Assume Risk Off in Biotech-Wait for Completion of Earnings Cycle
- Large cap performance in 2026 has been lackluster: REGN down 7.5% today, PPH down 4.23% YTD.
- A Red Screen Day is developing in SMID biotech: XBI down 6.2% past five days but up 5.54% YTD, IBB down 2.23% YTD, down 5.4% WTD.
- Positive trend is small caps and the Russell 2000(WM) up 9.39% YTD and trades with the XBI .
The market is focused on two themes :The WAR and the price of oil which is slowly disrupting the economy, and AI with $ Billions of investor inflows boosting TECHNOLOGY stocks with the XLK up 10.4% YTD. We have been tracking market sectors in 2026 and the healthcare sector has been underperforming the XLV down 7.75% YTD. In 2026 the leading sectors are: Energy, Materials , industrials and Technology.
To make the situation worse the MEDtech sector is the worse with the IHI down over 3% today at low near $50! The FSMEX is down 28.83% YTD.
Reporting tomorrow:AMGN BMY LLY MRK and others.
updated at 615p PDT:
Abbvie (ABBV beats Q1 estimates with a 12.4% sales increase and an EPS up 7.7% at $2.65. Global immunology sales were $7.29B up 16.4% with Skyrizy and Rinvoq;Neuroscience portfolio sales were $2.875B up 26%.
In particular, revenue from Skyrizi—AbbVie’s biologic for plaque psoriasis, psoriatic arthritis, Crohn’s disease, and ulcerative colitis—grew 31% year over year to $4.5 billion. While the drug faces new competition from JNJ’s oral pill Icotyde, AbbVie expressed confidence in Skyrizi’s durability.
LONG ABBV and at $204 an excellent entry point. Stock was up 3.2% on heavy volume.