celgene is one of the best acting megacaps.looks like it's playing for a break down at the breakout level. risking about 2.5% of the stock price. and you give yourself some time to do it i think that makes a lot of sense. it's important to remember, if we had meg on, another one was down i think one way to do it if you don't know the story well enough in the earnings is maybe look at the ivb or xpi and just look at it avoid the sin croat syncratic exposure >> that's actually one of the reasons one of the places where you see names, a lot of options activity tends to be bio tech for this reason and sometimes, it is to your point, very much adult swim because these circumstances, whether something works out is very binary but celgene is a name that's proven itself over a more extended period of time. it's not a one-trick pony. it is trading at a relatively cheap valuation. >> you're an adult and you like to swim. >> pardon me >> you're an adult and you like to swim. >> both actually i would be in the adult swim >> in celgene? >>

there are things like walgreens, comcast, celgene it's as good a proxy as any for leading large cap technology stocks i thought i'd start out with a long-term chart, just sort of at or near the lows in the '09 crisis what we have optically is quite clear. you have this massive outperformance, almost three-bagger over the market now i want to remove the s&p and just look at the chart of the qqq on the same time frame so here what we have is the actual chart that we're looking at with its actual high/low close action and what we know is the following. if i simply put in a channel, and the thing about this is i didn't manipulate it these are actually two parallel lines put in by a program or computer what history does tell us often is that if you do over shoot the top like this, that you often will check back. now what's happening is the check back is yunds wunderway

stocks like apple and then bio tech names like celgene for example. then secondary leadership like materials that could have done well this month. moving on is the relative strength index it charged the momentum of an index or stock for a short period of time that's a scale of 1 to 100 so a reading above 70 is considered overbought and oversold. at the open the nasdaq composite. i have never seen this reading in 20 years on a major index 99.3 out of 100. i'm not sure if that's a historic high but a reading of 99.3 is absurdly overbought.

the biotechs have come back into favor, rejenner on, celgene. it's more friendly environment makes it easier to buy stocks like portola hand over fist when certainly's going right. a lot has gone right in the past few months they made a deal with health care royalty, in exchange for 50 million up front and more if it gets fda approval. then we got encouraging signs on byvexa, the anti-clotting therapy and a little less than a month ago, the regulators flat out gave the drug their approval bevyxxa is going to roll out sometime this fall and it's huge it's much better than any anti-coagulants on the market. the stock rallied 46% in three

it's the heavyweights like celgene, biogen and rejenneren all up about 1% or mo on the day. the etf gained about 10% last month for the best month since july of last year, this of course will be a sector to watch as we head into the second half of the trading year. michelle, we're seeing more biotech ipos finally after a big drought from that sector >> yeah, watershed moment for them time for "street talk. first stock is buffalo wild wings. stevens downgrading the stock, citing the uncertainty about future leadership. analyst says buffalo wild wings is one of our favorite casual dining names, however they lowered the pry target from 145 to 195, so a far less bigger move than what they're expecting. >> it's been a tough year for buffalo wild wings investors, stock's down 20%, even with the so-called activist inside there. >>> stock number two, pandora.

and they include some wynn resorts, amazon, celgene, ibm, tjx. >> july is not often a strong month, it can definitely be mixed. >> yeah, john, you're at one market all week long >> i am all week long. and we're certainly going to be having a lot of discussions about culture out here this is typically a week where some companies take some time off around the holiday, but good conversations to be had as people reflect, carl >> yeah, well, everybody, enjoy the fourth let's all take gratitude that we live in the best country in the world. let's get over to the "closing bell," which starts now. ♪ baby, you're a firework ♪ come on, show 'em what you're worth ♪ make 'em go, oh, oh, oh ♪ >> we had to >> you have to understand, i listen to tunes. i don't listen to words. so of course, i recognize that song >> this is katy perry singing "firework. happy fourth of july, everybody. well, a day early.

thursday, bristol myers, celgene, astrazeneca and merck in terms of projections, doesn't expect a solid though not spectacular second quarter earnings, just increased earnings for estimates across the board and says he expects qtq2 to be very good. tr pricing in the second quarter for several drugs. those could drive results, 24 rent entries between april and july 2017. in terms of stocks, take a look. those have a lot of what cowen calls troubled franchises.

