U.S. markets traded modestly higher on the first day of June amid slightly improved economic data, and an important medical research conference taking place in Chicago.
The institute for Supply Management reported its index of national factory activity in May was 52.8. Since April’s 51.5 reading was tied with March for the lowest reading in more than two years, May’s increase was seen as very good news; it was also better than the Street’s expectations for 52.0.
The Purchasing Manager’s Index (PMI) for May came in at 54.0, below April’s 54.5 reading but slightly above the expected 53.8 level. In addition, April’s construction index increased 2.2% to $1 trillion and was the highest level since November 2008.
The Dow Jones Industrial Average, the S&P 500 and Nasdaq Composite were all up 0.2%. Technology, industrials and healthcare stocks were the dominant issues today, even though sectors in general were quite mixed.
The American Society of Clinical Oncology’s conference in Chicago was producing a lot of buzz for various biotech and pharmaceutical companies. Several of these stocks, such as ImmunoGen (IMGN) and Bristol-Myers Squibb (BMY) were trading higher off news that was positive. As a result, those two along with LinkedIn Corp. (LKND) are three of today’s best stocks.
Bristol-Myers Squibb (BMY)
BMY stock plunged nearly 7% on Friday after the company released data that at first seemed to open the door for competitors such as Merck & Co. (MRK) to forge ahead of BMY with lung cancer treatments.
However, over the weekend, a report that the Food and Drug administration (FDA) has approved an application from BMY for two new treatments for aggressive forms of skin cancer led to a 2.9% bounce on Monday for BMY stock. In addition, analysts somewhat re-evaluated their initial perceptions more positively about the long-term potential for the company’s lung cancer treatments.
Bristol-Myers is showcasing its research this week at the ASCO conference in Chicago.
ImmunoGen (IMGN)
IMGN blasted nearly 72% higher today after announcing at the ASCO conference its successful results from its Phase 1 ovarian cancer treatment, IMGN853.
The initial efficacy rate was reportedly 53% for the 17 patients studied. The results will lead to another clinical trial later in the year, with the company’s goal to ask for approval of the drug for advanced stage ovarian cancer.
The huge boost in today’s stock price took out four resistance levels going back to June 2014.
LinkedIn Corp. (LNKD)
LNKD stock was trading 3% higher today after an analyst at RBC Capital Markets reiterated an “outperform” rating on LNKD and a price target of $275 a share.
But interestingly, what was also lifting LNKD stock was some street chatter that some unnamed activist investors are taking an interest in LinkedIn. Details beyond that were sketchy, and it may have just been unsubstantiated rumor, but it was enough to propel the shares higher.
Activist investors have recently been able to dramatically affect the price of stocks they purchase, so watch this one carefully over the next few days.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
