U.S. indexes are pointed lower this morning, as traders await comments from Fed Chair Janet Yellen -- which many expect will underscore expectations for a rate hike this month, especially in light of today's positive ADP report. Among the equities in focus are social media giant Facebook Inc (NASDAQ:FB), Internet interest Yahoo! Inc. (NASDAQ:YHOO), and drugmaker Zafgen Inc (NASDAQ:ZFGN).
ZFGN is headed for a sharp 58% plunge from its Tuesday close of $15.93, which will mean a new all-time low. The drop comes as the drugmaker reported a second death in an ongoing trial of a treatment for a rare genetic disorder that is linked to obesity. After Zafgen Inc reported the first patient death in October, the U.S. Food and Drug Administration (FDA) placed a partial hold on the study, while the shares dropped to an all-time low of $9.53. ZFGN is now working with the FDA to determine what steps to take next. Meanwhile, five of the six brokerages following the stock -- which has shed nearly half its value year-to-date -- maintain a "buy" rating or better. Any downgrades could exacerbate selling pressure.
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