Here’s your Investing Action Plan for Thursday: what you need to know as an investor for the coming day.
XAutoplay: On | OffExpect a few economic reports worth watching, including ADP’s private-sector employment figures and Challenger’s job-cut report. Those precede the June jobs report from the Labor Department, due out Friday. Plus, look for the ISM nonmanufacturing index for June and the U.S. Census Bureau’s international trade balance for May.
Biotechs, Drug Stocks In Or Near Buy Range
A number of drug and biotech stocks are hovering around the buy zone.
After breaking out from a flat base with a 100.50 entry on June 6, Bluebird Bio shares quickly shot up out of range and into profit-taking zone before easing. The stock rose as high as 107.75 intraday but closed down 0.1% at 105.15 in Wednesday stock market trading, just within the 5% chase zone (105.42).
Celgene shares are still in buy territory after clearing a 127.74 entry from a flat base on June 21. Celgene rose 2.3% to 133.20 on Wednesday.
Also in buy range is iShares Nasdaq Biotech (IBB) ETF, which broke out from a flat base from a 303.84 buy point on June 20. The iShares Nasdaq Biotech ETF, commonly known by its IBB ticker, rose 1.4% on Wednesday.
Novartis (NVS), a member of IBD’s Medical-Ethical Drugs group, is still in a buy zone after climbing out of a nearly yearlong cup-with-handle base with a 82.04 entry. But after soaring as high as 86.90 on June 22, shares have pulled back. The stock fell 0.5% to 83.14 on Wednesday after being downgraded to underperform by Credit Suisse, hitting an intraday low of 82.06.
Exelixis (EXEL) rose as high as 25.44 intraday, closing up 0.9% to 24.97, just above a 24.95 cup-base buy point. Exelixis had topped that entry four times previously in in the last couple of weeks, but this is the first time it has closed above that level.
As for those closing in on a buy point: Shares of Jazz Pharmaceuticals (JAZZ) are edging closer to buy range as they build a flat base with a 163.85 entry. Jazz dipped 0.7% to 155.75. Amgen (AMGN) is forming the handle of a cup-with-handle base as it looks to bypass a 175.55 entry. Amgen rose 0.8% to 174.26.
The ADP Employment Survey will be released at 8:15 a.m. ET. Economists expect ADP to show an increase of 180,000 after May’s reported 253,000. In May, ADP was far off what the Labor Department reported (a 147,000 gain in private jobs and 138,000 in overall nonfarm payrolls).
The ISM nonmanufacturing index is due out at 10 a.m. ET. Economists expect a reading of 56.5, just down from May’s 56.9 but still signaling solid growth.
The Energy Information Administration will release weekly U.S. petroleum stockpile and production data at 11 a.m. ET.