Tag - Bmy

Small-cap stocks pushed higher Friday in a miraculous recovery from a dreadful start. Investors embraced talk that the White House would find a way to funnel money into empty automaker coffers after Senate Republicans squashed a proposed aid package Thursday night. Tech stocks, real estate investment trusts, homebuilder and construction materials shares helped lift the Russell 2000 (NYSE:IWM) to a higher close, with the index closing up 17.22, or 3.82%, at 468.43. For the year, the Russell is now down 39%, while the Dow is off 35% and the S&P 500 is down 40%.

Today’s action started out under tremendous stress, with stock futures reeling overnight after Senate leaders rejected a $14 billion bailout bill for automakers. In addition, the commodities run that powered recent upside action looked tired, financial shares were still soft and news of a massive $50 billion investor fraud was in the mix. The market was poised for a 4% drop on the open, and who knows just how ugly things might have gotten … but that’s when the White House made it clear that they would throw a lifeline to drowning automakers. If the Senate wouldn’t approve a bridge loan to automakers without micromanaging their businesses and carving more concessions out of the union, then the Bush Administration would try to keep car makers afloat for a few weeks while the politics got sorted out. Turns out, it was a lifeline that rescued the stock market from what looked like a very troubling day. That said, General Motors Corp. (NYSE:GM) stock still slipped 4.3% today, while Ford Motor Co. (NYSE:F) was up 4.8%.

Technology shares were a clear source of strength today for the market, with big-time firms like Apple Inc. (Nasdaq:AAPL), up 3.4% and Intel Corp. (Nasdaq:INTC), up 5.2% setting the tone for a strong day in the tech arena.

The big event today was supposed to be the monthly retail sales report, which would most likely remind all of us just how bad spending is as we finish up the holiday season. As it turned out, the retail sales report was just as bad as predicted — which actually means it was good news. If you’re keeping tabs, the headline retail sales figure came in at minus 1.8%, right in line with the forecast. But the . . .

Small caps opened mostly flat, as Fed Chairman Bernanke, Treasury Secretary Paulson, and SEC Chairman Cox testify before Congress on the $700 billion mortgage bailout plan and the recent market turmoil.

At 10:10 a.m. ET the Russell 2000 (NYSE:IWM) was up 12.43, or 0.20%, to 721.87.

Fed Chairman Bernanke, Treasury Secretary Paulson and SEC Chairman's Cox all began testifying before the Senate Banking Committee at 9:30 a.m. ET. The market remains skittish and skeptical, as the administration’s officials paint the details of the plan and what dire consequences could result should Congress opt not to pass the bailout. In a prepared statement for the panel Bernanke said, “If financial conditions fail to improve for a protracted period, the implications for the broader economy could be quite adverse.”

The plan, in which the government would take ownership of all toxic mortgages from affected banks’ balance sheets, effectively rids banks of the poison that has thwarted their operation and enables them to begin shoring up their financial positions to begin lending again. Recent reception has been hostile by certain members of congress. The two most contentious areas include limiting executive compensation and amending the bankruptcy law to allow judges to change the terms of the toxic mortgages. One area of agreement is broader congressional oversight and taking equity stakes in firms which partake in the rescue efforts.

Today will be a day of waiting and listening. Some investors are concerned the plan could get hung up in Congress’ halls, while others remain curious about many of the plan’s details.

In its latest efforts to further shore up ailing banks, the Fed loosened the rules surrounding the ability of buyout shops and private investors to take stakes in them. This is a testament to the level of apprehension regulators have about banks’ liquidity positions.

Overseas, China’s market jumped a hefty 7.8%, as regulators took . . .

Small-cap stocks mounted a valiant comeback push after sinking 1% shortly after the opening, as tech stocks pushed higher, Chicago PMI beat the forecast and merger deals helped offset gloom tied to terrible weekly unemployment claims. At 10:00 a.m. ET, the Russell 2000 (NYSE:IWM) was down 3.25, or 0.45%, at 715.62. The tech-laden Nasdaq 100 was up 0.3%.

