This week has been absolutely horrible for the stock market. Starting on Monday, we started to see things plummet with the worst of it coming Yesterday. The reason for the drop is pretty simple. It’s a two part hit with regard to economic data. Those parts include…
- Interest Rates – While investors seemed happy about the Federal Reserve statement last week, I think that they’re starting to realize that the increase may not be aggressive, but it’s still coming. This means easy money will be leaving the market and investors will be forced to be more strategic when making investments…it can also lead to a pretty decent sell-off.
- Durable Goods Orders – Durable goods orders are a key report that economist pay close attention to. Unfortunately, this report surfaced yesterday; bringing bad news along with it. Apparently, the fall in durable goods orders was much bigger than expected; marking the third time in the past four months we’ve seen declines in this data. So, the big fall we saw in the market yesterday can be directly tied to the poor data.
The Good News
The good news in all of this is that we don’t have to look at this as negative. The reality is that due to economic stimulus, investors were willing to take more risks than they should have; pushing many stocks higher than they should be. So, we can look at this week as a healthy correction as the market will most likely be back to growth next week.
BioTech Stocks To Watch Through The Movement
MannKind Stocks Are Being Pushed To A Prime Buying Opportunity
MannKind Corporation (NASDAQ: MNKD)
MannKind stocks have been on the downtrend for quite some time now. It all started after an unfounded downgrade from Goldman Sachs. Nonetheless, the stock has been on the decline. While many may look at this as a bad thing, it’s important to remember who MannKind is and what they do. This is the company that created the inhaled insulin known as Afrezza. The insulin is known to stabilize blood sugar, and maintain stability for a longer period than normal insulin, but the company can’t quite say that yet as more long term testing is needed before the FDA will approve the statements. Nonetheless, this one is going to take off in the long run; so, buying while it’s cheap will most likely be a great idea! So far today, the stock is a bit shaky, fluttering above and under the break even line. Currently (10:56), MNKD is trading for $5.10 per share after a gain of $0.01 per share.
Gilead Sciences Stocks Are Also At A Great Price For Buyers
Gilead Sciences, Inc. (NASDAQ: GILD)
Gilead Sciences had a tough day in the market yesterday as well. However, Today, it seems as though the stock is recovering a bit so far. Nonetheless, when thinking about whether or not to invest in GILD, it’s important to pay close attention to what they’re doing as a company. As mentioned in previous posts, Gilead Sciences is the world leader in HIV and hepatitis C treatments. Let’s face it, although I’d love to see them go, these are two big ailments that aren’t going anywhere any time soon! So, they will continue to drive strong revenue for Gilead Sciences. Currently (11:27), the stock is trading at $99.97 per share after a small gain of $0.11 per share so far today.
ZIOPHARM Oncology Stocks Are Feeling The Pain
ZIOPHARM Oncology, Inc. (NASDAQ: ZIOP)
After a strong week last week, ZIOP stocks are feeling the pain this week. Unfortunately, the declines are continuing. Currently (11:39), ZIOPHARM Oncology is trading for $10:74 per share after a loss of $0.31 per share so far today. However, I think that a lot of what we’re seeing in bio as a whole are the result of the poor economic information listed above. So, I’m expecting to see a bounce back either late this week or early next.
What Do You Think?
Do you think the stocks mentioned here will bounce back quickly? Let us know in the comments below!