Despite a negative GDP report coming in at -0.3% to begin that start of the recession, stocks actually spent most of the day in the black. The Treasury has finally started paying TARP funds out to large banks, and the second tier banks are next in line. Oil is contained, and an old and haggard looking T. Boone Pickens gave an interview this morning saying he was out of oil but thinks oil will go back to $100.00 next year.
Here are today's closing bell levels: DJIA: 9,180.69 (+2.11%) NASDAQ: 1,698.52 (+2.49) S&P 500: 954.09 (+2.58)
Biogen Idec Inc. (NASDAQ: BIIB) shares were down over 5% at $39.68 right before the close, but that is better than the -1% at one point after yesterday's close. The biotech giant disclosed a US-case of PML that was detected early via MRI in one of its TYSABRI patients.
Cisco (NASDAQ: CSCO) is recently up 28c to $18.15 in pre-open trading. CSCO is expected to report Q1 EPS on November 5. Morgan Stanley lowered its price target to $24 from $29. CSCO November option implied volatility of 74 is above its 26-week average of 38 according to Track Data, suggesting larger price movement.
Biogen Idec (NASDAQ: BIIB) is recently trading down $3.69 to $38.25 in pre-open trading. BIIB & ELN disclosed another confirmed a case of PML in MS patient treated with Tysabri in the U.S.; two others were disclosed on July 31 in Europe. Cowen says: "We believe BIIB shares 25% undervalued relative to the market assuming no contribution from Tysabri." BIIB November option implied volatility of 74 is above its 26-week average of 47 according to Track Data, suggesting larger price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Calyon upgraded major network carriers based on falling oil prices and capacity cuts. The analyst is positive over the next 12 months but cautious short-term given the uncertain economy, and volatile markets and oil prices. AMR Corp (NYSE: AMR) and Delta Air (NYSE: DAL) were upgraded to Add from Neutral and UAL Corp (NASDAQ: UAUA) was raised to Neutral from Reduce.
Ryanair (NASDAQ: RYAAY) was upgraded at Citigroup to Buy from Hold.
Cowen lifted Biogen Idec (NASDAQ: BIIB) to Outperform from Neutral.
JP Morgan upgraded Choice Hotels (NYSE: CHH) to Neutral from Underweight following the better-than-expected Q3 report.
Oppenheimer upgraded shares of Integra LifeSciences (NASDAQ: IART) to Outperform from Perform on valuation, the company's minimal exposure to economic conditions, and expectations for margin improvement and a rebound in organic growth.
Jefferies upgraded shares of Genentech (NYSE: DNA) to Buy from Hold and raised its target to $100 from $95 on increased likelihood of an acquisition after Roche (OTC: RHHBY) reaffirmed commitment to its $100/share offer.
Baird expects Broadcom (NASDAQ: BRCM) to gain market share in 2009 in mobile phones, IPTVs, and digital TVs. Shares were upgraded to Outperform from Neutral.
Keefe Bruyette upgraded shares of Torchmark (NYSE: TMK) to Outperform from Market Perform as they see limited earnings risk and an attractive risk/reward.
Apple (NASDAQ: AAPL) was raised to Buy from Add at Calyon.
Tellabs (NASDAQ: TLAB) was upgraded to Buy from Neutral at UBS and to Hold from Underperform at Jefferies.
JMP Securities upgraded Vertex Pharma (NASDAQ: VRTX) to Outperform from Market Perform following better-than-expected interim data for telaprevir.
Lazard Capital upgraded shares of Biogen Idec (NASDAQ: BIIB) to Buy from Hold on valuation after their physician survey indicated solid sales growth in the company's MS franchise.
Calyon upgraded Data Domain (NASDAQ: DDUP) to Add from Neutral based on positive channel checks and valuation.
Goldman added Buckeye GP (NYSE: BGH) to the Conviction Buy List.
Alcatel-Lucent (NYSE: ALU) was upgraded to Hold from Sell and Ericsson (NASDAQ: ERIC) was raised to Hold from Reduce at WestLB.
Keefe Bruyette upgraded Cowen Group (NASDAQ: COWN) to OUtperform from Market Perform.
Analyst downgrades:
Deutsche Bank downgraded shares of Lloyds TSB Group (NYSE: LYG) to Sell from Hold as they believe loan loss risk will outweigh synergies from the acquisition of HBOS (HBOOY).
Citigroup downgraded shares of National Financial Partners (NYSE: NFP) to Hold from Buy and removed the stock from the Top Picks Live List after the company announced July and August revenues and said pressure continues. The firm lowered their target to $20 from $28.
Shares of Biogen Idec Inc. (NASDAQ: BIIB) plummeted on news that its multiple-sclerosis drug Tysabri was linked to brain infections causing death, leaving 4.3% shareholder Carl Icahn with a hefty paper loss.
But Icahn didn't back down. Having already pushed for one unsuccessful effort to sell the company, and having lost a bid for three seats on the board of directors, Icahn filed a 13-D announcing that he had raised his stake to 6.1%, buying in the wake of the brain infection announcement.