The weekly claims number came in at 448,000, far beyond the median forecast of 395,000, and a big jump from last week’s 404,000 number. How bad was this number? It was the single largest weekly claims figure in more than five years. Even though this survey was taken after the numbers were collected for Friday’s monthly employment release, it certainly won’t raise investor confidence about the labor market ahead of that release. It also will call into question some of the rise powered by Wednesday’s ADP employment report. The claims numbers were boosted by an emergency unemployment program, but even allowing for some data quirks, it’s a sobering report that does not paint a rosy picture of the labor market right now.

Most people came in to today’s session expecting the GDP report to claim top billing on the data slate, but economic growth was clearly upstaged by the weekly unemployment report. As for GDP, it was also a disappointment, as the headline figure came in at 1.9%, below the forecast of 2.0%. In addition, fourth quarter GDP was revised downward to minus 0.2%, the first decline in quarterly GDP since 2001.

Before the numbers came out, the stock market was higher in overnight trading, but the claims report sparked an abrupt 11-handle slide in S&P 500 futures, and triggered a big slide in the U.S. dollar and in Treasury yields. The yield on the benchmark 10-year note was down more than 2% into the stock market open, which suggested money flow away from equities toward safe-haven products. The dollar was down more than 100 basis points against the euro, slipping 0.7% after the . . .

Small-cap stocks are expected to open lower, pulled down by a stunning jump in weekly unemployment claims, which jolted investors a day ahead of the monthly employment release. The Russell 2000 (NYSE:IWM) was up about 0.3% before the claims number was released, but now is expected to open down 0.5%, which suggests an open near 715.00.

The weekly claims figure shot to 448,000, which was way above the forecast of 395,000. In fact, it was the largest weekly claims figure in more than five years. The immediate response to the number was a rise in Treasury products, a slide in the U.S. dollar and a whopping 11-handle decline in S&P 500 futures.

At the same time that the weekly claims figure came out, the GDP report also was released. The headline number for GDP came in at 1.9%, which was below the forecast of 2.2%. While GDP also was a disappointment, the fury behind the slide in stocks and the dollar was clearly fueled by the weekly claims shocker.

Crude oil prices stalled overnight, and were down about $0.60 a barrel near $126 heading toward the U.S. open. Energy prices shot $4 dollars a barrel higher Wednesday afternoon on a surprising drop in gasoline stocks seen on the weekly storage data, but that move appears to have lost momentum early today.

There is a potpourri of big-name stocks in the news this morning, with some 40 of the S&P 500 slated to release earnings today. In the financial arena Prudential Financial Inc. (NYSE:PRU) rallied some 5% overnight as losses from subprime . . .

Small caps edged down during the first 15 minutes of trading, but have climbed in midday trading after an overnight drop in crude oil and rising retail stocks encouraged buyers. Although they are now increasing, small-cap stocks fluctuated during the first hour of trading as Wall Street digested newly released unemployment data and the government’s estimate of first-quarter economic growth.

At 12:42 p.m. ET, the Russell 2000 (NYSE:IWM) was up 10.92, or 1.48%, at 749.38. The small-cap index initially met resistance at the 743 notch, but broke through during the third hour of Thursday’s session.

In economic news, the Labor Department said jobless claims came in at 372,000, above the forecasted 370,000 claims and last week’s figure was revised upward by 3,000 to 368,000. Also, this morning, the Commerce Department said its reading of the first-quarter GDP was for a rise of 0.9%, beating the department’s earlier estimate of 0.6%.

“The bottom line is that economic growth remained very weak at the beginning of the year. These data are ancient history, as Q2 is nearly two-thirds over,” Steven Wood, chief economist with Insight Economics, said in an email. “Data released so far for April and May suggest that Q2 growth will also be very soft and perhaps even negative. There is still a definite risk for an outright contraction in Q2.”

