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 - Get Report) 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 - Get Report) and Johnson&Johnson (JNJ - Get Report)may also join the race.
SPDR S&P Biotech Fund
(XBI) is rising 4% on Monday morning. Its top holdings include
(REGN), up 5.4% and
(BIIB - Get Report), up 4.9%. Other biotech ETFs including
iShares Nasdaq Biotechnology
(BBH) also gained smartly.
More on Biotech
13 Drugs Facing FDA Approval
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 - Get Report) 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.