Tweet, Rumor And Bernstein Fueling Rallies In Gilead Sciences, Vertex Pharmaceuticals

Loading...
Loading...

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Gilead Sciences, Inc. 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 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.

Related Link: Bernstein: It's Time For Gilead To Pull The Trigger On This Acquisition

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 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.

Loading...
Loading...
Posted In: RumorsTechnicalsIntraday UpdateMoversTrading IdeasAdam Feuerstein
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...