{"id":5515,"date":"2016-09-12T16:18:47","date_gmt":"2016-09-12T20:18:47","guid":{"rendered":"http:\/\/www.thet3trader.com\/?p=5515"},"modified":"2016-09-12T16:18:47","modified_gmt":"2016-09-12T20:18:47","slug":"t3s-take-3-biotech-fed-chatter-rescues-crying-bulls","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2016\/09\/12\/t3s-take-3-biotech-fed-chatter-rescues-crying-bulls\/","title":{"rendered":"T3’s Take 3: Biotech, Fed Chatter Rescues Crying Bulls"},"content":{"rendered":"

1)\u00a0Bulls Fight Back<\/strong><\/p>\n

The S&P 500<\/strong> fell -0.4% to 2119.12 in the early going, which had traders worrying that we'd see a repeat of Friday's horrendous action.<\/p>\n

We also saw early weakness in overseas equities, crude oil, bonds, and gold.<\/p>\n

However, traders very quickly bought the dip, and the S&P finished up 1.5% at 2159.04.<\/p>\n

This was the first 1% up day in the S&P 500 since July 8.<\/p>\n

And since Friday was the first -1% down day since June 27, perhaps we are seeing a real return to volatility after 2 months of near-zero movement.<\/p>\n

2) Biotech Saves the Day<\/strong><\/p>\n

The first clue that the bull was ready to fight back was the early rebound in biotech<\/strong> (IBB), which was supported by 3 pieces of favorable news.<\/p>\n

First,\u00a0Horizon Pharma<\/strong> (HZNP) announced it is buying Raptor Pharmaceutical<\/strong> (RPTP)\u00a0for $800 million.<\/p>\n

Gilead<\/strong> (GILD) CEO John Milligan also said at an investment conference that the company planned on making regular acquisitions.<\/p>\n

And finally, Presidential candidate Hillary Clinton fell ill at a 9\/11 Memorial Service in New York.<\/p>\n

Since she is viewed as anti-biotech, anything that hurts her chances of becoming President helps the sector.<\/p>\n

The Nasdaq Biotech Index<\/strong> (IBB) rose 3.0% to $287.11 today.<\/p>\n

3)\u00a0Fed Schmed<\/strong><\/p>\n

This afternoon, Lael Brainard, a voting member of the Federal Open Market Market Committee, gave a highly-anticipated speech in Chicago.<\/p>\n

Brainard's speech leaned dovish, making a case for leaving rates as-is.<\/p>\n

Considering that Brainard is considered to be one of more dovish members of the Fed, this was not a major surprise.<\/p>\n

However, her speech had a big impact on markets: the US dollar fell, while gold and stocks ripped higher.<\/p>\n

Traders are also now pricing in a mere 22% of a September rate hike, down from 32% a week ago.<\/p>\n

Throughout August, traders loved hawkish Fed chatter.<\/p>\n

It looks like that's flipped around now.<\/p>\n

Tuesday's Trading Calendar<\/strong><\/span><\/p>\n

US Economics (Time Zone: EDT)<\/strong><\/p>\n

06:00 NFIB Small Business Optimism (Aug): exp. 94.8 , prior 94.6
\n14:00 Monthly Budget Statement (Aug): exp. -$107.0b , prior -$64.4b<\/p>\n

Global Economics<\/strong><\/p>\n

03:15 CHF PPI m\/m
\n04:30 GBP CPI y\/y
\n05:00 EUR ECB Pres. Draghi Speaks
\n05:00 EUR German ZEW Economic Sentiment
\n18:45 NZD Current Account<\/p>\n

Earnings<\/strong><\/p>\n

Before Open:<\/p>\n

None of Significance<\/strong><\/p>\n

After Close:<\/p>\n

None of Significance<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

1)\u00a0Bulls Fight Back The S&P 500 fell -0.4% to 2119.12 in the early going, which had traders worrying that we’d see a repeat of Friday’s horrendous action. We also saw early weakness in overseas equities, crude oil, bonds, and gold. However, traders very quickly bought the dip, and the S&P finished up 1.5% at 2159.04. This was the first 1% up day in the S&P 500 since July 8. And since Friday was the first -1% down day since June 27, perhaps we are seeing a real return to volatility after 2 months of near-zero movement. 2) Biotech Saves the Day The first clue that the bull was ready to fight back was the early rebound in biotech (IBB), which was supported by 3 pieces of favorable news. First,\u00a0Horizon Pharma (HZNP) announced it is buying Raptor Pharmaceutical (RPTP)\u00a0for $800 million. Gilead (GILD) CEO John Milligan also said at an investment conference that the company planned on making regular acquisitions. And finally, Presidential candidate Hillary Clinton fell ill at a 9\/11 Memorial Service in New York. Since she is viewed as anti-biotech, anything that hurts her chances of becoming President helps the sector. The Nasdaq Biotech Index (IBB) rose 3.0% to $287.11 today. 3)\u00a0Fed Schmed This afternoon, Lael Brainard, a voting member of the Federal Open Market Market Committee, gave a highly-anticipated speech in Chicago. Brainard’s speech leaned dovish, making a case for leaving rates as-is. Considering that Brainard is considered to be one of more dovish members of the Fed, this was not a major surprise. However, her speech had a big impact on markets: the US dollar fell, while gold and stocks ripped higher. Traders are also now pricing in a mere 22% of a September rate hike, down from 32% a week ago. Throughout August, traders loved hawkish Fed chatter. It looks like that’s flipped around now. Tuesday’s Trading Calendar US Economics (Time Zone: EDT) 06:00 NFIB Small Business Optimism (Aug): exp. 94.8 , prior 94.6 14:00 Monthly Budget Statement (Aug): exp. -$107.0b , prior -$64.4b Global Economics 03:15 CHF PPI m\/m 04:30 GBP CPI y\/y 05:00 EUR ECB Pres. Draghi Speaks 05:00 EUR German ZEW Economic Sentiment 18:45 NZD Current Account Earnings Before Open: None of Significance After Close: None of Significance<\/p>\n","protected":false},"author":6,"featured_media":4096,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,1],"tags":[266,36,189,147,92,107],"class_list":["post-5515","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-uncategorized","tag-brainard","tag-daily-recap","tag-daily-recap-article","tag-economics","tag-fed","tag-take-3"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/5515","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=5515"}],"version-history":[{"count":0,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/5515\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/4096"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=5515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=5515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=5515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}