CVS Health Corporation (CVS) could close a recent bear gap after pulling back to historically bullish trendline Stocks traded choppily Thursday after opening lower, as market participants nervously eyed rising coronavirus cases in major regions throughout the country. Meanwhile, a report showed new weekly unemployment insurance claims were worse than expected last week, with the level down just slightly from the The Swiss central bank releases its latest financial stability report
– Credit quality in Switzerland and abroad is expected to deteriorate
– Worse-than-expected developments would weigh further on banks’ profitability
There isn’t anything too relevant here and nothing that tees up a significant shift in policy stance ahead of their announcement later. The full report above can be found .
By Justin Low Downing Strategic Micro-Cap Investment Trust Plc LEI Code: 213800QMYPUW4POFFX69 Net Asset Value The Company announces: Total Assets (including… Biogen (BIIB) news for Thursday concerning a lost court ruling surrounding its multiple sclerosis drug has BIIB stock taking a beating.
The shares of CVS Health Corp (NYSE:CVS) are struggling to recover from the bear gap they suffered late last week, with pressure at the $66 region thwarting several attempts. While the stock is now consolidating just below here, its 320-day is providing solid support. Plus, this pullback has brought CVS within a historically bullish trendline, indicating the stock could be due for a short-term surge.
According to data from Schaeffer’s Senior Quantitative Analyst Rocky White, CVS just came within one standard deviation of its 40-day moving average. Within the past three years, four similar signals have occurred, with the equity higher one month later each time, averaging a 21-day gain of 8.66%. At CVS’s current perch of $64.05, a similar move would put it at $69.60, closing the aforementioned early June bear gap.
Calls haven’t been more popular in the past 12 months. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CVS sports a 50-day call/put volume ratio of 3.89, which sits higher than all other readings from the last year. Plus, the stock’s a Schaeffer’s open interest ratio (SOIR) of 0.58 sits in the low 16th percentile of its annual range, echoing this call-bias.
Some of this bullish behavior could be short sellers hedging against any upside risk, however. In the last two reporting periods, short interest rose 35.1% to 1.90 million shares.
No matter the stance, options look like a prudent play when weighing CVS’s next move. The stock’s Schaeffer’s Volatility Index (SVI) of 35% stands higher than just 18% of all other annual readings. This means that options players are pricing in relatively low volatility expectations at the moment.
Author: by Laura McCandless
Stock market news live updates: Stocks trade choppily as investors eye virus cases, jobless claims
Stocks closed mixed Thursday, as market participants nervously eyed rising coronavirus cases in major regions throughout the country. Meanwhile, a report showed new weekly unemployment insurance claims were worse than expected last week, with the level down just slightly from the prior week.
[Click here to read what’s moving markets heading into Friday, June 19]
The S&P 500 and Dow snapped a three-day winning streak by market close Wednesday, with concerns over a jump in coronavirus cases in some major states contributing to declines. However, big tech shares continued to climb and added to their run of outperformance, despite increasing scrutiny from regulators in the U.S. and Europe.
Travel and leisure stocks including airlines and cruise lines were mixed with increases in new coronavirus cases threatening a smooth reopening process. Cruise giant Carnival reported on Thursday a $4.4 billion second-quarter loss, and said it is unable to predict when it would be able to return to operations.
California on Thursday reported its largest one-day increase in Covid-19 cases yet, with these rising by 4,084. Similarly, new coronavirus cases in Florida rose by a one-day record for the state at more than 3,200, and Texas’s hospitalization rate rose. Other states including Arizona, Nevada and Oregon also saw spikes in cases, as regions struggled to keep infection rates down with reopenings under way.
Meanwhile, New York City – one of the regions that had been under stay in place orders the longest – signaled it would press ahead with the next phase of its reopening process next week, allowing for outdoor dining and salons to open their doors as the statewide daily infection and death rates fell below 1%.
With virtually every U.S. state now in the process of allowing businesses to reopen, new economic data has begun to reflect a recovery from April’s lows. Wednesday’s batch of economic data showed a strong rebound in the housing market, with mortgage applications for home purchases at a more than 11-year high as of last week. New-home building and building permits for the month of May also rose over April, albeit at a slower pace than consensus economists had expected.
Here were the main moves in markets as of 4:04 p.m. ET:
S&P 500 (^GSPC): +1.86 (+0.06%) to 3,115.35
Dow (^DJI): -39.51 (-0.15%) to 26,080.10
Nasdaq (^IXIC): +32.52 (+0.33%) to 9,943.05
Crude (CL=F): +$0.88 (+2.32%) to $38.84 a barrel
Gold (GC=F): -$3.20 (-0.18%) to $1,732.40 per ounce
10-year Treasury (^TNX): -3.9 bps to yield 0.6940%
The S&P 500 and Dow fell in afternoon trading Thursday, as a choppy session rolled on. The Nasdaq Composite held higher, as Tesla, Apple, Amazon and Microsoft rose.
