New York Report: Shares bounce back from two days of decline
US STOCKS ended higher last night, rebounding from a two-day decline as the hard-hit biotechnology sector regained its momentum and a strong read on consumer confidence increased optimism about the economy.
Trading was choppy throughout the day with the Nasdaq at one point turning lower, led by a sharp reversal in biotech shares.
So-called momentum stocks were still down for the day but off their lows, including Netflix, down 2.1 per cent. Netflix has declined for 14 of the past 15 sessions, falling almost 19 per cent over that stretch.
Biotech shares also reversed earlier losses, including Regeneron Pharma, ending 0.8 per cent higher at $308.87, and Gilead Sciences, up 1.3 per cent at $73.03.
Alexion Pharma ended 2.2 per cent higher at $153.08.
“Investors become momentarily concerned about valuation, but that pullback was healthy, and we could see modest gains from here just because equities remain the most attractive place to be,” said Kristina Hooper, head of portfolio strategies at Allianz Global Investors in New York.
“Biotechs continue to look attractive since they offer a higher level of growth, and in fact, they look more attractive than they did because valuations improved in the selloff.”
The Dow Jones industrial average rose 91.19 points, or 0.56 per cent, to close at 16,367.88. The Standard & Poor’s 500 Index gained 8.18 points, or 0.44 per cent, to finish at 1,865.62. The Nasdaq Composite Index advanced 7.88 points, or 0.19 per cent, to end at 4,234.27