August 14, 2014

Biotech is the Best Buy in This Market

From InvestorPlace

Biotech is the Best Buy in This Market
Bargain hunters should focus on biotechs since momentum is clearly on their side

By Sam Collins, InvestorPlace Chief Technical Analyst  |  Aug 14, 2014

On Wednesday, stocks closed higher, led by the small- and mid-cap sectors. The Nasdaq led all other indices, up 1%, while the S&P 500 rose 0.7% with 7 of 10 sectors advancing, and the Dow industrials gained 0.6%.

Retail sales for July were flat, but rather than this being interpreted as a negative, it was seen as a positive. With the economy posting mild growth and interest rates low, the Federal Reserve isn’t likely to jump ahead of the slow economy with an increase in interest rates.

Stocks have recently been impacted by conflict in Ukraine and the Middle East, but this week has been relatively calm.

Retail stocks were hard hit following poor results from Macy’s (M), which was off 5.5%.

Most of Wednesday’s gains were made in technology, with Apple (AAPL), Facebook (FB) and Google (GOOG) leading the group, and health care, which was led by biotech stocks.

At the close, the Dow Jones Industrial Average rose 91 points to 16,651, the S&P 500 gained 13 points at 1,947, the Nasdaq jumped 45 points to 4,434, and the Russell 2000 gained 9 points at 1,142. Volume was very light on the NYSE’s primary market with just 550 million shares trading. The NYSE traded total volume of 2.7 billion shares, and the Nasdaq crossed 1.6 billion shares. Advancers outpaced decliners on both exchanges at 2.9-to-1 on the NYSE and 2-to-1 on the Nasdaq.

08 14 14 ibb 300x182 Biotech is the Best Buy in This Market


Read more from InvestorPlace >>


No comments:

Post a Comment