Dow Jones Industrial Average Reverses; Biotechs Get Blasted

Dow Snaps Streak Ahead of Apple Earnings; Plus, 3 Biotechs That Took It on the Chin

by Alex Eppstein

Published on Apr 27, 2015 at 4:26 PM
Updated on Jun 24, 2020 at 10:16 AM

The Dow Jones Industrial Average (DJIA) spent the morning in the green, but fell into negative territory around midday for its first losing session in four. Meanwhile, the S&P 500 Index (SPX) and Nasdaq Composite (COMP) pulled back from notable technical milestones, pressured by a sector swoon among biotech stocks. Overseas, optimism is running high after Greek Prime Minister Alexis Tsipras announced a major change to the nation's debt-negotiation team -- with day-to-day discussions to be "coordinated" by Deputy Foreign Minister Euclid Tsakalotos, in place of controversial Finance Minister Yanis Varoufakis. Meanwhile traders Stateside are eagerly awaiting tomorrow's start to the Fed's two-day policy-setting meeting.

Continue reading for more on today's market, including:

The Dow Jones Industrial Average (DJIA - 18,037.97) traded on sides of breakeven today, before settling with a 42.2-point, or 0.2%, loss. Eleven of the Dow's 30 components closed higher, led by DuPont's (NYSE:DD) 4.6% jump. McDonald's Corporation (NYSE:MCD) paced the 19 losing blue chips, giving back 2.3%.

The S&P 500 Index (SPX - 2,108.92) reached a record intraday peak of 2,125.92, but closed 8.8 points, or 0.4%, lower. The Nasdaq Composite (COMP - 5,060.25) hit a 15-year intraday high of 5,119.83, but ended on a loss of 31.8 points, or 0.6% -- its first negative session in seven.

The CBOE Volatility Index (VIX - 13.12) jumped 0.8 point, or 6.8%, to close atop its 10-day moving average for the first time since April 17.

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5 Items on Our Radar Today
:

  1. Mylan NV (NASDAQ:MYL) ) rejected a takeover bid from sector peer Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA), saying anything under $100 per share undervalues the company. According to sources, TEVA is responding by taking the proposal directly to MYL's biggest shareholders, in an attempt to win support. (SFGate; Bloomberg)
  2. CMG has removed GMOs from its menu -- a first for a national restaurant chain. "There is a lot of debate about genetically modified foods," CMG co-CEO Steve Ells said in a statement. "Though many countries have already restricted or banned the use of GMO crops, it's clear that a lot of research is still needed before we can truly understand all of the implications of widespread GMO cultivation and consumption. While that debate continues, we decided to move on non-GMO ingredients." (USA Today)
  3. Call buying has been popular on these three stocks, ahead of tomorrow's earnings reports.
  4. Monster Beverage Corp (NASDAQ:MNST) jumped to a record high today, bringing option bulls to the table.
  5. Optimistic speculators blazed a path toward this cloud concern, banking on significant post-earnings upside.
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Commodities
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Crude slipped modestly as high global supply levels overshadowed reports of an escalating conflict in Yemen. Oil for June delivery dipped 16 cents, or 0.3%, to settle at $56.99 per barrel.

Gold futures rallied on a weaker dollar, as well as uncertainty ahead of the Fed's policy announcement this Wednesday. By the close, June-dated futures were up $28.20, or 2.4% -- their biggest single-day percentage gain since Jan. 15 -- to settle at $1,203.20 per ounce (the precious metal's highest close in roughly two weeks).


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