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Biotech Booms on Fat Synageva Deal, Bucks Yellen-Fueled Fears


Today's financial recap and tomorrow's financial outlook.

Federal Reserve Chair Janet Yellen turned the bulls yellow today after she said that stocks valuations are high, and that long-term bond yields could jump when the Fed raises rates.

The comment pushed the S&P 500 down 0.5%, while the ten-year US Treasury yield rose 5.6 bps to 2.21%.

Utility Stocks took a hit from the increase in bond yields, with the the Utilities Select Sector SPDR ETF (XLU) falling 0.55% today.

Despite the broader markets taking a hit, biotech came out in good shape.

The S&P Biotech ETF (XBI) finished up 2.4%, boosted by Alexion Pharmaceuticals' (ALXN) bid for Synageva Biopharma (GEVA).

Due to the massive premium offered, Synageva shares rose 112% today.
Alexion fell 8.0%.

The Nasdaq Biotechnology ETF (IBB) finished up 0.8%.

Additionally, the Russell 2000 managed to hit positive territory with a 0.3% gain.

Crude oil spiked to $62.58 this morning on an unexpected inventory build. However, oil sold off and finished up just 26 cents at $60.66, and energy stocks were down on the day.

Moneygram (MGI) shares spiked 33% intraday on rumors that Western Union (WU) was in early talks to acquire the company. Later, Western Union denied the talks. Nonetheless, Moneygram shares finished 21.4% higher.

Greece was able to make its payment of 224 million euros to the IMF. However, a bigger payment is due next week, and traders remain concerned about a possible "Grexit."

European markets finished slightly higher today.

However, bond yields spiked again, with the 10-year German bund rising 7 basis points to 0.586%. Italian, French, and Spanish yields also rose sharply.

Thursdays Financial Outlook

Tomorrow's economic data will include: Challenger Job Cuts, Continuing Claims, Initial Jobless Claims, EIA Natural Gas Reports, and March's Consumer Credit report.

Overseas Eurozone Markit Retail PMI, German Factory Orders, and Reserve Bank of Australia's statement on monetary policy.

For earnings releases we have Alibaba (BABA), ArcelorMittal (MT), Manulife Financial (MFC), CBS (CBS), Liberty Global (LBTYA), Molina Healthcare (MOH),  and NVIDIA (NVDA).
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