Closing Bell: Big Biotech Sell-Off as Dow Rallies, Nasdaq Edges Up


A late day rally on Wall Street, but a big sell-off for biotech stocks.

The Dow Jones Industrial Average (^DJI) rallied 137 points, the S&P 500 (^GSPC) gained 9, and the Nasdaq (COMPX) turned higher in the final minutes of trading.

Some of the biggest Nasdaq stocks and some of the best performers this year gave back some of their recent gains.

Google stock
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Google (GOOG) dropped 3.5 points, Netflix (NFLX) fell 4, and Tesla Motors (TSLA) lost 5.

Apple (AAPL) ended little changed, even though mutual fund giant Fidelity Contrafund cut its stake in the tech giant. In addition, a federal trial opened with the government charging that the company conspired with publishers to raise the price of e-books.

There are also a number of reports that Apple is about to launch a music streaming service. That sent shares of Pandora (P) down 10 percent.

And biotech stocks were sharply lower across the board:
  • Amgen (AMGN) fell more than 1 percent.
  • BioMarin (BMRN) Pharmaceutical fell 4 percent.
  • Gilead (GILD) and Biogen-Idec (BIIB) also fell.
  • Affymax (AFFY) dropped 18 percent on word its stock will be delisted by the Nasdaq.
  • And Infinity Pharmaceuticals (INFI) was the big loser, plunging 39 percent.
But Big Pharma posted strong gains. Merck (MRK) rose 4 percent and Bristol-Myers Squibb (BMY) gained 3 percent. Both reported promising developments about cancer drugs in late-stage development.

Ford (F) and General Motors (GM) both edged higher after reporting strong sales in May, led by pick-ups and SUVs. But shares of Toyota fell 1 percent. That's partly tied to the big sell-off in Japanese stocks.

Others movers of note:
  • Intel (INTC) gained nearly 4 percent following a ratings upgrade by FBR.
  • Other blue chip gainers: Boeing (BA), McDonald's (MCD), Coke (KO) and Microsoft (MSFT), all up more than 1 percent.
  • F5 Networks (FFIV) lost another 5 percent after Morgan Stanley lowered its rating on the maker of data management equipment to "neutral".
  • Zynga (ZNGA) fell 12 percent. It's cutting its workforce, closing offices, and forecasting another loss.
  • And Cracker Barrel (CBRL) rose 6 percent. Its quarterly net was better than expected, and the restaurant company raised its forecast for the full year.
–Produced by Drew Trachtenberg

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how completely exciting for wall street! too bad things are getting so much worse on every other street in the united states.

June 03 2013 at 9:33 PM Report abuse -1 rate up rate down Reply
1 reply to mily469's comment

I don't what little streets you're looking at, but every street I see is a damn sight better off than it was five years ago when our IRAs were worth 30% of what they are today. I think you just want to complain but really have case.

June 03 2013 at 11:43 PM Report abuse rate up rate down Reply
1 reply to streitrhoades's comment

seriously. take the blinders off. wall street is total complete BS today. you buy into the BS, good for you. reality is, yes it is not as bad as it was, but it is not getting any better. there is no such thing as a jobless recovery. all wall street got going for it today is we bail them out with free cash to cover their gambling debt. that does not work for anyone overall in the short or long term. you are BS.

June 04 2013 at 7:17 AM Report abuse rate up rate down