Indices in the USA held firm in early trading, after wobbles in Europe with Crude Oil falling 3% and mining stocks taking a battering. All that didn’t seem to faze the S&P500 or the Nasdaq 100, with only the Dow Jones staying negative from the big 3 in early trade.
Pharmaceutical stocks were on the move higher, with double digit percent gains for Horizon Pharma (HZNP), Eagle Pharmaceutical (EGRX) and Infinity (INFI). Surprisingly down on the day Valeant (VRX) who have promised to do “better with deadlines” and posted Q1 earning guidance of $1.30 to $1.55 per share.
However, energy stocks were being hit hard. With Crude falling amid concerns on the Canadian wildfires, stocks were down (mostly) across the board, with Suncoke Energy and Chesapeake in the red negative board once again.
Gold stocks were weak also, with Barrick Gold falling hard and down over 5% midway through trading, Silver Wheaton and Newmont Mining Corporation also pulling back over 6%. Gold miners have been on a stunning run since the early part of 2016, and although this is a decent “blip”, they still remain in a bullish uptrend.
Here are MarketRealists comments on Gold:
“The overall performance of gold in 1Q16 was remarkably positive. Gold claimed its highest quarterly return in almost three decades. Silver has outperformed gold over the past month. Gold and silver have risen 21% and 25.2%, respectively, since the beginning of the year.”
It’s hard to imagine a trend this strong continuing without a good retrace at some point. This could be the beginning, however most analysts seem to think there is more money waiting on sidelines for Gold and Silver, and any decent fall may be seen as a good entry point for those that missed the initial moves.