The bulls are pushing resistance once again after a number of companies beat earnings expectations which has helped offset weaker-than expected economic data. Although the market has moved slightly below its session highs, the momentum is there for the bulls to close above our price targets.
The Commerce Department said wholesale inventories fell 0.2% to $425.5 billion after increasing 1.9% in October. The suit-and-ties had expected a 1% rise in inventories. Elsewhere, concerns about the European debt crisis have been put on the back burner (again) after Portugal said it would not seek a bailout and Japan indicated it would buy euro zone bonds.
As far as specific stocks, Seattle Genetics (SGEN, $16.62, up $0.80) is getting a pop after its CEO gave an update on one of its cancer drugs and said he expects fast-track approval from the FDA this quarter. Additionally, the company said it also received an $8 million fee from Pfizer (PFE, $18.30, up $0.04) for rights to use its cancer-fighting antibody-drug technology.
Seattle Genetics could also receive more than $200 million in milestone and royalty payments for any products that stem from the agreement with Pfizer which will be responsible for developing and selling the products.
We covered both companies recently in our Weekly Wrap but we favor Seattle Genetics more than Pfizer. Although Pfizer pays a nice juicy dividend of 4.4%, we think shares of Seattle Genetics break $20 before Pfizer does.
As we head to press, the Dow is up 53 points to 11,690; the S&P is higher by 6 points to 1,276 while the Nasdaq is higher by 12 points to 2,720. We will be back Wednesday morning with a full update. Subscribers, check for the HOT updates inside the Members Area.