U.S. stock indexes gripped slender gains midday Thursday, as strength in biotechs offset weakness in chip stocks. Celgene (CELG) was among the leading big-cap biotechs that added gains after a recent breakout.
The Nasdaq composite, S&P 500 and Dow Jones industrial average each rose between 0.1% and 0.2% at 12 p.m. ET. The small cap Russell 2000 added just over 0.2%. Volume in the stock market at midday was running higher on the NYSE and lower on the Nasdaq.
The biotech industry group was on track for a fifth consecutive daily gain. Action within the group was bullish.
Regeneron Pharmaceuticals (REGN) pushed 3% higher. The stock is now 19% above a 453.06 buy point. Celgene headed toward its ninth gain in 10 sessions. The stock added almost 1% midday Thursday after clearing a 127.74 buy point Wednesday. The 5% buy zone is capped at 133.81.
Bioverativ (BIVV) , a February initial public offering and a new member of Leaderboard, slowed to a 0.1% gain after breaking out Monday. The stock remains in the 5% buy zone from a 58.98 buy point.
Bioverativ, Regeneron and Celgene have EPS Ratings of 93, 94 and 98 respectively, which means they are growing earnings faster than 93%, 94% and 98% of the entire IBD database of publicly traded companies. Some biotechs hustling higher in the past few days are still posting annual losses. While investing in a company that is losing money is not prudent, the action points to conviction for the group.
Going into Thursday's market, the biotech group was No. 23 of 197 groups. Three weeks ago, biotechs were No. 45.
Meanwhile, the chip designer, chipmaker and chip equipment maker groups were down moderately.
Oil stocks were rebounding as West Texas intermediate crude oil popped 1.3%. The price of crude oil recently touched 10-month lows.
Blue chips were about evenly split between up for the day and down for the day. Dow Jones industrial average component Wal-Mart Stores (WMT) dropped 1%, while UnitedHealth (UNH) rose about 1.5% ahead of news that the U.S. Senate is set to unveil a new plan to reform the Affordable Care Act.
In the IBD 50, a proxy for leading stocks, medical software provider Medidata Solutions (MDSO) led with a 4.5% thrust. President Trump is working on an executive order to ease regulations on drugmakers, the New York Times reported Tuesday.
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