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Biotech / Medical : Ligand (LGND) Breakout! -- Ignore unavailable to you. Want to Upgrade?

To: bob smith who wrote (14083)	2/2/1998 6:11:00 PM
From: tonyt	Respond to of 32384

More on the market: WSJ: "THE DOW INDUSTRIALS soared 201.28 to 8107.78 on Monday, spurred higher by gains in Asia and takeover speculation in the drug sector. The S&P 500 surpassed the 1000-point mark for the first time. But bonds stumbled as Treasurys lost some of their "safe-haven" appeal." Monday, February 2, 1998 Stock Prices Soar As S&P Tops 1000 For the First Time By TERRI CULLEN INTERACTIVE JOURNAL Stock prices soared Monday, as investors cheered news of merger talks in the drug sector and marveled at double-digit gains logged in many Asian markets. The rally rocketed the Standard & Poor's 500-stock index above the 1000 mark for the first time. But bonds sank as Asia's recovery made U.S. Treasurys less desirable as a "safe-haven" investment, and the dollar slipped against the mark and yen. The Dow Jones Industrial Average rose 201.28 to close at 8107.78. Monday's gain brought the industrials to within 152 points of its all-time high of 8259.31. The S&P 500 surged 21 points to a record 1001.28, while the New York Stock Exchange Composite Index also finished at a new high, up 10.09 to 520.72. The Nasdaq Composite Index jumped 33.52 to 1652.88, but remained well below its historic close of 1745.85. News late Friday that SmithKline Beecham and Glaxo Wellcome are deep in discussions for a possible merger sent drug stocks soaring world-wide and helped to fuel the strong rally on Wall Street. American depositary receipts of Glaxo soared 8 13/16 to 62 5/8, while SmithKline's ADRs advanced 4 7/16 to 67 9/16. Warner-Lambert climbed 5 7/16 to 155 15/16, while Schering-Plough moved ahead 2 7/16 to 74 13/16. Meanwhile, worries about the financial crises in Asia evaporated for the moment after investors returning from the Lunar New Year holiday sent stock prices soaring in most key Asian markets. Hong Kong's Hang Seng index rocketed 14%, while Tokyo's Nikkei index closed with a more modest gain of 0.9%. Bellwether stock indexes in Indonesia, Thailand, Singapore and the Philippines all posted gains of more than 10%. Money-center banks, which have been hard hit over fears about their Asian exposure, were one of the biggest beneficiaries of the global market rally. J.P. Morgan advanced 3 3/4 to 104 15/16, Citicorp surged 5 1/2 to 124 1/2 and BankAmerica rose 1 11/16 to 71 3/4. The Keefe Bruyette & Woods bank stock index rallied 17.03 to 738.70. Don R. Hays, strategist at Wheat First Butcher Singer, said worries that have plagued the market throughout January -- Asia's financial crisis, the earnings outlook and the scandal involving President Clinton -- have for now been replaced in investors' minds by encouraging news about the U.S. economy and interest rates from Federal Reserve Chairman Alan Greenspan. "The breakout that we've seen [Monday] has legs that should carry us over for the next several days," he said. But Treasurys slumped as overseas financial markets showed greater stability. Investors also remained wary ahead of a two-day meeting of the Federal Open Market Committee meeting, where the direction of short-term U.S. interest rates will be decided. The meeting begins on Tuesday. Bonds briefly bounced off their lows early Monday after a report on the manufacturing sector showed economic growth slowing. The January National Association of Purchasing Management's index fell to 52.4 from 53.1 in the previous report. Economists had expected a reading of 52.8. The recovery was short-lived, however. In late trading, the bellwether 30-year Treasury dropped more than 1 point, or $10 for each $1,000 bond, to yield 5.87%. World-wide, stocks rallied in dollar terms. The Dow Jones World Stock Index was up 3.37 to 173.42 as of 4 p.m. EST. In major market action: Stocks soared. On the Big Board, volume totaled a heavy 729.5 million shares, with 2,047 stocks advancing and 946 declining. Bonds tumbled. The 30-year Treasury was down slightly more than 1 point, or $10 for each $1,000 face amount. Its yield, which moves in the opposite direction from its price, rose to 5.87%. The dollar eased. It was at 1.8175 marks and 126.55 yen, compared with 1.8295 marks and 126.95 yen late Friday in New York. Tapewatch Update The purchasing managers' index stood at 52.4 in January, compared with 53.1 in December and forecasts for a reading of 52.8. Asian Stocks Surge, Led by Hong Kong Hong Kong stocks surged 14% on Monday, leading an explosive rally that swept much of Asia. Investors swarmed into the region after a long holiday last week, as they gained confidence that stability was returning. But the gains weren't universal, with South Korean stocks skidding 4.2% on profit-taking. National Semi Skids On Profit Warning Technology Stocks: A revenue and earnings warning from National Semiconductor battered the company's stock, driving it down 20% Monday. Prudence Needed Amid Volatility The stock market's rapid mood swings during January highlight the dangers of investing. Analysts and investors argue that February will be a good month to think about the level of risk that still lingers in stocks.

To: bob smith who wrote (14083)	2/2/1998 6:24:00 PM
From: Henry Niman	Read Replies (2) \| Respond to of 32384

Bob, CNBC's The Edge just had Brian Finnerty and Vincent Farrel on. Not surprisingly, the discussion turned to today's big move by the pharmas. Both analysts were in agreement on the superiority of Biotech over big pharmas. They noted that today's merger mania was being fueled for a large R&D requirement, but they compared big pharma valuations to Biotechs. MRK's market cap is $140 Billion and they spend $1.5 Billion on R&D. In contrast, all Biotechs combined had a market cap of $85 Billion with $5 Billion spent on R&D. Thus they both agreed that Biotechs were a much better value for the long term investor.