At close 2/11: Another crappy day now with Ukraine Crisis coming to fore. But some large cap biopharmas get green: BMY. GILD, REGN up 3.27%, and PFE.
Nibbled on NeuroCrine (NBIX) at $85.
Update-3 2/11 12p EST…Small caps fight the headwinds but “hold the fort” in early trading. FED officials push back on Bullard. March 16 FED Meeting. 10 Year at 2.063%.
- IWM holds small gains at $203.89. XBI up 0.71% at $95. ARKG up 0.53% at $49+.
- NAZ and S&P with small losses
- Energy, financials and aero/defense sector leaders.
Update-2 2/10 The prospect of a more hawkish FED and some “piling on” by FED Governor James Bullard killed a nascent small cap rally in biotech stocks as well as tech stocks. The S&P 500 lost 1.81% and the NAZ lost 2.1% in the sell-off. The XBI was beginning a nice recovery towards $100 but took a 3% hit today to $94.36. Even the IBB lost 2.44% to $131.80.
The CPI soared 7.5% in January.
Momentum traders beware when one FED Governor can talk the market down.
Update-1 2/9 10a. Broad Rally carries small cap biotechs with XBI up 2.95% to $95 handle. ARKG up 3.87%. Risk rules!
- Big movers from trading list below: Madrigal (MDGL), ChemoCentryx (CCXI), Teledoc (TDOC), PacBio (PACB), Veracyte (VCYT), CRSPR Therapeutics (CRSP).
- Large cap biotechs lag:AMGN GSK PFE REGN
- Mid-caps green screen
- QQQ up 1%, IBB up 1.33%.
Biotech Fades Despite AMGN Earnings.
The nascent rally in small cap biotechs faded today despite good earnings by Amgen. AMGN stock soared almost 8% today on a beat and updated guidance with projected revenues of about $26B and non -GAAP EPS of $17-18. The stock is up over 7% YTD but only 1.4% over one year trailing most large cap biopharmas but beating the IBB down 24% over one year. Amgen will buy back 6M shares to support bullish outlook but product sales fell in 2021. Although debt level is high the Company will pay a 3.47% dividend. A lot of financial engineering? Analyst rating average is a 2.5 hold.
Pfizer earnings were weak on sales with weak guidance on vaccines the stock fell 2.84% despite an EPS beat. Vaccine and Paxlovid antiviral revenues projected at $54 M in 2022. But keep in mind PFE stock is up 48.48% over one year. Dividend is 3.09%.
Most other large cap biopharmas were down slightly except ABBV, BIIB and GSK all up a tad.
Small Cap Biotch Fades with XBI Down 0.33% to $93
The NASDAQ was up 1.28% and the Russell 2000 was up 1.63% so we should have had better upsides in small cap biotech.
Here are some recent small cap biotech stock trades we mentioned in a FEB 6 post. Winners today among small caps we track were:
BCRX CYTK, EVH, MDGL, MGTX.
CCXI, CRSP, CYRX, PACB,TDOC,VCYT.
DISCLOSURE: Long BCRX CCXI CRSP CYRX EVH MDGL MGDX PFE VCYT.