Tweet, Rumor And Bernstein Fueling Rallies In Gilead Sciences, Vertex Pharmaceuticals
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Gilead Sciences, Inc. (NASDAQ: GILD) shares were trading higher by $3.75 (3.5 percent) at $104.40 in Tuesday's session. The catalyst for the rally is a Adam Feuerstein tweet, where he wrote "$GILD should buy $VRTX for $45B." Throw in some unconfirmed market chatter of Bill Ackman taking a $2 billion stake in Gilead and also said to be supporting the acquisition of Vertex, coupled with Bernstein urging the same, and you have a rip-roaring rally in both issues.
At time of writing, Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) shares were trading higher by $8 (6 percent) at $133.35, putting it within striking distance of its all-time high of $136.33.
Meanwhile, the range bound action in Gilead Sciences continues to be just that. On February 4, the issue traded sharply lower off a Q4 beat coupled with lower guidance, falling from $107.83 to $98.43. On that day, it bottomed at $95.81 before staging a quick recovery to $105.42.
Following that sharp rebound, it drifted lower and found support just below its earnings low, reaching $95.38 on April 4 before staging another rebound.
Tuesday's news has nudged the issue towards the upper end of the recent trading range, reaching $104.92 before retreating to its current level.
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