Biotech started to look heavy as all get out today. IBB closed 25C cents above its 200 day moving average today and this is a double dip to the level it hit on Nov 23, so it would be in the best interests of the hemoglobins to hold that level tomorrow.
In after market trading BLUE (above) announced big news and the stock is up about 13 points from today’s close. I don’t know if that’s enough to jolt the sector higher, but it could use some help right about now.
Goldman and the White House
Stocks opened nicely higher on the back of a massive jump in crude oil and a financial/bank stock mega surge. Oil jumped over 8% as OPEC officially cut oil production by 1.2 million barrels. Financial stocks jumped because interest rates popped but more importantly President-Elect Donald Trump is considering the president of Goldman Sachs Group ($GS) Gary Kohn for a senior administration job. In addition, Trump also appointed Steven Mnuchin as his treasury secretary, a former Goldman Sachs partner. See a trend here????? Needless to say, investors believe having Wall Street bankers inside the administration is a big plus for the sector. Shares of Goldman Sachs surged 4% on the day.
Sloppy
Even with the massive surge in energy stocks and financial stocks, the market could not hold the gains. This is a signal that there could be trouble ahead in the stock market. With two of the biggest sectors in the market up big, the S&P opened higher, then faded to close negative on the day. The Dow Jones had a slight gain of 2 points, the S&P fell 5 points and the NASDAQ took a beating, collapsing 56 points.
See you in the morning. Things look tired.