Market 2018-05-11 (American Patients First? 5G, NVDA, and more)

Market is mixed today, not bad to end the week-long rally.

Treasury yields have little change, TLT +0.25%.

Crude -1.14% to $70.55. Gold -0.23% to $1,319.30, UUP -0.15%

Key points from President Trump's speech detailing his plan to lower U.S. drug prices called American Patients First (lame name though):

Bans pharmacist gag rule against advising patients on pricing.

FDA will accelerate approval process for generics and biosimilars.

Will "fix" price disparity between U.S. and foreign markets (specifics not provided).

Most of the tough talk was directed at the middlemen who negotiate drug costs for insurance companies.

Not including: call for Medicare to negotiate lower prescription drug prices.

XBI +3%, IBB +2.7%, XLV +1.5%, CVS +3.2%, ESRX +2.6%...

Winners

As discussed above, a lot of healthcare sector winners: REGN +6.3%, VRTX +3.3%, ALGN +3.2%, BIIB +3.1% ...

VZ +3% as JPMorgan boosts to Overweight on 5G. T +1.3%, CMCSA +1.1%.

FB +0.8% continue to march north.

Losers

MGM -4.7% regardless the company announced a new $2B buyback plan. WYNN -2.9%, LVS -1.1%.

PM -2.2%. Yesterday FDA warned firms selling vaping liquids in packaging resembling foods for kids. MO -1.5%.

NVDA -2.2% despite ER beats, probably due to lighter GPU pricing. Cryptocurrency demand was stronger-than-expected, which also may cause concerns what if the bubble busts. The company upside guidance, and strength in Gaming/Data center should give investor confidence. GS raises PT to $310, BA raises to $340. AMD -1.5%, SOXX -0.7%.

My Trades Today

Sold LB @ $32.8 (bought @ $30.8 yesterday)

Comments

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