Crude oil prices declined overnight and continued to push lower to $128.68 a barrel in midday action. Lower crude prices could offset sell-offs related to disappointing economic reports, soaring prices at the gas pump and grocery store, declining home values and tepid consumer spending.

The U.S. dollar gained on the euro at $1.5505 per euro compared with Wednesday’s close of $1.5645 per euro. The greenback also gained ground on the yen. Federal Reserve Chairman Ben Bernanke speaks later this afternoon. Bernanke is slated to talk about “liquidity provisions” at 2:30 p.m. ET.

“What happens if the U.S. dollar actually sustains a rally and oil comes off? Won't there be less demand for [government] intervention and less demand to buy US Treasury securities?” Andy Busch, global foreign exchange strategist for BMO Capital Markets, wrote in an email. “If bills held outside the Fed and foreign central banks have doubled since the end of summer 2007 and artificially kept U.S. rates low, then what happens if this demand either slows or drops dramatically?  U.S. rates soar and the US dollar gains ground which further fuels higher rates.  While I realize it's hard to imagine a positive scenario for a U.S. dollar rally, maybe a negative scenario fits everyone's mind frame better.”

Kosan Biosciences Inc. (Nasdaq:KOSN) said this morning that it will be acquired by biopharmaceutical goliath Bristol-Myers Squibb Co. (NYSE:BMY), sending shares skyrocketing in morning trading.

Bristol-Myers will pay $190 million or $5.50 per share in cash for the cancer therapeutics company; representing a 233% premium over Kosan’s closing price of $1.65 Wednesday.

Bristol-Myers said its acquisition of Kosan will enhance its pipeline with compounds in two important classes of anticancer agents: novel Hsp90 inhibitors and epothilones.

Shares surged 230%, or $3.79, to $5.44 in morning trading. For detailed price information and recent news stories about Kosan Biosciences, click KOSN. 

Small-cap stocks closed out the week with a meager advance Friday, bucking the red ink seen in the Dow and S&P 500, which is a supportive sign for stocks in general as small caps tend to lead the way for equities — especially in recent years on the way up. The Russell 2000 (NYSE:IWM) rose 0.50, or 0.07%, to 720.05. For the week, small-cap shares were down 0.78%, which seems pretty tame in the face of renewed fretting about the credit crunch crisis and the highest crude oil prices in the history of the planet.

Crude oil futures shot above $126 dollars a barrel Friday, and have now soared about 11% since the beginning of May amid supply jitters out of Africa, geopolitical tension in the Middle East and tightening stocks of distillates. Not to mention a feeding frenzy from the bulls and a panic scramble by the shorts. With national pump prices already north of $3.50 a gallon, this week’s surge in crude oil prices will be a bitter pill for many Americans, already squeezed by rising food costs and sinking home equity. The ballyhooed economic stimulus package may lose some impact as the funds simply go to pay off consumer debt and fill the gas tank, not to “fuel” economic growth. Some airline carriers have announced fuel surcharges in recent days, and Northwest Airlines (NYSE:NWA) and Air Canada joined that chorus today.

The market came into Friday’s session on the defensive amid renewed concern about the credit crisis after American International Group (NYSE:AIG) reported larger-than-expected quarterly losses. AIG tumbled about 8% for the day, and was . . .

Shares of Repligen Corp. (Nasdaq:RGEN) rocketed in pre-market trading after the biopharmaceutical company said that it settled a patent infringement lawsuit with Bristol-Myers Squibb Co. (NYSE:BMY) over Bristol-Myers’ sale of Orencia for the treatment of rheumatoid arthritis.

Shares spiked 30.9%, or $1.74, to $7.20 in pre-market trading. For detailed price information and recent news stories about Repligen, click RGEN.

The Russell 2000 had another oddly quiet, rangebound session Monday, but again stalled on the 720 area, setting up that point as important short-term resistance. The index dipped 1.05, or 0.15%, to 712.68. Today, key resistance lurks at the aforementioned 720, then again near 725 and 731. Meanwhile, support is pegged at 705.50, then at 700 and 694.

