Notable ETF Movers of the Day 01/04: (OIH) (XBI) Higher; (GLD) Lower

January 4, 2013 1:25 PM EST

Market Vectors Oil Services ETF (NYSE: OIH) gained 1.5 percent to 40.4. Yesterday's big news involved Transocean (NYSE: RIG) which moved higher after investors learned of a $1.4 billion gulf spill settlement reached with the Department of Justice. Today RIG is higher for the second day in a row, adding 3.5 percent and contributing to an overall bullish tone for stocks in the sector.

SPDR S&P Biotech (NYSE: XBI) gained 1.45 percent to 92.9. While the ETF moved higher today, individual stocks were mixed, in part because of profit taking in several names following a 5-day rally that has the ETF in the green by 7.4 percent. The bullish sentiment is being tied to hopes the FDA will increase the rate of drug approvals in 2013, a trend that has been slowly developing as biotech companies focus on drugs targeting rare diseases. Dendreon Corp. (Nasdaq: DNDN) was a notable mover today, gaining 5 percent. Eli Lilly & Co. (NY:LLY) stock gained 4 percent after the company offered 2013 guidance that was above views.


Market Vectors Gold Miners ETF (NYSE: GLD) declined 1 percent to 159.5. The move lower in gold came in response to confusing reports from the Fed yesterday. FOMC minutes showed several members thought it would be appropriate to slow or stop purchases well before the end of 2013. Previous assumptions tied Fed easing to, in part, a substantial improvement in the labor market. An unemployment rate of 6.5 percent is generally viewed as the target. However, with unemployment expected to remain above 6.5 percent for some time, investors are puzzled. Spot gold declined to lows of $1625 per ounce, but later recovered to $1650. Gold bears found additional ammo in Friday's stronger than expected jobs number.

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