S&P Hits a Record High, but the Biotech Blues Sets In
Today's financial recap and tomorrow's financial outlook.
The biotech sector was in prime focus today. The iShares Nasdaq Biotechnology ETF (NASDAQ:IBB), which rose 65% in 2013 and as much as 21% in 2014, fell 4.7%. The sell-off was prompted by Congressional criticism of Gilead's (NASDAQ:GILD) pricing practices, which weighed on sentiment across the board.
We also saw weakness in housing, large-cap technology, and social media, while Treasury yields fell, indicating some sense of a flight to safety.
On the plus side, financials outperformed for the second day in a row, and we saw some positive action in emerging markets, notably China. The iShares China Large-Cap ETF (NYSEARCA:FXI) rose .29% for the day on expectations of more stimulus activity from the People's Bank of China.
Incidentally, Citigroup (NYSE:C) issued a research report this morning showing record outflows in China-focused ETFs and mutual funds, indicating sentiment may have been leaning a bit too negative.
In all, the equity markets look to be working off some froth as the major indices vacillate around record highs, and while the biotech sell-off is troubling to some, there isn't much panic in the air outside of the most speculative sectors.
Software company Symantec (NASDAQ:SYMC) made the news today, falling 13% after the company announced the surprise termination of CEO Steve Bennett.
Nike (NYSE:NKE) took a 5.1% hit despite delivering solid fiscal third-quarter earnings as investors keyed off the company's disappointing earnings expectations for fiscal 2015.
Elsewhere on the earnings front, shares of both Darden Restaurants (NYSE:DRI) and Tiffany (NYSE:TIF) traded up after their respective reports.
Monday's Financial Outlook
There are no major earnings reports or important US economic data releases scheduled for Monday.
Internationally, we'll see the China HSBC/Markit Flash PMI, and the Germany and Eurozone Purchasing Manager Index numbers.
Traders will also be watching for more general news out of China, particularly related to government stimulus, credit market activity, and/or corporate defaults.
Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter