The bulls continue to march towards new highs although the Dow has faded at the halfway point. We finally got some economic news which is being digested as both good and bad.
The Commerce Department said wholesale inventories fell 0.2% in January after falling 1% in December. However, companies’ sales rose 1.3%, the 10th straight gain. Look. We knew companies are returning to the lean and mean days and instead of having an overstock of goods they are simply managing their inventories better. The fact that sales rose is the silver lining in this report. After all, if sales pick up, that would likely force businesses to restock inventories.
As a result, the Dow is down 21 points to 10,543 after trading to a high of 10,601. The S&P 500 is up 2 points to 1,142 while the Nasdaq has climbed another 11 points to 2,351.
Things pick up on Thursday and Friday as we get numbers on the weekly jobless claims, retail sales and consumer sentiment.
One sector that continues to be white-hot is Biotech as new drugs and M&A continue to drive the sector higher.
InterMune (ITMN, $38.36, up $15.06) is up a whopping 65% after a federal advisory panel voted in favor of approval for its experimental lung disease treatment. The March 30 calls (IQY100320C00030000, $8.50, up $6.35) are a sizzling 300%…
Elsewhere, Facet Biotech (FACT, $27.00, up $10.29) is also up over 65% after getting a bid from Abbott Laboratories (ABT, $55.17, up $0.37) for $450 million which equates to $27 a share.
The action is also HOT in our Members Area so let’s get to it. Current subscribers, check for the updates.]]>