HALFTIME REPORT: SWINE FLU: DON'T LET YOUR PORTFOLIO PANIC
Stocks traded modestly lower by mid-day Monday. New details about the swine flu gave health care and biotech names a boost but dragged down the airlines, hotels and other travel & leisure names.
Shares of Baxter , GlaxoSmithKline , Crucell and Gilead all made gains on the potential that they could benefit from vaccines and treatments.
Both Crucell and Gilead are names that I’m watching explains Jon Najarian, because they both have a great deal of vaccine exposure. But they’re also trading down to their session lows, which suggests the panic may be abating.
Of course, there will be companies that make money from swine flu -- it seems to me GlaxoSmithKline and Baxter are probably good plays on that, Najarian adds.
I agree, concurs Mike Khouw. It’s possible that the government might want some of those firms mentioned above to provide stockpiles.
And swine flu could be a catalyst, adds Joe Terranova. Just what the doctor ordered to give the biotech space a jolt.
WILL SWINE FLU DERAIL GLOBAL RECOVERY?
Oil prices fell more than 3 percent to below $50 a barrel as investors feared swine flu could pose a new blow to an already fragile global economy if trade flows are curbed and manufacturing is hit.