This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Midday Movers: Biotech Bullishness Trumps Uncertainty Over ISM Numbers:

NEW YORK (TheStreet) -- The major indices traded near flat by noon Monday as traders struggled with whether to trust manufacturing data from the Institute For Supply Management. But the heat map showed sentiment on the biotech sector was solidly in the green.

The Institute of Supply Management corrected a report, released this morning, indicating that manufacturing growth had significantly slowed in May from the prior month. Instead, manufacturing growth actually accelerated.

ISM "glitch" CORRECTIONS ACTUAL PMI 56.0 New Orders 56.9 Production 61.0 emp 52.8 supplier deliveries 53.2 @BloombergRadio $MACRO $SPY ? Thomas Turner (@thomasturner) Jun. 2 at 11:25 AM

$SPY ISM what? Is this even truthful? So now they changed the program to make it look good? scammers ? Robert J Sullivan (@MTPennybags) Jun. 2 at 11:48 AM

ISM said that its manufacturing index climbed to 56.0 from April 54.9. That data topped economists' expectations for the index to hit 55.8, according to MarketWatch. At 10a.m., ISM said that its manufacturing index fell to 53.2. However, it later said that incorrect seasonal adjustments had been applied to the data, leading to a falsely lower result.

ISM's new data fell more in line with earlier numbers from MarkIt. The firm's purchasing managers index climbed to 56.4 in May from 55.4 in April.

Some investors said the manufacturing data never indicated as much about the economy as people hoped. They turned to biotech in hopes that companies' extensive trial results would prove more trustworthy than national manufacturing surveys.

A scan of StockTwits' heatmap showed that investors were bullish on several biotech names: Ariad Pharmaceuticals  (ARIA), MannKind  (MNKD), Omeros Corporation  (OMER), Pharmacyclics  (PCYC), and NPS Pharmaceuticals NPSP. Ariad and Pharmacyclics each released encouraging drug trial data in the past twenty-four hours. MannKind traded up on hopes that management would have good news to reveal at a conference later today about its inhaled insulin treatment Afrezza, which is pending FDA-approval. NPS Pharmaceuticals moved on a Financial Times report that Shire is considering making a $4 billion bid for the company. And Omeros Corporation rallied on news that the FDA had approved a drug for use during cataract surgery.

$OMER No need for fear now...An unlikely rejection would have been devastating...should outperform from here on... ? fayez haroun (@victor521) Jun. 2 at 12:01 PM

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%
YHOO $45.10 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs