The Standard & Poor 500 was up double digits, by more than 8%, to over 1,278 on Monday. The surge was led by healthcare companies, with regional financial stocks providing the ballast.
Rising by more than 110% was Icagen (NASDAQ: ICGN) on a report late Friday that Pfizer (NYSE: PFE) was considering entering a “strategic transaction” with the company. Closing at $2.40 on Friday, Icagen answered the opening bell at $5.57, dipped just under $5 during the morning, then was trading slightly above $5.10.
Up more than a third in morning trading was XOMA (NASDAQ: XOMA), another biomedical firm, charging out of the gate at $2.35 and soaring over $3 per share before settling to trade back around $3. XOMA is trading more than 11% above its 20-day moving average and 3% above its 50-day moving average. However, it is trading more than 18% beneath its 200-day moving average. This is supported by the beta for XOMA, which is over 2.
Another company in the healthcare industry was up more than 30%, as Continucare (NYSE: CNU) opened the new week at $6.26 after closing Friday at $4.77 because of a buyout offer from Metropolitan Health Networks (NYSE: MDF). The offer was for $6.25 in cash per share with stock. The total value of the buy is $391.1 million.
Down by about 90% was an exchange-traded fund, the VelocityShares Daily Inverse VIX (NYSE: XIV), which seeks to replicate, net of expenses, the inverse of the daily performance of the S&P 500 VIX Short Term Futures Index. XIV is about 90% below its 20-, 50- and 200-day moving averages. It is trading at more than 90% its 52-week high and more than 80% above its 52-week low.
Hampton Roads Bancshares (NASDAQ: HMPR) was down more than 30%, opening at $13.11 but quickly falling to trade around $10. Hampton Roads recently recapitalized and has been selling off assets. It is trading more than 40% below its 20-, 50- and 200-day moving averages. The stock is off more than 70% from its 52-week high. With a relative strength index of just over 23, it is selling well under the 30 benchmark for a stock that is considered to be oversold.
The Bank of Kentucky (NASDAQ: BKYF) was another regional financial down in double digits, closing Friday at $24.77 and now trading under $22 per share. Last week, the Bank of Kentucky was also a top loser for the S&P. The Bank of Kentucky is trading more than 12% below its 20-day moving average and almost 10% under its 50-day moving average. The stock is almost 16% down from its year high of $26. The relative strength index for the Bank of Kentucky is at 28.81.
Jonathan Yates does not own any of the stocks mentioned in this article.
