|April 10, 2014|
|10:36 EDT||IBB||iShares Nasdaq Biotechnology Index slides after relief rally fades|
The ETF is down nearly 3% at time of writing to $228.15. At that price there is a zone of support which could become a downside area to test from $227.24 to $220.65. Resistance is at $231.58.
News For IBB From The Last 14 Days
|October 2, 2015|
|08:30 EDT||IBB||iShare Trust NASDAQ Biotech Index Fund volatility elevated on price movement|
iShare Trust NASDAQ Biotech Index Fund October weekly call option implied volatility is at 47, October is at 42, November is a 41; compared to its 52-week range of 22 to 52, suggesting larger near term price movement.
|October 1, 2015|
|09:48 EDT||IBB||iShares Nasdaq Biotechnology Index underperforms broader averages|
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|08:33 EDT||IBB||After massive selloff, large biotechs seen leading sector back|
The biotech sector has been among the worst performing groups during the recent stock market volaility, due to broader macroeconomic concerns as well as sector-specific worries about pushback on drug price increases. However, analysts at JPMorgan and Piper Jaffray issued notes defending a leader in the space, Celgene (CELG), and argued that growth in the sector will continue and cannot be ignored by investors for much longer. BUY CELGENE: JPMorgan analyst Cory Kasimov upgraded Celgene to Overweight citing an "increasingly attractive" valuation following the recent pullback in shares. The company is one the "most fundamentally sound biotechs" and shares at current levels are "too compelling to remain on the sidelines," Kasimov tells investors in a research note. The analyst said that not only does Celgene have an "impressive" proprietary pipeline, but he is also confident in the company's ability to identify potentially first-in-class and best-in-class products to partner on or acquire to continue its growth. Kasimov keeps a $152 price target for the stock. HIGH-GROWTH: Piper Jaffray analyst Joshua Schimmer says recent weakness in the biopharma sector has created a "valuation discrepancy" versus non-growth, non-biopharma stocks that he hasn't seen for a number of years. The sector remains in a "prolonged growth cycle" driven by extended product cycles, attractive and improving pipelines and M&A opportunities, Schimmer told investors in a research note titled "Out of The Ashes, A Growth Sector Poised To Fly Higher." The analyst, who expects large-cap biopharma companies to lift the sector out of the recent weakness, listed Celgene, Alexion (ALXN), Amgen (AMGN) and Endo (ENDP) as his preferred growth names. PRICE ACTION: Celgene shares are down more than 8% over the past month, though the stock closed yesterday up $2.79 to $108.13. During September, Alexion declined 9%, Amgen dropped 9%, Endo fell 10% and the iShares NASDAQ Biotechnology Index ETF (IBB) slid more than 11%.
|September 30, 2015|
|10:38 EDT||IBB||iShares Nasdaq Biotechnology Index leads on the upside|
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|06:48 EDT||IBB||iShare Trust NASDAQ Biotech Index Fund volatility pulls back from 52-week high|
iShare Trust NASDAQ Biotech Index Fund October weekly call option implied volatility is at 61, October is at 52, November is a 43; compared to its 52-week range of 22 to 52, suggesting larger near term price movement after presidential candidate Hilary Clinton announced plans last week to cap prescription drug prices.
|September 29, 2015|
|11:07 EDT||IBB||iShare Trust NASDAQ Biotech Index Fund volatility up after seven-day sell off|
iShare Trust NASDAQ Biotech Index Fund October weekly call option implied volatility is at 73, October is at 58, November is a 50; compared to its 52-week range of 22 to 52, suggesting larger near term price movement after presidential candidate Hilary Clinton announced plans last week to cap prescription drug prices.
|10:32 EDT||IBB||iShare Trust NASDAQ Biotech Index Fund volatility up on wide price movement |
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|10:11 EDT||IBB||iShares Nasdaq Biotechnology Index snaps back, levels to watch|
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|08:25 EDT||IBB||iShare Trust NASDAQ Biotech Index Fund volatility elevated |
iShare Trust NASDAQ Biotech Index Fund October weekly call option implied volatility is at 79, October is at 61, November is a 50; compared to its 52-week range of 22 to 52, suggesting larger near term price movement after presidential candidate Hilary Clinton announced plans last week to cap prescription drug prices.
