Tuesday, June 24, 2008

Waiting on the Fed

The markets are struggling to find momentum in either direction today, as traders await the Fed's rate decision tomorrow. In contrast to recent weeks, my financials are up today, while my energy names are modestly lower. The price action in these individual stocks is compounded by the upcoming end-of-quarter. The situation will likely shake out by mid-July as investors position themselves for the second half.

This morning we also got news from Isis Pharmaceuticals (calls 1.4% of portfolio), which finalized a modified version of their deal with Genzyme for the development of mipomersen. Despite the modifications, it still appears to be a good deal for Isis, and will greatly bolster their balance sheet. I have not yet listened to the conference call discussing these developments.