Biotech Leads a Big Bull Charge Ahead of the Weekend
Today's financial recap and tomorrow's financial outlook.
Stocks recovered from Thursday's nasty down draft as biotech staged an impressive rally.
Thursday after the close, Biotech giant Gilead (GILD) reported first-quarter earnings of $2.94 per share, smashing the consensus of $2.32. Revenues were $7.6 billion, 10.2% ahead of expectations.
Gilead CEO John Martin also said the company plans on making acquisitions.
The stock rose 4.5%, helping drive the NASDAQ Biotechnology ETF (IBB) up 3.1%. That made biotech the best-performing sector by a long shot.
Last night, Tesla (TSLA) unveiled its "Powerwall" battery system at its Hawthorne, California plant. The stock initially moved up on the news, but traders took profits and it closed flat. However, the stock had risen over 20% off its March low.
Social media stocks suffered today, courtesy of an 18..6% drop in sector leader LinkedIn (LNKD). The company cut its full-year earnings guidance to $1.90 per share from $2.95 due to the strong dollar and challenges in Europe. Peers like Twitter (TWTR), which reported disappointing earnings report and guidance on Tuesday, also felt the heat, and the Global X Social Media Index ETF (SOCL) fell 1.4%.
Small caps also underperformed, with the Russell 2000 rising 0.7%.
The S&P 500 closed at 2108.24, up 1.1%. The NASDAQ Composite retook the 5,000 level with a 1.3% gain.
Economic data was mostly disappointing today.
Construction Spending, Markit US Manufacturing PMI, ISM Manufacturing and Prices Paid, and University of Michigan Sentiment numbers were all below economists' expectations. This continues the recent trend of generally disappointing US economic data, and the Bloomberg Economic Surprise Index is back down at levels not seen since the 2008-2009 financial crisis.
Nonetheless, US Treasury Yields rose, extending the recent rally off the mid-April low. The US dollar also rose against the yen and euro.
The Baker Hughes US Rig Count fell to 905 this week, down from 932 last week as energy companies continue to reduce drilling activity.
Crude oil finished down fractionally.
Monday's Financial Outlook
The US economic calendar is pretty light. The ISM New York report will be released at 9:45 a.m. ET, followed by Factory Orders at 10:00 a.m ET.
Major names reporting earnings include Comcast (CMCSA), Tyson Foods (TSN), Anadarko Petroleum (APC), DaVita (DVA), Ingram Micro (IM), and Tenet Healthcare (THC).
Traders will also be watching for news out of Greece ahead of IMF payment deadlines, which are on May 6 and 12.
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