|September 28, 2015|
|16:19 EDT||IBB||On The Fly: Top stock stories for Monday|
Stocks on Wall Street were sharply lower as investors continue to worry about the health of China's economy and continue to flee the biotech sector. The iShares NASDAQ Biotechnology Index (IBB) was down 6.33% today and is down about 18.5% since September 21, when Democratic presidential candidate Hillary Clinton pledged to take action against the high prices of specialty drugs. Adding to the tentative mood among investors was noted investor Carl Icahn's preview for a presentation that will be made available on his site tomorrow, entitled "Danger Ahead." The preview includes several cautious comments that the billionaire has publicly made recently regarding his concerns about the high-yield bond market and the stock market. ECONOMIC EVENTS: In the U.S., personal income grew 0.3% in August, versus expectations for it to rise 0.4%. Personal spending rose 0.4% last month, versus expectations for growth of 0.3%. The pending home sales index fell 1.4% in August, missing expectations for it to have risen 0.4%. The Dallas Fed manufacturing outlook survey for September had a reading of -9.5, versus expectations for a reading of -10.0. In China, industrial profits plunged 8.8% in August, adding to the recent string of weak data from the Asian giant. COMPANY NEWS: Apple (AAPL) reported that it set a record by selling more than 13M new iPhone 6s and iPhone 6s Plus models in the first three days after launch of the devices. However, shares of the tech giant slid about 2% to $112.44 following the announcement... Alcoa (AA) shares advanced 52c, or 5.73%, to $9.59 after the company announced that its board has approved a plan to separate into two independent, publicly-traded companies - an Upstream company that will operate under the Alcoa name and a new "Value-Add company" that will provide high-performance, multi-material products whose name will be announced at a later date... Biotech stocks continued recent declines, with Valeant (VRX) dropping 16.6% after a group of Democratic congressmen urged additional scrutiny of the company's "price hike" business model, while Epizyme (EPZM) and NewLink (NLNK) fell a respective 27% and 21% after presenting data at the 2015 European Cancer Congress... Shares of both Energy Transfer Equity (ETE) and Williams (WMB) fell after they announced a combination deal valued at approximately $37.7B, including the assumption of debt and other liabilities. Under the terms of their deal, an affiliate of ETE will acquire Williams at an implied current price of $43.50 per Williams share, the companies said. In late June, Energy Transfer Equity made a proposal to merge with Williams in an all-equity transaction valued at that time at $53.1B, including the assumption of debt and other liabilities. Under that prior merger proposal, ETE would have acquired all of the outstanding common stock of Williams at an implied price of $64 per Williams share, which represented a 32.4% premium to Williams' common share closing price as of June 19. Energy Transfer Equity shares closed down $2.95, or 12.69%, to $20.29 after announcing today's revised deal, while Williams dropped $5.03, or 12.09%, to close at $36.57. MAJOR MOVERS: Among the notable gainers was Republic Airways (RJET), which surged $2.38, or 81.8%, to $5.29 after announcing that the company and Teamsters Local 357 have reached a consensual tentative agreement on the terms of a new three-year contract for the 2,100 Republic pilots represented by the International Brotherhood of Teamsters. Also higher was Media General (MEG), which gained $2.49, or 22.3%, to $13.64 after Nexstar (NXST) proposed a cash-and-stock deal to acquire the company for $14.50 per share, which Media General said it would "carefully review." Additionally, Sanchez Energy (SN) rose 4.5% to $5.57 after agreeing to sell certain Eagle Ford Shale midstream assets to Sanchez Production Partners (SPP) for $345M. Among the noteworthy losers was Huntsman (HUN), which plunged $3.99, or 28.7%, to $9.92 after warning that headwinds would impact its third quarter earnings. Also lower were shares of Depomed (DEPO) and Horizon Pharma (HZNP), falling a respective 22% and 21%, after Depomed continued its criticism of Horizon's hostile takeover bid for the company. INDEXES: The Dow fell 312.78, or 1.92%, to 16,001.89, the Nasdaq lost 142.53, or 3.04%, to 4,543.97, and the S&P 500 dropped 49.57, or 2.57%, to 1,881.77.