the upside celgene, obviously, have been a little bit stronger, but the big pharma names, as well. merck, pfizer, i own those j&j, i was in there for a while, but it seemed like it was getting a little bit lofty in terms of a p\e, so i wanted to wait for an opportunity when it pulls back, but it has not given me the opportunity yet >> it is tough trying to call a top in a stock that looks pretty darned good with a chart that backseat that up >> and i was looking at a couple of mid-cap names and you've got to get to sometimes the second page to find any fundamental investors. so this is also driven by quaunt trading. >> that, of course, what our call of the day. we'll keep an eye on that. two big sales for j&j. speaking of downgrades, two other big sells on the street today. the trader blitz starts now. wells fargo downgraded to sale >> you have a look of incredulity on your face

it rost 27% to 66.28 and celgene was off 1% to 131.95. shares of l brand dropped after bigger than expected sales miss in june. the operator of victoria's secret and bath and body works said dropping swim wear and apparel categories had a negative impact on sales. l brands fell to 46.49. >>> and costco posted a rise in month ly sales numbers, the retailer rept sal in june that's up 7%, but still percent ough for wall street. to 157.09. >>> berkshire hathaway could be buying encore. according to the "wall street journal." last year, nex ra's was jekted by bidders in texas. shares were off a fraction. a fraction. $1950 a share to $255,550. and as we told you week, this was coming, but today, microsoft announced the a major shake up that will include thousands of layoffs. the tech giant said the cuts will mostly be in sales as the company aims to change the way it sells cloud services. shares of microsoft were off 51 cents to 68.57. and endo international took its painkiller off the market. amid rising concern about addiction and overdoses.

now we go from celgene to blue, not blue apron, bluebird delivers the cure. you lost 80% of the value here in bluebird bio, but look what the stock's done beautiful run off the bottom, higher lows, there's your 200-day. you're currently higher. this is a stock that continues its comeback and finally, we go to gilead now, you sort of know the story here 50% decline. you've been below the 200-day for almost 18 months now, but just recently, the stock takes a break from going down every day, and you see this very nice rally, you've reclaimed that 200-day, you've taken out the trend lain i'm not telling you it's a textbook bottom. but i am telling you, this is a stock to trade here on the break of the trend line, the break of the 200 day, this is a stock that could make nice comeback in the short to intermediate term secular based breakout in biotech has further room to run. >> rich, come on over. >> amazing work you guys have done what do we call that thing now >> the plasma. >> brilliant >> i have a broader question we were just talking about health care, overa

will buy a 6% stake in beigene celgene will help develop and commercialize an investigation treatment tumor cancers. >>> reckitt benckiser warning it will report lower sales for the second quarter due to a cyberattack from ukraine last month. the maker of lysol says revenues will be around 2% lower when compared with last year. the stock backing off a bit on that news. >>> sodexo is cutting full-year sales growth goals after the firm saw weaker performance in the third quarter. stock down just about 6% >>> associated british foods reporting stronger than expected results for its latest quarter reporting to low cost fashion and positive exchange rates feed nothing results. >>> sir richard branson is lashing out against brexit and some of trump's policies branson speaking with cnbc on board virgin australia's maiden flight between australia and hong kong. he said he is dismayed with the rise of protectionist policies, particularly in the u.s. and uk. >> trade protectionism is so unhealthy. you know, i think what's happened with brexit was a terrible, terrible mistake, both for europe an

190% year to date and reached an all-time high the biotechs have come back into favor, rejenner on, celgeneit's more friendly environment makes it easier to buy stocks like portola hand over fist when certainly's going right. a lot has gone right in the past few months they made a deal with health care royalty, in exchange for 50 million up front and more if it gets fda approval. then we got encouraging signs on byvexa, the anti-clotting therapy and a little less than a month ago, the regulators flat out gave the drug their approval bevyxxa is going to roll out sometime this fall and it's huge it's much better than any anti-coagulants on the market. the stock rallied 46% in three hours. citigroup raised its price target it's climbed higher to nearly 65 today. while that may seem like a ridiculously dramatic move, the fact is these things happen all the time in biotech. if the fda rejected their drug, the stock would have been eviscerated. instead it got approved and it was launched into the stratosphere early the only thing that matters is fda approvals everything before that is reading tea

this time it moved into faang stocks like apple and then bio tech names like celgene for example. then secondary leadership like materials that could have done well this month. moving on is the relative strength index it charged the momentum of an index or stock for a short period of time that's a scale of 1 to 100 so a reading above 70 is considered overbought and oversold. at the open the nasdaq composite. i have never seen this reading in 20 years on a major index 99.3 out of 100. i'm not sure if that's a historic high but a reading of 99.3 is absurdly overbought. and in the past they usually turn back. i'm not trying to turn anybody into a technical analyst i'm well aware a t lot of our viewers have the looking at technical analysis but the markets have gone nowhere but straight up for nearly three weeks and in this case technical talk is a very useful way to illustrate you. >> well a man that moves markets strikes again as some investors say his note is partly what spooked investors. jp morgan's global head of quantitative strategies. joins us now good to see you again. he co