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Biotech Stocks Are Having a STRONG JULY
The biotech rally gained momentum in JULY with rotation out of technology stocks.
Small cap rally coincident with biotech strength helped by potential Fed rate cut soon.
MedTech remains a lagging sector as well as providers (IHF) but UNH is coming back.
So apparently the market believes that lower interest rates are good for biotech stocks. And this is big week for economic data with Powell speaking on Monday. Economists are predicting a cut in rates this week or in September with a 100% probability. It’s big week for large cap earnings and they should be good. For starters the turnaround for Bristol Myers (BMY) up 11% to $12.2B and GAAP EPS of $0.83. NOn-GAAP guidance was raised. In early morning trading the stock is up 0.43% at the $50 handle. Bristol Myers is one of the companies targeted by Congress with the Inflation Reduction Act (IRA) so it appears to be manageable.But medical device stocks are under fire with Abbott (ABT) n eerily looking like the interminable JNJ talc debacle though not in scope.Most of the large caps are at 2024 highs but with many analysts concerned about a weaker economy investors may see them defensive play with less volatility. So look for SMID cap biotechs to continue the rally with M&A always having “wild card ” potential.So its a big 2 weeks of data with weaker seasonality for the market ahead.Some Takeaways from the JULY BIOTECH Rally
Even the laggard IBB has come back strong in JULY up 9.14% YTD with 7.5% MTD.
Biotech stocks are running with the small caps note the IWM is up 12% MTD.
MEDTECH still lags among Healthcare sectors with the IHI flat YTD up only 0.78.%; ABT is still down 4.39% YTD.
The best large cap biopharma performers YTD are: LLY, REGN, VRTX, ABBV – all outperformed the S&P up 14.7% YTD.
Best performance for month to date: UNH, BMY, PFE, GILD and JNJ all laggards.
SMID caps continue to rally XBI up 10% MTD and ARKG up 14.65% YTD.
Biotech Fund are making strong comeback: FBIOX up 10.9% MTD and JNGLX up 14% YTD.
Life Science stocks are outperforming IT and technology for the first time MTD.QQQ down 3.62 MTD.
LONG: Large cap biopharma, ABT, UNH, FBIOX, PRHSX, FSMEX, XBI.
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2020 |
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2020 |
2020 |
2021 |
2022 |
2023 |
2024 |
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5 yr % |
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| Stock/ETF |
Ticker |
Price |
Wgt |
Price |
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Price |
Price |
Price |
P |
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Tot Ret |
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10/25 |
% |
12/31 |
% Perf |
12/31/21 |
12/31/22 |
11/11 |
7/28 |
%Perf |
% |
% |
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P |
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YTD |
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MTD |
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| iShares NAZ Bio |
IBB |
136 |
10 |
151.5 |
25.7 |
152.62 |
130.55 |
115.53 |
148.26 |
9.14 |
40.77 |
7.5 |
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| iShares Russell 2k |
IWM |
163 |
10 |
196.4 |
18.3 |
222.45 |
174.36 |
175 |
224.22 |
11.71 |
42.63 |
12.09 |
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| Merck* |
MRK |
80 |
10 |
81.77 |
-10 |
76.64 |
115 |
101.39 |
125.26 |
14.9 |
61.21 |
-4.75 |
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| United Health |
UNH |
330 |
15 |
350.7 |
27.19 |
502 |
530.27 |
541.21 |
569.72 |
8.22 |
125.24 |
17.7 |
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| SPDR S&P Bio |
XBI |
117 |
10 |
140.8 |
48 |
111.96 |
83 |
66.95 |
101.54 |
13.72 |
18.55 |
10.14 |
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| Healthcare SPDR |
XLV |
108 |
25 |
113.4 |
14.71 |
140.89 |
135.88 |
126.27 |
149.96 |
9.66 |
62.88 |
2.64 |
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| T.Rowe Hlth Sci |
PRHSX |
n/a |
5 |
99.65 |
n/a |
104 |
89 |
83.41 |
97.86 |
11.33 |
24.84 |
3.1 |
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| iShares U.S MedT |
IHI |
50 |
10 |
54.83 |
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65.85 |
52.57 |
45.75 |
54.39 |
0.78 |
31.61 |
-2.49 |
