swoon to level below 170 but off all time highs in May of $189.
Rayno Life Science Focus stocks were green with considerable strength in large cap biopharmaceuticals: Alexion (ALXN), Biogen (BIIB), Gilead Sciences (GILD), Regeneron (REGN) and Seattle Genetics (SGEN). Smaller cap stocks were weaker: Achillion (ACHN), Endocyte (ECYT) and Viropharma(VPHM).
Rayno Diagnostics and Tools stocks are also having a good day with following big movers: Alere (ALR), Exact Sciences
(EXAS), Hologic (HOLX), Quidel (QDEL), Sequenom (SQNM) and Vermillion (VRML).ThermoFisher (TMO) was down 2% on a $2.2B equity offering to pay for their acquisition of Life Technologies (LIFE).
See links above for news on Exact Sciences and Hologic. Exact appears to be benefiting from an article in Sunday’s New York Times questioning the cost of colonoscopies.
No changes have been made in the Rayno Life Sciences Portfolios other than raising cash levels.