Commenting on Eli Lilly’s antibody treatment being halted and today’s trading, Gorilla Trades strategist Ken Berman said:
Eli Lilly's Antibody Treatment Halted
The major indices are mixed and flat at midday following a choppy and nervous morning session on Wall Street. The financial sector was in focus with regards to earrings for the second day in a row this morning and today’s reports were much weaker than yesterday’s ones. Bank of America (BAC, -4.1%) missed on its top line, while Wells Fargo (WFC, -5.0%) reported bearish earnings, with only Goldman Sachs (GS, +0.3%) posting reassuring numbers. We also got another worrisome COVID-related report, as similarly to Johnson & Johnson's (JNJ, -0.1%) vaccine trial, the clinical trials of Eli Lilly's (LLY, -0.3%) antibody treatment were halted as well, due to safety concerns, which put pressure on the hardest-hit industries in early trading.
Jim Chanos has a new short target in his sights. Earlier this week, the hedge fund manager disclosed that he is betting against "legacy" data centers that face growing competition from the trio of technology giants, which have previously been their biggest customers. The fund manager, who is best known for his winning bet against Read More
Despite the gloomy headlines and the still large number of new infections, the large-cap benchmarks continue to trade near their recent one-month highs and just a tad below their recovery highs. In economic news, the Producer Price Index (PPI) and the core PPI both came in at 0.4%, well above the consensus estimates, easing the fears of deflation and a slowing economic recovery. The worse-than-expected Eurozone industrial production highlighted the overnight session, but global risk assets remained stable following yesterday's broad selloff.
Dow: 28,646, - 34 or 0.1%
S&P 500: 3,511 - 1 or 0.03%
Nasdaq: 11,868, + 4 or 0.04%
Russell 2000: 1,639, + 3 or 0.2%
Market breadth has been in line with the performance of the major indices this morning, with advancing issues outnumbering decliners by a less than 3-to-2 ratio on the NYSE at midday. Only 11 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 130 stocks hit new 52-week highs. The major indices have been hovering around their daily VWAPs (Volume-Weighted Average Price) for throughout the morning session, pointing to a mixed and choppy afternoon intraday. Yesterday's trends reversed at the level of the key sectors, as cyclical issues bounced back, with the exception of financials, while consumer-related and tech stocks pulled back, meaning that directionless trading could continue. Stay tuned!