Market Morning Sentiment - June 22nd
US stocks rose for the second straight day on Tuesday as the S&P500, DJIA and Nasdaq gained 0.27%, 0.14% and 0.14% respectively. US Treasury yields also rose for the second straight day. The US dollar strengthened and the price of WTI crude fell 1.06% from $49.37 per barrel to $48.85 per barrel.
Fed Chair Janet Yellen testified before Congress and the Senate Banking Committee on Tuesday and reiterated that the Fed's cautious approach remains appropriate. She noted that the FOMC is monitoring the Brexit vote very closely as a victory for the 'leave camp' would pose a significant risk to the US economy and the stability of global markets. In a somewhat rare statement from a Fed Chair regarding the prices of equities, Janet Yellen said,
"Forward price-to-earnings ratios for equities have increased to a level well above their median of the past three decades. Although equity valuations do not appear to be rich relative to Treasury yields, equity prices are vulnerable to rises in term premiums to more normal levels, especially if a reversion was not motivated by positive news about economic growth."
Market sentiment on the S&P500 has turned slightly more positive as a result of decreased expectations of an eventual interest rate hike in 2016, but still remains negative. Nervousness about a Brexit and the concerns surrounding the strength of the US economy will likely restrict the upside of markets going forward.
Influencer of the Day
FEATURED SENTIMENT LEADER:$OPK
$OPK Social Sentiment and Chatter Volume
65% Strong Buy
Opko Health Inc. Chatter Volume and Positive Sentiment Increasing
$OPK is a diversified healthcare company with a diagnostics business, biologics business, production and distribution assets, and a pharmaceutical business.
On June 21 st, $OPK announced that the FDA had approved its drug Rayaldee to treat secondary hyperparathyroidism (SHPT) associated with Vitamin D deficiency in stage 3-4 chronic kidney disease. It is the first FDA approved therapy to treat this condition. The Phase III trial results showed that Rayaldee corrected Vitamin D insufficiency in over 80% of patients as compared with less than 7% of subjects who received a placebo.
Vitamin D deficiency results in too much of the parathyroid hormone being secreted. If this hormone is persistently elevated for too long it not only weakens bones, but can also lead to the calcification of vascular and renal tissue, which can be life threatening. There are an estimated 9 million patients who could benefit from Rayaldee treatment.
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