NEW YORK (TheStreet) -- Pharmaceutical and Biotech ETFs are prominent gainers on Monday morning as M&A deals appear poised to pick up in the sector. Speculation that Sanofi Aventis (SNY) is looking to acquire Genzyme (GENZ) sent the stock of Genzyme soaring on Friday. Word on the street is that other large pharmaceutical majors such as GlaxoSmithKline (GSK) and Johnson&Johnson (JNJ)may also join the race.
The SPDR S&P Biotech Fund (XBI) is rising 4% on Monday morning. Its top holdings include Regeneron Pharmaceuticals (REGN), up 5.4% and Biogen (BIIB), up 4.9%. Other biotech ETFs including iShares Nasdaq Biotechnology (IBB) and Biotech HOLDRS (BBH) also gained smartly.
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PowerShares Dynamic Pharmaceuticals (PJP) is up 2% on Monday forenoon trading.Other ETF gainers include the iShares Dow Jones Transportation Average (IYT). The ETF is heading higher after Fedex (FDX) raised its full-year outlook. Homebuilder ETFs also rebounded on Monday after new homes sales in June showed strong monthly gains of 23.6%. The SPDR Homebuilders ETF (XHB) is up 2.1%. -- Reported by Shanthi Venkataraman in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.
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