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| MedTech* |
ABT |
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5 |
123.5 |
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127.46 |
109.83 |
94 |
105.24 |
-4.39 |
19.93 |
0.34 |
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| Diversfied MED |
JNJ |
new |
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160.64 |
2.49 |
22.88 |
9.41 |
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| Tracking Comp |
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| ARK Genomic |
ARKG |
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93.26 |
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61.24 |
28.23 |
24.1 |
27.23 |
-17.01 |
-21.53 |
14.65 |
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| Direx3X Bull |
LABU |
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7.66 |
2.74 |
146.16 |
19.83 |
-84.11 |
30.69 |
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| FIDO Biotech |
FBIOX |
** |
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25.18 |
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19.35 |
16.04 |
14.39 |
21.32 |
19.57 |
7.03 |
10.93 |
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| FiDO MEDtech |
FSMEX |
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76.15 |
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83.18 |
60.04 |
51.64 |
62.66 |
1.13 |
9.58 |
-0.56 |
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| JanusHendLifeSc |
JNGLX |
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78.84 |
14.05 |
35.07 |
3.3 |
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| DOW |
DIA |
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310 |
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363.32 |
331.34 |
343 |
405.97 |
7.72 |
49.33 |
3.76 |
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| S&P 500 |
SPY |
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379 |
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475 |
382.41 |
440 |
544.44 |
14.54 |
80.27 |
-0.2 |
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| NASDAQ-100 |
QQQ |
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315 |
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397.85 |
266.33 |
378.39 |
462.97 |
13.05 |
137.07 |
-3.62 |
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| Technology SPDR |
XLK |
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128.93 |
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161.97 |
124.44 |
179.52 |
216.28 |
12.36 |
161.87 |
(4..40) |
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| Top Biopharmas |
* |
e |
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2022 |
11/11 |
7/28?24 |
%YTD |
5 yr % total |
1 mo. |
trend |
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| Abbvie |
ABBV |
* |
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161.64 |
138.59 |
185.26 |
19.48 |
173.26 |
8.19 |
u |
| Amgen |
AMGN |
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334.85 |
7.94 |
16.26 |
7.04 |
u |
| Astra Zeneca |
AZN |
* |
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68 |
63.17 |
78.13 |
-1.2 |
79.57 |
-1.2 |
– |
| Bristol Myers Sq |
BMY |
* |
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71.05 |
50.61 |
50.45 |
-1.68 |
11.2 |
18.71 |
u |
| Gilead Sci |
GILD |
* |
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85.39 |
75.92 |
77.01 |
-4.94 |
15.08 |
11.11 |
u |
| Eli Lilly |
LLY |
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447.71 |
597.71 |
804.62 |
38.03 |
643 |
-10.72 |
d |
| Merck |
MRK |
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110.95 |
101.39 |
125.26 |
14.9 |
61.21 |
-4.75 |
d |
| Pfizer |
PFE |
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51.24 |
29.48 |
30.77 |
6.88 |
-24.73 |
12.22 |
u |
| Regeneron |
REGN |
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725 |
798.94 |
1078.63 |
22.81 |
248.87 |
0.89 |
– |
| Vertex |
VRTX |
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288.78 |
373.65 |
495.26 |
21.72 |
196.87 |
4.49 |
u |
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More By This Author:Biotech Bull Market Is Intact But SMIDs Are Too Volatile
Biotechnology Stocks Showed Nice Gains For The Week-Look For The Momentum To Continue
Healthcare Stocks Continue To Lag The Market-Can Anything Help ?
