Nasdaq Biotechnology Index Falls Further

The energy sector was the worst performer on Monday, shedding another 5%.


Decline in biotech stocks erased a few of the day’s earlier gains. The fear-gauge CBOE Volatility Index (VIX) surged 17% to settle at 27.63. For 88% stocks that declined, 10% advanced. Britain’s FTSE 100 was up 1.9 percent. Yuan’s depreciation in August hurt profits of export oriented companies last month.

CRUDE: The price of benchmark crude oil edged up 28 cents to $46.64 a barrel in New York.

Bank of America, JPMorgan, Citigroup and Wells Fargo were up between 1.8 percent and 2.6 percent.

The S&P 500 and the Nasdaq composite index have closed down for the past five sessions.

“All of this data will be parsed for signs that the five-year-old slowdown in China is impacting the USA economy“, John Canally, investment strategist and economist at LPL Financial, said in a recent note. The beta value for this stock stands at 1.48 points, while its earnings per share(EPS) was $0.44. Key stocks from the sector including The Dow Chemical Company ( DOW ), LyondellBasell Industries N.V. ( LYB ), PPG Industries, Inc. Gold fell more than 1%, or $15.80 an ounce, to around $1,129.80, a one-week low.

VOLATILE: Mounting concerns about slowing global economic growth and the timing of the Federal Reserve’s first interest-rate hike in almost a decade has battered markets in recent months.

Nike competitor Under Armour Inc. gained 1.4 percent.

Last week, biotechnology stocks fell after Hillary Clinton targeted specialty drug makers, tweeting about a plan that would counter “price gouging” and proposing new rules that would control prescription-drug spending.

However, PSCH is not particularly heavy on biotech stocks.

The iShares Nasdaq Biotechnology ETF plummeted 6% on Monday, on track for its biggest loss since 2011.

IBB components include Celgene (NASDAQ:CELG), Amgen (NASDAQ:AMGN) and Gilead Sciences (NASDAQ:GILD). ( GILD ) and Regeneron Pharmaceuticals, Inc.

Separately, shares of Williams Companies, Inc. Shares of Williams dropped 12% while shares of Energy Transfer were down 7%.

In addition, the company’s products are increasingly popular in China, where the company saw sales jump 30% year-on-year to US$886mln. He said he expected growth in the second half will be “a little bit weaker” than in the first half.

Bloomberg News contibuted to this report.

Though a year-over-year gain of 0.3% in PCE index – an important indicator of inflation – indicated that the inflation rate is significantly below the Fed’s target of 2%, a rise of 0.4% in consumer spending in August signaled toward rising demand.

In London, FTSE100 was trading up 141 points at 6,104, while in France and Germany, shares were also higher.

“I think that the economy is doing pretty well”, Mr Dudley said at an event in New York.

Her remarks were aimed at soothing global markets that tumbled in reaction to Yellen’s statement soon after the bank’s policy meeting last week, which raised questions about the United States recovery. It was also higher than the preliminary reading of 85.7.


Meanwhile, the major European markets are turning in a mixed performance on the day.

How the Dow Jones industrial average fared on Friday