The market continued its losing ways, as stocks extended their losses late in the day. We've been saying that we were expecting the market to be weak this summer, and thus far that is playing out as the economic data has been lackluster. However, at this point we still think this is a small pause, and we're continuing to look for a fall rally. As such, we think it could be a good time to start accumulating shares of favorite stocks later this summer. However, we're expecting more downside in the near term first.
The Drug Distributor Stocks Index was the top performing tickerspy Index on the day, led by AmerisourceBergen (NYSE:ABC - News) with a 0% gain. The Chinese IT Stocks Index was the day's worst performing tickerspy Index, with China Information Technology (Nasdaq: CNIT - News) down -15%.
Stocks fell on the day, with the Dow off -61 points to 12,090. The S&P dropped -14 points to 1,286, while the Nasdaq tumbled -30 points to 2,703. Oil slipped -$1.21 to $99.01 a barrel, while gold rose $4.80 to $1,547.20 an ounce.
In stock-specific news, shares of biotech firm Exelixis (Nasdaq: EXEL - News) plunged -20.2% after the company reported trial data over the weekend that indicated its experimental cancer drug cabozantinib caused six patient deaths in clinical trials. The deaths represented 1% of the treated group. Cabozantinib is an oral drug that limits blood supply to tumors and blocks two segments of a pathway used by cancer cells to grow and spread.
Shares of medical diagnostics maker Gen-Probe (Nasdaq: GPRO - News) slid -12.7% after The Wall Street Journal reported that Novartis (NYSE: NVS - News) might be the only company remaining that is interested in acquiring it. Gen-Probe shares had risen sharply after the company put itself up for sale, and partner Novartis was believed to want to keep the company out of the hands of competitors. With no other bidders, however, Novartis' interest might wane. Six pros counted Gen-Probe among their top holdings at the end of Q1 and nearly 50 tickerspy members own the stock in their portfolios.
Shares of motorcycle maker Harley Davidson (NYSE: HOG - News) jumped 2.8% after UBS said May sales for the Wisconsin-based company rose 10% on a year-over-year basis, and that it expects double-digit sales growth in June as well. The firm's analysts gave the stock a short-term "buy" rating and a $39 price target, but maintained a longer-term "neutral" rating on the stock. Eleven pros counted Harley Davidson among their top holdings at the end of Q1 and nearly 340 tickerspy members own the stock in their portfolios.
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