Yahoo Finance XBI Takes a Beatdown as Most of Its Securities Tumble
Has the Rumored May Fall Begun? XBI Seems to Think So
XBI gets pummeled
Markets tumbled for the second straight day as the Dow Jones Industrial Average and the SPDR S&P 500 ETF (SPY) both dropped by 0.6% on May 4, 2016. The whole Street is now talking about the May fall, though over the past three years, the S&P 500 has had a very negligible fall and was actually up for two years.
This could be because US markets had been in a bull phase. The situation now is different. With a weak first quarter earnings for 1Q16, previous phobias may turn out to be warranted. The SPDR S&P Biotech ETF (XBI) has remained positive for the past three years. But May 2016 could be a different story. XBI has already lost 5.9% so far in May.
The above chart shows the current price, moving averages, and returns at different intervals of the SPDR S&P Biotech ETF and a few of its holdings along with the SPDR S&P 500 ETF as of May 3, 2016.
The SPDR S&P Biotech ETF closed at $50.74 and was trading below the 20-day moving average. YTD (year-to-date), the ETF has fallen by 27.7%. XBI has a 52-week low-high range of $44.16–$91.11.
Top gainers and losers for the day
On May 3, 2016, the top gainers in XBI were Momenta Pharmaceuticals (MNTA), which rose by ~3.2% on better-than-expected revenues of $19.9 million in 1Q16, as compared to $8.6 million in 1Q15. This increase in sales was mainly driven from Glatopawhich, which accounted for $14.8 million. Medivation (MDVN) is the other stock that jumped by 2.7% on the Street’s news that Pfizer (PFE) is considering acquiring it.
The top loser on May 3 was Amag Pharmaceuticals (AMAG), which tanked by 11.3% on news of lower-than-expected earnings. AMAG reported revenues of $109.3 million for 1Q16, as compared to $89.5 million in 1Q15. The stock was also downgraded by Raymond Jones.
On May 3, AMAG witnessed high trading volumes of ~4.3 million shares, as compared to its three-month average trading volume of ~1.3 million shares per day. It has a weight of ~1.9% in XBI’s portfolio.
Now let’s look at the performance of XBI’s large caps on May 3, 2016.
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