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 (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.
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.