Biotechnology shares are generating the best risk-adjusted returns among U.S. industries, gaining as drugs to treat cancer and rare diseases boost sales and spur takeover interest from the biggest pharmaceutical companies.
Nabors Industries Ltd. has gotten so cheap that traders in the options market are betting the world’s largest land-drilling contractor may be a takeover candidate after the departure of its 81-year-old chief executive officer.
A false report of explosions at the White House that wiped out $136 billion from the Standard & Poor’s 500 Index in about two minutes highlighted the risks of the computerized trading that dominates the $18 trillion market.
Stocks rallied, sending the Dow Jones Industrial Average to the highest since October 2007, as Italy sold debt amid political turmoil and U.S. data bolstered confidence in the world’s largest economy. The euro rebounded from a seven-week low and Italian 10-year bonds gained.
U.S. technology stocks, the second- best industry of the past decade, have fallen to the cheapest levels in at least seven years and are vulnerable to more losses as analysts reduce second-quarter profit estimates.
U.S. stocks rose, erasing losses since Election Day for the Dow Jones Industrial Average, after German investor confidence climbed and traders awaited progress on federal budget negotiations in Washington.