Biotech Bellyflop Corrects Itself Today

Biotech Bellyflop Corrects Itself Today (Reuters)

With the Dow Jones slipping 1.6 percent (^DJI), the S&P 500 diving 2 percent (^GSPC) and the Nasdaq sliding 3 percent (^IXIC) yesterday, investors were hoping for better news today to end the skid. They can keep hoping. The slaughter continues, with all three major U.S. indexes underwater again today. But the sector that’s been bleeding the most lately — biotech — is showing some intestinal fortitude, as the Nasdaq biotech index (^NBI) is up more than a percent, as of midday. But who knows how long that will last, or how much lower the major indexes will go if we see — as expected — a string of earnings disappointments for Q114? We could be looking at an extended swoon. Time to keep your powder dry.

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.

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