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Markets
Equities had been posting modest gains until the end of the day saw a mild sell-off across the board.
Biotech continued to lead the market higher once again, with the IBB and XBI both up over one percent.
Why The Biotech Jump?
The markets seem to finally realize any changes to drug prices will come through forms of deregulation and not price control. No surprise here. Â Like him or not, President Trump is a free market capitalist. Price controls always seemed like the least likely scenario to us.
Action within Biotechs was more mixed than yesterday’s one-way up direction.
Rates
The yield on Treasuries remains in its recent downdraft.
Dollar
It is beginning to look like the Dollar may be finding a bottom, with support around the 97 level. On the far right of the chart, you can see the makings of a reverse head and shoulder, suggesting we could see strengthening in the Dollar over the next several weeks. Unlock Deeper Insights with Exclusive Member-Only Video Content on The Market Chronicles YouTube Channel – Just $34.99/Month
NXP/Qualcomm
Why Qualcomm May Have to Pay $45 Billion for NXP
In the Qualcomm/NXP article, I drew a very strong argument for why Qualcomm may have to increase its bid for NXP. Valuations for the semiconductor sector (SOXX) have strengthened significantly over the past year, as the global economy has been picking up.  Qualcomm has been running continuous tender offers over the past several months with each period drawing fewer shares than the previous.
AVGO PE Ratio (Forward 1y) data by YCharts
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Michael Kramer and the clients of Mott Capital Management LLC own shares of NXPI and SWKS.
Michael Kramer is the Founder and Portfolio Manager of Mott Capital Management LLC, a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendation made during the past twelve months. Past performance is not indicative of future performance.
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This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.