The three major indices erased earlier losses and rose slightly Thursday. Advances in shares of Boeing and Chevron led gains in the Dow. In the S&P 500, the Energy sector outperformed, and the financials and materials sectors also led gains.
Each of the three major indices rose by less than half a percent.
Here were the main moves in markets, as of 9:31 a.m. ET:
S&P 500 (^GSPC): -18.12 points (-0.58%) to 3,095.37
Dow (^DJI): -213.54 points (-0.82%) to 25,906.07
Nasdaq (^IXIC): -4.58 points (-0.05%) to 9,904.90
Crude (CL=F): -$0.02 (-0.02%) to $37.94 a barrel
Gold (GC=F): -$5.80 (-0.33%) to $1,729.80 per ounce
10-year Treasury (^TNX): -3.4 bps to yield 0.699%
Weekly unemployment insurance claims ticked down to 1.508 million for the week ended June 13, the Labor Department said Thursday. This was above consensus expectations for claims to fall to 1.29 million for the week, according to Bloomberg data. The prior week’s new claims were upwardly revised to 1.566 million.
Continuing unemployment claims also fell by a less than expected margin for the week ended June 6. Those ticked down to 20.544 million, from the downwardly revised 20.606 million from the prior week. Consensus economists expected continuing claims to dip below the 20 million mark.
Here were the main moves in markets, as of 7:24 a.m. ET:
S&P 500 futures (ES=F): 3,106.5, down 11.5 points or 0.37%
Dow futures (YM=F): 26,052.00, down 98 points, or 0.37%
Nasdaq futures (NQ=F): 9,987.75, down 6.75 points, or 0.07%
Crude (CL=F): +$0.32 (+0.84%) to $38.28 a barrel
Gold (GC=F): -$4.90 (-0.28%) to $1,730.70 per ounce
10-year Treasury (^TNX): -2.1 bps to yield 0.712%
Here were the main moves at the start of the overnight session for U.S. equity futures, as of 6:05 p.m. ET:
S&P 500 futures (ES=F): 3,113.75, down 4.25 points or 0.14%
Dow futures (YM=F): 26,118.00, down 32 points, or 0.12%
Nasdaq futures (NQ=F): 9,990.75, down 3.75 points, or 0.04%
Traders wearing masks arrive before the opening bell at the New York Stock Exchange (NYSE) on May 26, 2020 on Wall Street in New York City. – Global stock markets climbed Monday, buoyed by the prospect of further easing of coronavirus lockdowns despite sharp increases in case rates in some countries such as Brazil. Over the weekend, US President Donald Trump imposed travel limits on Brazil, now the second worst affected country after the United States, reminding markets that while the coronavirus outlook is better, the crisis is far from over. (Photo by Johannes EISELE / AFP) (Photo by JOHANNES EISELE/AFP via Getty Images)
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SNB: Economic, financial conditions for Swiss banking sector has deteriorated markedly
- Credit quality in Switzerland and abroad is expected to deteriorate
- Worse-than-expected developments would weigh further on banks’ profitability
- Solid capital base puts UBS, Credit Suisse in favourable position to face challenges
- But stock market correction has reduced AUM value
- Uncertainty could lower demand for client, capital market transactions
- But impact on UBS, Credit Suisse likely to be limited due to partial economic recovery in 2H 2020 and stabilisation in financial markets
For bank trade ideas, check out eFX Plus
There isn’t anything too relevant here and nothing that tees up a significant shift in policy stance ahead of their announcement later. The full report above can be found here.
Net Asset Value(s)
Downing Strategic Microcap Investment Trust plc
London, UNITED KINGDOM
Author: Downing Strategic Microcap Investment Trust plc
Biogen News: BIIB Stock Battered 7% by MS Drug Patent Ruling
Biogen (NASDAQ:BIIB) news for Thursday concerning a lost court ruling has BIIB stock taking a beating.
The ruling against Biogen concerns its multiple sclerosis (MS) drug Tecfidera. The battle in court was over the ability for generic drugmaker Mylan (NASDAQ:MYL) to release its own version of the drug. Unfortunately for BIIB stock, a West Virginia court ruled in MYL’s favor.
According to the court’s ruling, Biogen’s patent for Tecfidera is invalid due to “lack of written description.” That opens the way for Mylan, as well as other drug companies, to release their own versions of the MS drug.
That means Biogen will likely see increasing competition from generic rivals. That could cause problems for the company and result in it losing profit. Mylan already has a pending drug application waiting for approval from the U.S. Food and Drug Administration, reports TheStreet.com.
Even without the recent Biogen news, the company was already dealing with issues. For example, Wall Street is expecting revenue for the company to decline in 2020 and 2021. Without any room for growth, BIIB stock was already on a steady decline.
Biogen also suffered due to the novel coronavirus just like any other company. That saw it dip low in March after a rally in February. While the stock started to recover in April, it was already on its way back down partway through the month.
BIIB stock was down 7.6% and MYL stock was up 2.1% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
Author: By William White, InvestorPlace Writer