The release this afternoon of the FOMC minutes could serve up some volatility.  Normally, the minutes alone wouldn’t justify expectations for a big stock market move, but the release takes on a little more significance this week because the data slate is tame.

After a spate of food, drug and product safety recalls from China has left the nation's reputation in tatters among trading partners, one might think all the negative publicity would have shaken confidence in the country's pharma industry. It hasn't.

To allay Western concerns, Beijing, which wants a healthy pharmaceutical industry, has pledged $1.2 billion to clean up its food and drug safety problems. China's State Food and Drug Administration, which has a regulatory system similar to the U.S. Food and Drug Administration, is being reformed to improve safety standards and crack down on corrupt practices and drug counterfeiters (the Chinese media has reported the agency has yanked hundreds of manufacturing licenses and stepped up facility inspections).

Lower costs, top scientific talent and access to one of the world's largest and fastest-growing markets for prescription drugs have led every Big Pharma company—including Pfizer Inc. (NYSE: PFE), GlaxoSmithKline (NYSE: GSK), Bristol-Myers Squibb Co. (NYSE: BMY), Sanofi-Aventis (NYSE: SNY), Britain's AstraZeneca (NYSE: AZN) and Switzerland's Novartis (NYSE: NVS)—to set up shop in China.

But international heavyweights aren't the only ones vying to tap China's rich drug market. In one niche in the bio-drug sector, a local player dominates rivals. 3SBio Inc. (Nasdaq: SSRX), a leading producer of high-quality, low-cost biopharmaceuticals, has cornered the market in China for the biologic drug Epoetin, known as Epo, which is used to treat anemia associated with chemotherapy and kidney dialysis by increasing production of red blood cells.

Similar to Amgen Inc.'s (Nasdaq: AMGN) wildly popular Eopgen, 3SBio's flagship Epo product, sold under the brand name Epiao, makes up 37% of the Chinese market in product sales. (Amgen's product, distributed in China under the name Espo, has 15% market share; Swiss pharmaceutical company Roche's Epo drug, Recormon, has 10%.) Epogen sales, which are growing 30% annually, account for about 70% of 3SBio's total revenue.

Tpiao, 3SBio's second best-selling product, is used to treat platelet deficiency, a side effect of chemotherapy treatment. Since its January 2006 launch, the drug has sold unchallenged with no known competition in China. Analyst Kimberly Lee of Pacific Growth Equities estimates the drug will rake in $4.8 million in fiscal 2007 and could see sales grow in the neighborhood of $29 million in five years.

Known on Wall Street as Big Pharma, multibillion-dollar companies such as Pfizer Inc. (NYSE: PFE), Merck & Co., Inc. (NYSE: MRK) and Bristol-Myers Squibb Company (NYSE: BMY) dominate the prescription drug market. But a compelling argument can be made for investing in the biotechnology sector, since biotechs have consistently outperformed the pill companies for the past few years.

While Amgen Inc. (Nasdaq: AMGN) and Genentech Inc. (NYSE: DNA), biotech's biggest names, have fallen on hard times (Amgen's stock has plunged 26% from its January high while Genentech's shares are off 14%), some smaller biotech companies hold promise., some smaller biotech companies hold promise.

One such micro-cap is Antares Pharma, Inc. (AMEX: AIS), a $90 million specialized pharmaceutical company with patented drug delivery platforms including Advanced Transdermal Delivery gels (medications—hormones or other active ingredients—that are applied to the surface of the skin in gel form), reusable needle-free injection systems, disposable mini-needle injection systems and fast-melt oral tablets. In the face of direct competitive pressures from companies developing transdermal gels such as NexMed, Inc. (Nasdaq: NEXM), Bentley Pharmaceuticals, Inc. (NYSE: BNT) and Novavax, Inc. (Nasdaq: NVAX), and players like Bioject Medical Technologies Inc. (Nasdaq: BJCT), which produces needle-free injection systems, Antares has flourished.