1/11/23…Update-1…Broad Rally favors large cap growth AAPL AMZN GOOGL MSFT but CPI data coming tomorrow.
Healthcare stocks (XLV) lag after outperformance last year so a bit of rotation out of defensive to risk. Large cap biopharmas holding up nicely after #JPM 23 presentations: BIIB LLY REGN VRTX lead the pack.
Abbott Labs (ABT) our new MedTech pick last week at $110 was off 0.61% at $113.15. Morgan Stanley reiterated strong buy and increased price target from $117 to $137.
- Abbvie (ABBV) down 1.55% to $157 but concerns about Humira revenues longer term should be allayed by strong pipeline in Immunology with Rinvoq and Skyrizi with $17.5B potential in 2025. FW PE is only 13.6 with P/S of 4.79. Need to watch Humira sales erosion but negatives are well known. Announces deal for new mRNA biology modulators platform across immunology and oncology.
- XBI up almost 1% to $84.38 trying to get back to summer ’22 highs; IBB sluggish but up 0.57%, ARKG up 3.24% to $31 level. LABU up 2.5%. SMID stocks look good for trades.
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Volatility Emerges With Late Morning Sell-Off
- A bit of sector rotation as chips came back today with a lot of green: AMD, AMAT etc
Day One at JPMorgan Healthcare Conference started off with a rally for an hour or two until traders took profits.And without help from NASDAQ momentum biotech stocks sold off.We had a few winners among our SMID focus stocks; CYRX up 4.89%, GERN up 18% to $2.95, PACB up 12.65% to $9.46,VCYT up 2.89%.to $23.06.The XBI was down 2.27% to $81.27. Details and any news to follow at end of week summary.. There is too much noise on a daily level.
Regeneron (REGN) stock took a 7.69% hit as Eylea sales were $1.5B under consensus of $1.64B on a preliminary update.Update 1/10 as stock starts to recover:
We will revise our healthcare model portfolio at the end of the week.Tomorrow we will hear from Abbott Laboratories (ABT) which we added to our focus list last week at the $110 level it should be a core MedTech and Diagnostics portfolio holding. The ABT dividend is 1.82% and analyst rating is a 2.
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Lilly and Abbvie also present at J.P.Morgan tomorrow.Our update from October.
Long ABT and REGN.