As one of the smarter activist value investors going, Carl Icahn's moves are closely watched by investors looking to piggyback off his ideas.
This morning was starting to feel pretty good despite the 5.7% unemployment rate being the highest in over four years. But then there were comments out of Israel about Iran being suddenly closer to a major break-thru in its nuclear program. You can guess what that did for oil prices, although they didn't go much over $125.00 on the news. Today's action and this week's high volatility show the markets are still fighting over for the pole position.
Biogen (NASDAQ: BIIB) was trading at $54.71 in pre-open trading, below its close of $69.76 Thursda. BIIB and Elan (NYSE: ELN) announced their multiple sclerosis treatment Tysabri, was linked to brain infection. BIIB August option implied volatility was at 42, September at 39; near its 26-week average of 39 according to Track Data, suggesting non-directional price movement.
ELN was trading at $10.78 in pre-open trading, below its close of $20.05. ELN August option implied volatility was at 65, October at 58; below its 26-week average of 70, suggesting decreasing price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
TheStreet.com's Jim Cramer says the biotechs look sweet in a bank-led slowdown.
Thank you, New York Times. Remember just a couple of weeks ago, when The New York Times wrote about how Genentech's (NYSE: DNA) (Cramer's Take) Avastin was too expensive and the stock got cracked down to $77? I know Roche did. I bet that was the last draw. The dramatic decline in the dollar plus a sentiment that has spawned a thousand articles -- that life-saving drugs cost too much -- gave the Swiss giant a chance to bolster its own anemic pipeline by buying what may be the greatest wonder drug of all time in its $43 billion bid, no doubt the beginning price for what will ultimately be a deal close to $100 a share. (I pushed DNA hard here and on "Mad Money" because I have been a huge believer in Avastin and I'm confident that people will pay anything -- or family members will pay anything -- for the hope of three or four months or more of life, or the chance of beating cancer altogether.)
I don't even know where to begin about the positives of this deal. First, it confirms the general trend: the dollar is so weak that it is worth buying anything that's name-brand if you are from Europe, including Anheuser-Busch (NYSE: BUD) (Cramer's Take), a total creature of the weak dollar.
Citi Investment Research maintained its "hold" rating on Biogen Idec (NASDAQ:BIIB) saying the firm "is poised to gain from higher prices for multiple sclerosis drugs," according to the AP.
Merrill Lynch downgraded GM (NYSE:GM) to "underperform" from "buy", according toBriefing.com. Bernstein upgraded Exxon Mobil (NYSE:XOM) to "outperform" from "market perform", the news service also reported.
Douglas A. McIntyre is an editor at 247wallst.com.
Short selling often tells much about what is going on in a sector, particularly when there is a common trend across the major players in that sector.
The end of May short selling can now be accessed from NASDAQ. Interestingly enough, short sellers at the end of May lightened up almost across the board on major NASDAQ biotech stocks from May 15 to May 30:
From the major names, a change in the overall trend can be spotted.
You can see the full short selling report for biotechs at BioHealthinvestor.com to see which other biotechs had an increase in short selling and to also see what the more active biotechs with lower market caps saw in their short selling activity.
The Hershey Co. (NYSE: HSY) is recently up 98 cents to $37.49. HSY has a market cap of $8.4 billion with long term debt of $1.5 billion. HSY call option volume of 12,177 contracts compares to put volume of 1,008 contracts. HSY June option implied volatility of 37 is above its 26-week average of 27 according to Track Data, suggesting larger price movement.
Biogen's (NASDAQ: BIIB) recent volatility has collapsed after Carl Icahn proposed a slate of directors.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Despite today's major markets showing a drop, this would really look like another mixed day on fairly light trading volume as profits fight economic numbers. Oil fell more than $3.00 per barrel and consumer confidence came in at a 5-Year low. Foreclosures also have risen by more than 100% with what now appears to be 1 home per 194 that are in foreclosure. All this is one day ahead of the FOMC meeting with the decision to raise rates, and one day after Warren Buffett called a recession already here. Below are the unofficial closing prices for major US index averages:
DNA and Biogen Idec Inc. (NYSE: BIIB) announced that the phase three EXPLORER study evaluating Rituzan in Systemic Lupus Erythematosus (SLE) failed to meet its primary endpoint.
DNA call option volume of 31,631 contracts compares to put volume of 18,340 contracts. DNA May option implied volatility is at 27 and June is at 30; near its 26-week average according to Track Data, suggesting non-directional price movement.
Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Despite a negative GDP report coming in at -0.3% to begin that start of the recession, stocks actually spent most of the day in the black. The Treasury has finally started paying TARP funds out to large banks, and the second tier banks are next in line. Oil is contained, and an old and haggard looking T. Boone Pickens gave an interview this morning saying he was out of oil but thinks oil will go back to $100.00 next year.
Cisco
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Shares of 
Biogen
The Hershey Co.
Genentech Inc.
Big 3 CEOs drive to Washington to suck up to Congress
GM and Ford ready weak pitches for taxpayer bucks
Cramer on BloggingStocks: A troika of opportunity and trouble 
