STTG Market Recap August 25, 2014

The S&P 500 hit the much commented 2000 level mid day Monday but fell back a tiny bit in the afternoon.  This is only a psychological number but humans are attracted to those big round numbers.   As we mentioned Friday a tiny pullback in the indexes worked off a very extreme short term oversold condition and that led to an immediate round of buying today.  So the bull market has certainly resumed this past 7-8 sessions.  The S&P 500 gained 0.48% and the NASDAQ 0.42%.   Monday’s economic reports included data from the Commerce Department, which showed sales of new single-family homes falling for a second consecutive month in July.

Indexes are so strong right now, no one wants to be old fashioned and wait for the 10 day moving average to catch up.

spx nasdaq

The biotech sector was a big mover today as there was a large acquisition announcement – InterMune (ITMN) shares surged after it agreed to be acquired by Roche Holding AG for $8.3 billion in cash.

itmn

This helped lift the entire sector which has been a workhorse for the NASDAQ for much of the past 3 years.

ibb

Gilead Sciences (GILD) – a stock we have mentioned countless times the past few years – continues an amazing run.  This is an $160B+ market cap company so quite amazing to see such large companies surge like that.

gild

Financials were also strong as markets begin to price in more central bank easing in Europe due to Mario Draghi’s comments Friday at Jackson Hole.  Morgan Stanley (MS) is an example of a big mover today.

ms

Did you know – the S&P 500 hit 1000 back in 1998.  Here are the best and worst performing S&P components in those 16 years.  Gilead (and Celgene) are actually 2 of the top 5.

 

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