|15:04 EDT||IBB||iShare Trust NASDAQ Biotech Index Fund volatility increases|
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|14:38 EDT||IBB||Valeant crashes after Democrats push for subpoena|
Shares of Valeant Pharmaceuticals (VRX) continued their week-long descent on Monday after a group of Democratic congressmen urged additional scrutiny of the company's business model. GOVERNMENT SCRUTINY: Eighteen Democratic congressional representatives requested that the House Oversight Committee subpoena Valeant for information related to allegedly "massive" price increases for two cardiac drugs recently acquired by the company. Referencing recent controversy surrounding Turing Pharmaceuticals, this morning's letter to the committee said "Valeant is using precisely the same business model as Martin Shkreli... whose company recently purchased the life-saving drug Daraprim and increased the price from $13.50 to $750 per pill... Similarly, in February, Valeant purchase the rights to sell Nitropress... and Isuprel... The same day, Valeant increased the prices of these drugs to $805.61 and $1,346.62, respectively, [representing] increases of 212% and 525%." In addition to the subpoena, the congressmen also requested that the committee invite Valeant CEO Mike Pearson to testify along with Martin Shkreli, "since both appear to be engaging in the same business model." Note that today's news follows an August 15 letter to Valeant from Senator and Presidential candidate Bernie Sanders and Rep. Elijah Cummings, who requested similar information related to what they called "artificially inflated" drug prices. Valeant rejected that request, citing confidentiality concerns. CEO RESPONSE: On Monday, Valeant distributed a letter to employees from its Chief Executive Mike Pearson. Responding to what he called "two main issues worrying investors," Pearson claimed "Valeant is well-positioned for strong organic growth, even assuming little to no [drug] price increases... We have consistently pursued profitable growth through diversification, strong execution and financial discipline while minimizing exposure to governmental policy changes and volatility." PRICE ACTION: Shares of Valeant Pharmaceuticals are down more than 15% to trade near $167 this afternoon. The stock has fallen roughly $78 from the $245 per share price it reached intraday on September 21, which is the day when Turing Pharmaceuticals' Daraprim price hike made headlines and prompted Presidential candidate Hillary Clinton to criticize the "outrageous" prices of specialty drugs and lay out a plan to combat the problem. Biotech stocks are broadly lower since that time as well, as the iShares NASDAQ Biotechnology Index (IBB) is down 6% today and down about 19% since September 21.
|13:25 EDT||IBB||iShares Nasdaq Biotechnology Index slide continues, levels to watch|
The ETF was last at $291.60, off the low of the day at $290.06 which is now support. Below that low next support is at $288.11 and then at $284.16. Resistance is at $293.07.
|10:07 EDT||IBB||iShares Nasdaq Biotechnology Index leads on the downside|
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|08:09 EDT||IBB||iShare Trust NASDAQ Biotech Index Fund volatility elevated |
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|05:06 EDT||IBB||Stocks with implied volatility movement; HFC IBB|
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|September 25, 2015|
|16:35 EDT||IBB||Stocks end week lower as biotechs sink, Volkswagen crashes|
Stocks ended the week lower after concerns about drug prices were reignited, sinking biotech stocks, an emissions scandal engulfed Volkswagen (VLKAY), dragging down shares of automakers and their suppliers, and Caterpillar (CAT) announced that it may eliminate as many as 10,000 jobs in the next three years as commodity prices continue to slump. MACRO NEWS: Following the Federal Reserve's decision last week to wait before raising rates, the central bank made a concerted effort to give the market more clarity this week. Over last weekend, three Federal Reserve officials - San Francisco Fed President John Williams, St. Louis Fed President James Bullard and Richmond Fed President Jeffrey Lacker - all argued that an interest-rate increase is still warranted this year. Then, on Thursday night, Fed Chair Janet Yellen said during a speech at UMass Amherst that the central bank remains inclined to hike rates this year. Yellen's remarks were incrementally hawkish, but welcomed by the market, since they helped clarify the message the Fed delivered a week ago... In the U.S., Markit's flash manufacturing purchasing manager's index was flat at 53.0 in September, which was slightly better than the expectation for it to dip to 52.8. Durable goods orders for August declined 2.0%, versus expectations for a drop of 2.3%. When transportation items were removed, the core reading was breakeven, versus expectations for a rise of 0.1%. The third estimate of second quarter GDP showed the economy grew 