Here’s what’s behind the plunge in biotech–and in Incyte and Nektar

Here’s what’s behind the plunge in biotech–and in Incyte and Nektar

I’m sure you’ve noticed. As bad as the losses in the general market have been on some recent days–such as yesterday–the punishment meted out to biotech stocks has been worse.Part of that has been the “usual” pattern in a market that is busy selling “risk.” Biotech stocks always get hit hard in such a period. But there’s more, much more going on that’s specific to the sector. And in fact specific to Merck (MRK) and Incyte (INCY), a biotech that’s in my Jubak Picks Portfolio and where I also hold options in my Volatility Portfolio. The key event here for the sector is the April 5 news that Merck and Incyte were pulling the plug on a clinical trial

Caterpillar says this is high water mark for the year–and everybody sells everything

Caterpillar says this is high water mark for the year–and everybody sells everything

Caterpillar (CAT) crystalized the market’s fears in its conference call this morning. After delivering really great results before the market opened–Caterpillar beat Wall Street earnings estimates by 72 cents a share and then raising its guidance for fiscal 2018 to earnings of $10.25 to $11.25, up from prior guidance of $8.25 to $9.25 a share–the shares moved up strongly, climbing by as much as 4.6%. And then came the conference call.

GOOG gets hit by market profit margin fears even after good earnings

GOOG gets hit by market profit margin fears even after good earnings

Some times in the financial markets, the numbers aren’t as important as the narrative. I think that was the case with Alphabet (GOOG) today, Tuesday, April 24. Monday after the market close Alphabet reported first quarter earnings of $9.93. That was a healthy 64 cents a share above the Wall Street consensus estimate for the quarter. Revenue climbed 25.9% two $31.15 billion. That was $870 million above Wall Street projections. Paid clicks on Google properties rose 59% year over year.  But Tuesday the stock sank by 4.45%, dropping $47.47 a share to $1019.98 Why the drop on such good earnings numbers?

Oil continues to move higher on Middle East fears

Oil continues to move higher on Middle East fears

Oil futures in New York settled at their highest since December 2014. U.S. benchmark West Texas Intermediate climbed 0.35% to close at $68.88 a barrel. International benchmark Brent crude rose 0.88% to $74.71 a barrel. The gains were unusual in that the U.S. dollar strengthened today. But the markets had news of another missile attack on Saudi Arabia–again unsuccessful–by Houthi rebels in Yemen. The Houthis are backed by Iran and Yemen has become a proxy war for power in the Middle East between Iran and Saudi Arabia (and by extension, Russia and the United States.)

Does news that U.S. will let Russia’s big aluminum producer avoid sanctions remove this wild card from commodities and stock markets?

Does news that U.S. will let Russia’s big aluminum producer avoid sanctions remove this wild card from commodities and stock markets?

U.S. Treasury Secretary Steve Mnuchin said today that Russian metals giant Rusal, could get sanctions lifted if Putin-connected oligarch Oleg Deripaska relinquished control. The Treasury also gave Rusal a five month extension as it considered Rusal’s appeal of the sanctions. Commodity prices–especially aluminum–fell on the news.

Kinder Morgan raises dividend by 60%

Kinder Morgan raises dividend by 60%

The earnings results for Kinder Morgan's (KMI) first quarter were in line; it's 60% increase in the annual dividend was more aggressive than expected. Adjusted EBITDA (earnings before interest payments, taxes, and depreciation) was $1.90 billion for the quarter,...
Tech wrecks U.S. stock market again today

Tech wrecks U.S. stock market again today

After a week when plunging prices for chip makers made it hard for the U.S. indexes to make much headway, even after earnings beats from companies such as Netflix (NFLX), today the software and advertising technology stocks joined in the rout. That sent the Standard & Poor’s 500 down 0.85% to 2668. Apple (AAPL) continued its role as heavy for the week falling another 4.1%.