Actionable news
0
All posts from Actionable news
Actionable news in IBB: iShares NASDAQ Biotechnology Index Fund,

Biotech surges 5.99% in best day since '09

U.S. stocks closed higher Wednesday, led by gains in health care and energy, after the release of the Fed meeting minutes.

Buying accelerated into the close, with the Dow Jones industrial average ending about 112 points higher with Chevron and Pfizer contributing the most to gains.

The Nasdaq composite outperformed, rising 1.59 percent to its highest close of 2016 as Amazon.com jumped 2.7 percent and Apple rose 1.05 percent. The iShares Nasdaq Biotechnology ETF (IBB) surged 5.99 percent for its best day since March 12, 2009. ( Tweet This )

With trade volume nearly triple its 30-day average, the ETF edged higher in the hour or so after the 4 p.m., ET, market close, when IBB showed a 5.96 percent gain that would have been its best day since Aug. 9, 2011. The ETF is still 15.5 percent lower year-to-date.

"It's a melt-up of a very oversold sector," said Jeremy Klein, chief market strategist at FBN Securities, noting a combination of short-covering and speculation supporting gains in biotech stocks.

"You got an all-clear on the minutes. Crude has had a monster day. You had a couple days of selling and the trend is still upward," he said.

Health care jumped 2.65 percent and energy closed up 2.1 percent, helping the S&P 500 gain 1.05 percent.

"Health care and energy both up, leading the S&P. That's something that hasn't happened in a long, long time," said Marc Chaikin, CEO of Chaikin Analytics.

The major averages temporarily pared gains after the Federal Open Market Committee March meeting minutes showed several policymakers expressed caution over April hike, while some said an April hike might be warranted.

Many participants indicated "heightened global risks and the asymmetric ability of monetary policy to respond to them warranted caution in making adjustments to the stance of U.S. monetary policy," the minutes said.

"The way I look at the Fed minutes is, I'm almost tempted to discount the Fed minutes in light of (Fed Chair Janet) Yellen's comments last week," Tom Siomades, head of Hartford Funds Investment Consulting, said, noting the Fed chair showed "more leadership."

"I think the market is just having a knee-jerk reaction when in reality there is a whole lot that has gone on since these minutes that has...


More