Facet Biotech agreed to be taken over in an all cash deal by Abbot Labs. The bulk of cash deals are taking place in the healthcare sector, while investors are chasing economically sensitive stocks to play a recovery.
Healthcare companies are also actively buying back stock. Earlier this week we learned that Gilead is actively buying back stock. Yesterday, Amgen did a bond offering even though there are no maturities coming due. That leads me to believe they are buying back stock as well. I believe healthcare is set to pop to the upside.
If we do get a pullback over the next week I will be looking to gain exposure to Amgen, Gilead and possibly the IBB (which is the biotech ETF)