3.9% quarter-over-quarter, versus expectations for the GDP growth estimate to stay at 3.7%. Personal consumption in Q2 is now believed to have grown 3.6%, up from the prior estimate of 3.1%. The final University of Michigan consumer sentiment reading for September came in at 87.2, which was down from August's 91.9 but above the expected 86.2 reading... The Asian Development Bank cut its growth forecast for the region, citing a weaker outlook for China and India and a delayed recovery in the world's advanced economies. The bank now sees the Chinese economy growing 6.8% this year and 6.7% next year, down from its previous forecasts of 7.2% and 7%, respectively. Markit's flash manufacturing PMI for China fell to 47.0 in September from 47.3 last month. Meanwhile, Japanese Prime Minister Shinzo Abe unveiled new economic targets, including a goal for a 20% increase in the target size of the Japanese economy to 600T yen, though he gave no timeframe for achieving this aspiration... In Europe, Markit's composite PMI for the eurozone came in at 53.9 in the first look for September, down from 54.3 in August and below expectations for a reading of 54.1. COMPANY NEWS: Biotech stocks declined after privately-held Turing Pharmaceuticals made headlines by enacting a 5,000% price increase on its treatment for toxoplasmosis, reigniting a debate around drug prices that previously embroiled costly Hepatitis C drugs including AbbVie's (ABBV) Viekira Pak and Gilead's (GILD) Sovaldi and Harvoni. Presidential candidate Hillary Clinton sent the debate to center stage by criticizing the "outrageous" prices of specialty drugs and laying out a plan to tackle "price gouging" in the specialty drug market. The NASDAQ Biotechnology index fell roughly xxx% for the week amid the attention paid to Turing's drug and Clinton's response... Volkswagen (VLKAY) shares trading in New York fell sharply to begin the week and ended the week far from where they'd been last Friday before the EPA said it found manipulations that violate U.S. environmental standards while testing certain of the automaker's diesel cars. The EPA said Volkswagen may face civil penalties of $37,500 for each vehicle not in compliance with federal clean air rules, which could total as much as $18B, according to Reuters. In the wake of the scandal, Chief Executive Officer Martin Winterkorn resigned, with the company's supervisory board subsequently praising the decision and selecting Matthias Mueller, the former head of Porsche (POAHY), as Winterkorn's successor as the company's new CEO... Caterpillar (CAT) shares dropped after the heavy machinery maker announced plans for job cuts and lowered its revenue guidance for this year and next. Caterpillar said that it would lay off 4,000-5,000 of its employees between now and the end of 2016 and could lay off up to 10,000 employees by 2018. Caterpillar cut its fiscal year 2015 revenue forecast by $1B and said its sees its fiscal year 2016 revenue to be 5% below this year, adding that it expects revenue declines in all three large segments next year... Online and mobile deal provider Groupon (GRPN) said it plans to cut 1,100 jobs relating primarily to the company's international operations... Nike jumped after the athletic gear giant reported better than expected earnings and futures orders, prompting numerous price target hikes and at least one upgrade at Street research firms. Among other companies reporting earnings this week, BlackBerry (BBRY), ConAgra (CAG), Carnival (CCL), and CarMax (KMX) fell immediately following their quarterly reports... Apple (AAPL), which has previously been reported to be working on an electric car via its "Project Titan," is speeding up those efforts and setting 2019 as a target to ship its first vehicle, according to The Wall Street Journal... Against the backdrop of China's President Xi Jinping visiting the U.S., Boeing (BA) announced deals to sell 300 planes to three Chinese companies and set up an aircraft factory in in the Asian nation, while Cisco (CSCO) announced a partnership with Chinese server maker Inspur Group... Lloyd Blankfein, Goldman Sachs (GS) Chairman and CEO, disclosed that he was diagnosed with lymphoma. "Fortunately, my form of lymphoma is highly curable and my doctors' and my own expectation is that I will be cured," Blankfein stated in an open letter that was shared by the bank... GoPro (GPRO) finished the week about xxx% lower after Barron's contended in a feature article last weekend that the company's stock could plunge another 30% to $25 as Apple, Sony (SNE) and others pressure the company's "one-hit wonder" products... On the M&A front, Atmel (ATML) agreed to be acquired by German chipmaker Dialog Semiconductor in a deal valued at roughly $4.6B and Starwood Waypoint (SWAY) announced a stock-for-stock merger agreement with Colony American Homes. INDEXES: The Dow lost about 0.43% to close at 16,314.67, the S&P 500 fell about 1.35% to close at 1,931.34, and the Nasdaq declined about 2.89% to close at 4,686.50.
