Biotech Hammered–Here’s Why

General Motors
(
GM |
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PowerRating) and Ford
(
F |
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at Bank of America.

Federated Department Stores
(
FD |
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PowerRating) will buy May Department Stores
(
MAY |
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PowerRating) for $11 billion. The deal, which values May at $35.50, creates the
largest US department store chain.

Yellow Roadway is buying USF Corp. for $1.37 billion in cash
and stock.

January personal income fell -2.3%; personal
spending was unchanged. The Chicago PMI came in at 62.7 for February vs. 62.4 in
January. New home sales fell 9.2% in January to an annual rate of 1.106 million
units.

Trader talk: M&A activity continues, there appears to be confidence in the
boardroom, the rally continues in energy and metals stocks, which have pricing
power. For the month of February, energy stocks rose +18.3%, steel stocks rose
14% and metals stocks rose +12.5%.

In the Nasdaq for February, the SOX rose 10%, INTC  was +8.5%, AMAT
+12%. AMZN was the big ls=oser at -18%. Short interest in Nasdaq shares rose 6%
in February. The VIX is at a 20-year low.

Stocks in the News

Tiffany
(
TIF |
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PowerRating) beat by 0.02, but sees a lower Q1.

Wal-Mart
(
WMT |
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PowerRating) sees February sales up 4%

Heinz
(
HNZ |
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PowerRating) beat by a penny.