Biotech ETFs Jump Again

08/28/2014 7:00 am EST

Focus: ETFS

The four major biotech ETFs jumped high on Monday and had a good follow-through on Tuesday, notes John Burke of Wall Street Sector Selector.

All four major biotech ETFs demonstrated good follow-through on Tuesday, after jumping higher than 2% on Monday.

The biotech sector had another strong session on Tuesday, after beginning the week with a rally. Monday's excitement began when Roche Holding AG made an $8.3 billion takeover bid for InterMune (ITMN), causing ITMN shares to skyrocket 35.41%. The bullishness in the sector sent all four major biotech ETFs more than 2% higher, with two members of the group jumping higher than 3%.

The biotech ETFs demonstrated good follow-through on Tuesday, when the smallest gain was made by the First Trust NYSE ARCA Biotechnology Index ETF (FBT), which climbed 0.99% to $92.04. The iShares Nasdaq Biotechnology Index ETF (IBB) jumped 1.13% to $275.71. The Market Vectors Biotech ETF (BBH) surged 1.06% to $106.40. The SPDR S&P Biotech Index ETF (XBI) soared 2.69% to $162.89.

The 3D printing sector experienced a full spectrum of results on Tuesday. Stratasys (SSYS) surged 0.85% to $115.94. 3D Systems (DDD) climbed 0.78% to $51.44. Voxeljet (VJET) advanced 0.35% to $17.26. 3D bioprinting company, Organovo (ONVO) declined 0.25% to
$7.92. ExOne (XONE) fell 0.83% to $28.66.

Although the solar sector had a generally disappointing session on Tuesday, two members of the group had a good day. Canadian Solar (CSIQ) rose 0.14% to $35.48. SunPower (SPWR) advanced 0.08% to $37.86, crossing back above its 50-day moving average of $37.84. Meanwhile, the Guggenheim Solar ETF (TAN) dipped 0.07% to $44.11. First Solar (FLSR) declined 0.20% to $71.02. SolarCity (SCTY) dropped 1.27% to $70.48.

The beaten-down Real Goods Solar-now known as RGS Energy (RGSE)-continued its journey to Hades on Tuesday, plunging 7.40% to $1.50 after Monday's 2.42% decline. The descent began with Wednesday's release of a dismal second quarter report, which triggered a 17.12% swoon, followed by a 9.78% nosedive on Friday. The company's CEO, Kamyar Mofid was replaced by Dennis Lacey, the President of its Residential Solar Division, after a decision to focus on residential-rather than commercial-installations.

The major ETFs expected to respond to developments in the technology sector are:

  • Technology Select Sector SPDR ETF (XLK): +0.05%
  • Vanguard Information Technology Index ETF (VGT): +0.21%
  • iShares Dow Jones U.S. Technology Sector Index ETF (IYW): +0.09%
  • Market Vectors Semiconductor ETF (SMH): +0.02%
  • iShares PHLX SOXX Semiconductor Sector ETF (SOXX): +0.01%
  • SPDR S&P Semiconductor ETF (XSD): +0.20%

 

The four major biotech ETFs continued to head higher on Tuesday, as the sector attracted more attention from investors in search of a windfall.

By John Burke of Wall Street Sector Selector

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