|16:17 EDT||IBB||On The Fly: Top stock stories for Friday|
Stocks opened with sharp gains the day after Fed Chair Janet Yellen gave some clarity to the market by suggesting the Fed will most likely raise interest rates by the end of the year. During afternoon trading, the news flow slowed and the volume lightened on the buy side, leaving the sellers with the upper hand. The Nasdaq was the first index to move into negative territory, led by broad weakness in biotech stocks, while the Dow was helped to stay in the green by a big post-earnings move higher in Nike (NKE). The averages limped into the close, leaving the market with an interesting set-up to begin next week. Outside of stock news, it was certainly a headline packed day, as Speaker of the House John Boehner announced that he will resign at the end of October, Chinese President Xi Jinping continued his U.S. visit and Pope Francis addressed the United Nations while spending a second day in New York City. ECONOMIC EVENTS: In the U.S., the third estimate of second quarter GDP showed the economy grew 3.9% quarter-over-quarter, versus expectations for the GDP growth estimate to stay at 3.7%. Personal consumption in Q2 is now believed to have grown 3.6%, up from the prior estimate of 3.1%. The final University of Michigan consumer sentiment reading for September came in at 87.2, which was down from August's 91.9 but above the expected 86.2 reading... Federal Reserve Chair Janet Yellen said during a speech at UMass Amherst last night that the central bank remains inclined to hike rates this year. Yellen's remarks were incrementally hawkish, but welcomed by the market, since they helped clarify the message the Fed delivered a week ago. Of note, the Fed chair paused multiple times toward the end of her speech and received medical attention afterward, but returned to her regular schedule later in the evening, with the bank explaining that Yellen was dehydrated after a long day but was otherwise fine. COMPANY NEWS: Nike jumped $10.23, or 8.9%, to $125.02 after Thursday night's report of better than expected earnings and futures orders prompted numerous price target hikes at Street research firms. Additionally, Sterne Agee upgraded Nike to Buy from Neutral, saying it thinks the company is benefiting from its "global grass roots engagement with its customers," which enables it to meet its customers' needs and determine to what extent it can raise prices. The firm, which thinks that the company is continuing to gain share, has a $150 price target on the athletic gear giant... Biotech stocks, which were already having a bad week, ended the week on a down note, as the iShares NASDAQ Biotechnology Index (IBB) fell 4.9%, giving it a weekly decline of about 13%. Among the biggest large-cap losers in the space were Vertex (VRTX), which fell 7%, Regeneron (REGN), which dropped 6% and Celgene (CELG), which slid 4.8%. MAJOR MOVERS: Among the notable gainers was Jabil Circuit (JBL), which advanced $2.38, or 12.2%, to $21.88 after it reported higher than expected earnings and gave guidance for its November quarter that was significantly above expectations. Also higher was Cirrus Logic (CRUS), which gained $3.90, or 14.4%, to $31.03 after tear downs of Apple's (AAPL) iPhone 6S and 6S Plus led analysts to conclude that the chipmaker appears poised to obtain more revenue from the new devices than from the previous generation of the market-leading smartphone. Among the noteworthy losers was Finish Line (FINL), which fell $4.86, or 19.6%, to $19.91 after reporting second quarter revenue that missed expectations and saying it expects adjusted earnings this fiscal year to increase in a low single to mid single digits percentage from last year. Also lower following its earnings report was smartphone and software maker BlackBerry (BBRY), which slid 7.68% to $6.49 after the company posted a second quarter loss that was steeper than analysts expected. BlackBerry also confirmed press reports that it plans to launch a new phone that uses Google's (GOOG) Android operating system instead of its own proprietary BB10 OS. Shares of Aratana Therapeutics (PETX), which dropped $6.81, or 38.97%, to $10.68 after the company said that, based on "mixed clinical and scientific results," it does not believe that canine lymphoma products AT-004 and AT-005 in their current, first-generation forms will capture the desired lymphoma market opportunity. INDEXES: The Dow rose 113.35, or 0.7%, to 16,314.67, the Nasdaq fell 47.98, or 1.01%, to 4,686.50, and the S&P 500 added/slipped 0.90, or 0.05%, to 1,931.34.
|14:32 EDT||IBB||iShares Nasdaq Biotechnology Index falls, bearish pattern completes|
On Monday of this week we noted a potential bearish flag pattern that became active later in the week. The downside objective for the pattern was to the $310 area, close to where the ETF is currently trading. While price could trend lower, with a potential test at the round number of $300, there is a risk that there could be retracement upward following completion of the pattern. Resistance is at the $315 area.
|14:25 EDT||IBB||iShare Trust NASDAQ Biotech Index Fund volatility elevated as shares trend lower|
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