This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Health Care ETFs Drop on Profit Concerns

TSC Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking solid outperformance on a total return basis.

Earnings season looks more like flu season as sneezing health care stocks sickened the performance of exchange-traded funds.

During the five trading days that ended Thursday, the 79 health care ETFs we track lost 2.9%, on average. The only exception was the ProShares UltraShort Health Care Fund (RXD), which sells the sector short to generate an inverse performance. The S&P 500 Index was little-changed during the week.

TheStreet.com Ratings

The worst-performing health care fund was the Rydex 2X S&P Select Sector Health Care ETF (RHM), which dropped 6.8%. The fund's two largest holdings Johnson & Johnson (JNJ - Get Report) and Pfizer (PFE - Get Report) slipped 1.5% and 4.5%, respectively.

One of the fund's biggest losers was Thermo Fisher Scientific (TMO - Get Report), which gave up 13%. The company's first-quarter earnings fell 49% from a year ago, ending a nine-year streak of profit growth. Thermo Fisher also cut its 2009 earnings outlook.

Another holding, Biogen Idec (BIIB - Get Report), lost 11% over concerns that its multiple sclerosis drug Tysabri might be linked to a potentially fatal brain infection. The company recently confirmed that a sixth patient contracted the disease since the drug returned to the market in July 2006. The disclosure casts doubt over future sales of Tysabri and raises legal questions.

The ProShares Ultra Health Care Fund (RXL) and the ProFunds Health Care UltraSector ProFund (HCPIX) had the second- and third-biggest declines of the group. Both portfolios aim to track the daily performance of the Dow Jones U.S. Health Care Index with 200% and 150% leverage, respectively.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
SYM TRADE IT LAST %CHG
RXL $74.40 -0.63%
BIIB $400.46 -0.17%
JNJ $101.71 -0.69%
MRK $59.52 -0.97%
PFE $34.32 -0.13%

Markets

DOW 18,234.71 -51.03 -0.28%
S&P 500 2,128.45 -2.37 -0.11%
NASDAQ 5,091.3550 +0.5610 0.01%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs