Market Overview

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

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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.

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 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.

Posted-In: Adam FeuersteinRumors Technicals Intraday Update Movers Trading Ideas


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